Major League Baseball owners mounted one of the most consequential labor conspiracies in modern sports during the off-seasons after 1985, 1986, and 1987. Commissioner Peter Ueberroth had told owners that long contracts were unwise, and the clubs subsequently coordinated to limit position-player deals to three years and pitchers' contracts to two. The result was a free-agent market that abruptly stopped functioning: after the 1985 season, only four of 35 free agents changed teams, while stars such as Kirk Gibson, Tommy John, and Phil Niekro received no offers. George Steinbrenner even offered Carlton Fisk a contract before withdrawing it after a call from White Sox chairman Jerry Reinsdorf. Clubs also reduced rosters from 25 players to 24, reinforcing the impression that the entire industry was squeezing labor in concert.
The following winter was scarcely better. Only four free agents changed teams, Andre Dawson accepted a one-year contract with the Cubs at a pay cut, and three-quarters of the free agents signed one-year deals. The average major-league salary fell 16 percent even as MLB reported a 15 percent increase in revenues. The MLB Players Association filed three grievances. Arbitrators Thomas T. Roberts and George Nicolau ruled for the players, finding that owners had violated the collective bargaining agreement; when direct coordination became harder to prove, clubs created an 'information bank' to share details about offers made to players such as Paul Molitor, Jack Clark, and Dennis Martínez. Damages ultimately reached $10.5 million for the first case, $38 million for the second, and $64.5 million for the third. In November 1990, the owners agreed to a $280 million settlement, with players including Gibson, Ron Guidry, Bob Boone, Jack Morris, Brett Butler, and Dave Henderson receiving opportunities as 'new look' free agents. Former commissioner Fay Vincent said the owners had 'stolen' $280 million, while Marvin Miller argued that the conduct was tantamount to fixing entire pennant races—not by manipulating games, but by manipulating the competitive labor market.
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