Striking Out the Reserve System: Japanese Players’ Quest For Free Agency Freedom By: James Wubben

On March 21, 2023, Shohei Ohtani struck out Mike Trout to seal Japan’s victory over the United States in the World Baseball Classic Championship.[1] During Japan’s undefeated tournament run, baseball fans, scouts, and players were introduced to high-caliber talents that would soon join Major League Baseball. These names included Shota Imanaga (who finished top 5 in both the NL Rookie of the Year and NL Cy Young voting)[2], Yoshinobu Yamamoto (who signed a $325 million contract with the Los Angeles Dodgers shortly after)[3], Matasaka Yoshida (who signed a $90 million dollar contract the year before)[4], Shohei Ohtani (who signed a $700 million contract with the Los Angeles Dodgers later that year)[5], and most recently, Roki Sasaki (who signed with the Los Angeles Dodgers in 2025)[6]. It is evident that Japan is emerging as a prime source for international talent, yet its stringent legal restrictions might be preventing players from beginning their MLB careers sooner.[7]

The free agency system in Japan’s Nippon Professional Baseball (NPB) presents unique challenges, characterized by extended service requirements before players can achieve domestic or international free agency, which creates a landscape starkly different than those in other baseball nations.[8] Recently, the Japan Professional Baseball Players Association (JPBPA) has initiated a significant legal challenge against these constraints, pushing for reform to enable free agency after just six years of service, a move that could dramatically alter player mobility and career opportunities.[9]This legal move, set against a backdrop of cultural norms that prioritize loyalty to one’s team, contrasts sharply with the relatively unrestricted paths to MLB for players from Central America and the well-established free agency system in American baseball.[10] This legal challenge presents a critical juncture in the evolution of player rights in Japan.[11]

Under the current NPB free agency system, players must accumulate seven or eight years of service to achieve domestic free agency, while international free agency, allowing a move to Major League Baseball, requires nine years of service (called the “Reserve System”).[12] The sole pathway for players to make the transition to the MLB before this extended period is through the “posting system” which requires their NPB team to agree to let them enter a bidding process among MLB clubs.[13] Although the bidding process usually ends up in a lucrative posting fee for the NPB team (Yoshinobu Yamamoto’s previous team, the Orix Buffaloes, received a $50.6 million posting fee)[14], it is not uncommon for NPB teams to be reluctant to post their young stars.[15]

Japanese baseball is deeply intertwined with cultural values, especially an emphasis on loyalty to one’s team, which often places team interests above individual aspirations.[16] This cultural backdrop influences how player mobility and free agency are viewed in Japan, with a traditional expectation that players remain with their teams for extended periods of time, resulting in players forgoing the larger salaries they could receive in the United States.[17] Consequently, NPB clubs possess considerable leverage over players.[18] However, the Japan Professional Baseball Players Association (JPBPA) was established in 1985 to advocate for players’ rights, but unlike its MLB counterpart, it has operated without a formal Collective Bargaining Agreement with the NPB, leading to unique challenges in player negotiations and right protections.[19]

One of these challenges was the Tazawa Rule.[20] The “Tazawa Rule” was an informal policy in the NPB that prohibited players like Junichi Tazawa, who had bypassed the league’s amateur draft to play in the MLB, from returning to NPB teams for at least two years after their overseas career concluded.[21] The rule was intended to dissuade players from seeking opportunities abroad at a young age, thereby maintaining control over player movement.[22] However, this practice was deemed likely to violate the Anti-Monopoly Act[23] by Japan’s Fair Trade Commission in November 2021, leading to its official repeal in 2020 (before the case even concluded).[24] This decision not only opened the door for players like Tazawa to return to their home league, but also set a legal precedent for challenging other restrictive practices within the NPB, potentially influencing the current legal efforts by the JPBPA to reform the league’s free agency system.[25]

Currently, the JPBPA is gearing up to legally challenge NPB’s free agency rules on antitrust grounds, with an explicit focus on dismantling the reserve system’s restrictions.[26] This legal effort is supported by the evolving interpretation of Japan’s antitrust laws, as clarified by the Fair Trade Commission, which now acknowledges the applicability of these laws to sports.[27] The urgency of this action stems from the convergence of multiple issues, including players’ rights to their Name, Image, and Likeness (NIL) and the desire for earlier free agency.[28] The timing is critical as it aligns with a growing assertiveness among Japanese players to gain more control over their careers, especially in an era where international sports laws and player rights are increasingly scrutinized globally.[29] This challenge could set a new precedent in how sports labor laws are interpreted and applied in Japan, potentially leading to a more balanced negotiation power between players and teams.[30]

Japanese baseball players’ primary concern with the current NPB system revolves around the extended wait time before they can freely transition to Major League Baseball.[31] As aforementioned, under the existing Reserve System, players must serve nine years in the NPB before attaining international free agency status, unless posted by their team.[32] This delay often means missing out on prime years of their career where they could be playing at a higher competitive level, earning higher salaries for their families.[33] The JPBPA is aiming for a reform that would allow players to become free agents after six years, effectively mirroring the MLB’s system.[34] Such a change would empower Japanese players to take control of their careers, potentially leading to a better overall global baseball landscape.[35]

