The reserve clause was struck down in 1975 when arbitrator Peter Seitz ruled that since pitchers Andy Messersmith and Dave McNally played for one season without a contract, they could become free agents.
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There is a Franchise tag option that is similar to the reserve clause; however, teams can only tag one player each year, although they can tag the same player for consecutive years.
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The reserve clause was the basis for the NHL's injunction against the large number of players who had signed with the rival World Hockey Association in 1972, with all but one—against Chicago Black Hawks star Bobby Hull—ultimately thrown out by lower courts.
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Under the Sherman Antitrust Act of 1890, two or more non-affiliated companies in any other interstate business were prohibited from colluding with each other to fix prices or establish schedules or rates.
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In 1975, Messersmith of the Los Angeles Dodgers and McNally of the Montreal Expos had had their 1974 contracts renewed by their teams on the basis of this reserve clause.