The overall picture of the National Football League changed with the implementation of free agency in the 90s, even though the fact of some teams being perennially dominant did not change. What has mattered most about free agency, and the salary cap, is that all teams have an equal opportunity to be competitive, and the life blood of small market teams can remain intact.
Reserve Clause
The reserve clause means that a player’s contract can expire and that the club can exercise an option whether or not to negotiate a new deal, but they would not have the freedom to sign with another club. In this sense, they are the property of the franchise. The disadvantage for players is that they cannot negotiate for more money or a better deal elsewhere and are potentially stuck with one team.
The advantage of the reserve clause, and a lack of a salary cap, is that a team can gain a competitive advantage over another team. For example, one team can stack their roster with talent that another team cannot acquire. The lack of a salary cap benefits wealthier teams. The dynasties of the 70s, 80s and 90s that include the Pittsburgh Steelers, San Francisco 49ers and Dallas Cowboys are sometimes associated with these practices.
Restricted Free Agents and Unrestricted Free Agents
An unrestricted free agent is simply a player with no team affiliation. For example, J.P. Losman’s contract was not renewed by the Buffalo Bills and he searched for another team interested in signing him. Losman did not find a suitor and went to the United Football League, but players in greater demand are often signed to a new team.
Rules for restricted free agents are different. Restricted free agents are free to consider offers from other teams, but they must give their current team the chance to match the offer. If the current team can match the offer, or generally come close to it, then the player must remain with the original team.
Disadvantages of NFL Free Agency
Free agency, and the salary cap in particular, has disadvantages for owners because they are limited, and cannot assume ownership of a player. To prevent a bidding war between clubs, the salary cap has been set in place. While dynasties have continued (i.e. the New England Patriots’ three Super Bowl wins), the approach has been different. In particular, player development has been significant for this club.
