Legal Definitions - free agency

Definition: Free agency is the ability of a professional athlete to negotiate a contract with any team in the league, rather than being limited to the league's collective system. This is usually granted to veteran players who have been in the league for a certain number of years. The opposite of free agency is the reserve clause, which restricts a player's ability to move to another team.

• LeBron James became a free agent in 2010 and was able to negotiate a contract with the Miami Heat, rather than being limited to his previous team, the Cleveland Cavaliers.
• In baseball, free agency is granted to players who have been in the league for six years. This allows them to negotiate with any team and potentially earn a higher salary.

These examples illustrate how free agency allows players to have more control over their careers and potentially earn more money. It also creates more competition among teams, as they must compete to sign the best players.