In stark contrast to Japanese players, those from Central American countries like the Dominican Republic, Venezuela, and Mexico face far fewer restrictions when transitioning to the MLB.[36] These players can sign with MLB teams as amateur free agents from the age of sixteen, bypassing any draft or extended service time requirements.[37] This system allows for a direct path to professional baseball in the United States, where players can become free agents after just six years of service offering them the opportunity to negotiate with any team at a much younger age and earlier in their career than their Japanese counterparts.[38] The Central American system, while enabling early MLB entry, carries risks of player exploitation since many of these prospects are merely sixteen years old.[39] A potential solution for Japanese players might be a compromise, allowing them to sign at eighteen or nineteen, blending early opportunity with enhanced player welfare.[40]

The JPBPA’s legal challenge against NPB could result in a landmark decision, potentially leading to a more liberal free agency system, akin to MLB’s, where players might achieve international free agency after six years, thus dismantling the restrictive reserve system.[41] Overall, things are looking up as there has been rumors of significant negotiations between the two entities and “Six and seven years was on the table at the end of January.[42]” For Japanese players this would mean enhanced rights, giving them greater control over their careers and the ability to make career choices based on opportunity rather than obligation.[43]

[1] Fox Sports, Shohei Ohtani vs. Mike Trout: Final At Bat in the USA vs. Japan 2023 WBC Championship, Youtube (March 21, 2023), https://www.youtube.com/watch?v=NMfBdEV03j8.

[2] Jordan Bastian, Shota achieves another first for Cubs rookie, MLB, https://www.mlb.com/news/shota-imanaga-first-cubs-rookie-to-get-cy-young-award-votes

[3] Sonja Chen, It’s official: Yamamoto joins Dodgers on 12-year deal, MLB, https://www.mlb.com/news/yoshinobu-yamamoto-dodgers-free-agent-deal

[4] Ian Browne, Red Sox sign Japanese OF Yoshida to 5-year deal, MLB, https://www.mlb.com/news/masataka-yoshida-red-sox-deal

[5] Alden Gonzalez, Shohei Ohtani joining Dodgers on 10-year, $700M contract, MLB, https://www.espn.com/mlb/story/_/id/39076745/shohei-ohtani-join-dodgers-10-year-700m-deal

[6] David Adler, Sonja Chen, Japanese phenom Sasaki picks the Dodgers, MLB, https://www.mlb.com/news/roki-sasaki-contract-with-dodgers.

[7] Evan Drellich, A fight over free agency in NPB, with help from an American union, The Japan Times, https://www.japantimes.co.jp/sports/2024/08/25/baseball/japanese-baseball/npb-mlb-union-fight/

[8] Evan Drellich, Ballplayers in Japan prep fight for earlier free agency, and chance to join MLB sooner, The Athletic, https://www.nytimes.com/athletic/5714332/2024/08/22/japan-npb-union-free-agency-nil-rights/

[9] Id.

[10] Id.

[11] Id.

[12] MLB Glossary, International Free Agency – Asia Professional, https://www.mlb.com/glossary/transactions/international-free-agency-asia-professional

[13] MLB Glossary, Japanese Posting System, https://www.mlb.com/glossary/transactions/japanese-posting-system

[14] Dodgers, Yoshinobu Yamamoto come to terms on 12-year, $325M contract, ABC, https://abc7.com/yoshinobu-yamamoto-dodgers-contract-press-conference/14230653/#:~:text=The%20team's%20offer%20to%20acquire,previous%20team%2C%20the%20Orix%20Buffaloes.

[15] Jesse Sanchez, MLB, NPB agree on revised posting system, MLB, https://www.mlb.com/news/mlb-nippon-professional-baseball-agree-on-revised-posting-system/c-66016648; Mark Polishuk, Roki Sasaki Asks To Be Posted For MLB Teams, Chiba Lotte Marines Likely To Denty Requrest, https://www.mlbtraderumors.com/2023/12/roki-sasaki-asks-to-be-posted-for-mlb-teams-chiba-lotte-marines-likely-to-deny-request.html.

[16] Baseball in Japan and the US: History, Culture, and Future Prospects, Asian Studies, https://www.asianstudies.org/publications/eaa/archives/baseball-in-japan-and-the-us-history-culture-and-future-prospects/

[17] Id.

[18] Id.

[19] BR Bullpen, Japan Professional Baseball Players Association, Baseball Reference, https://www.baseball-reference.com/bullpen/Japan_Professional_Baseball_Players_Association

[20] Kyoto Tanaka, FTC scolds NPB over ‘Tazawa Rule’ used to keep players in Japan, The Asahi Shimbun, https://www.asahi.com/ajw/articles/13906609

[21] Id.

[22] Id.

[23] Act on Prohibition of Private Monopolization and Maintenance of Fair Trade, No. 54 of 1947 (Japan), Japan Fair Trade Commission, https://www.jftc.go.jp/en/legislation_gls/amended_ama09/index.html

[24] Tanaka, supra Note 20.

[25] Drellich, supra Note 8.

[26] Id.

[27] Id.

[28] Id.

[29] Id.

[30] Id.

[31] Id.

[32] MLB Glossary, supra Note 12.

[33] Drellich, supra Note 8.

[34] Id.

[35] Id.