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A draft is a process used in some countries (especially in North America) and sports (especially in closed leagues) to allocate certain players to teams. In a draft, teams take turns selecting from a pool of eligible players. When a team selects a player, the team receives exclusive rights to sign that player to a contract, and no other team in the league may sign the player. The process is similar to round-robin item allocation.
The best-known type of draft is the entry draft, which is used to allocate players who have recently become eligible to play in a league. Depending on the sport, the players may come from college, high school or junior teams, or teams in other countries. An entry draft is intended to prevent expensive bidding wars for young talent and to ensure that no team can sign contracts with all of the best young players and make the league uncompetitive. To encourage parity, teams that do poorly in the previous season usually get to choose first in the postseason draft, sometimes with a "lottery" factor to discourage teams from deliberately losing.
Other types of drafts include the expansion draft, in which a new team selects players from other teams in the league, and the dispersal draft, in which a league's surviving teams select players from the roster of a newly defunct franchise. Major professional sports leagues also have special contingency plans for rebuilding a team via a disaster draft, should an accident or other disaster kill or disable many players.[1]
Drafts are usually permitted under antitrust or restraint of trade laws because they are included in collective bargaining agreements between leagues and labor unions representing players. These agreements generally stipulate that after a certain number of seasons, a player whose contract has expired becomes a free agent and can sign with any team. They also require minimum and sometimes maximum salaries for newly drafted players. Leagues may also allow teams to trade draft picks among each other in exchange for other draft picks or in exchange for players.
In 1935, National Football League president Joseph Carr instituted the NFL draft as a way to restrain teams' payrolls and reduce the dominance of the league's perennial contenders.[2] It was adopted by the precursor of the National Basketball Association in 1947; by the National Hockey League in 1963; and by Major League Baseball in 1965, although draft systems had been used in baseball since the 19th century.[3]
Major Indoor Lacrosse League (National Lacrosse League) adopted a collegiate draft in 1988, Major League Soccer in 2000, Major League Lacrosse in 2001, and Major League Rugby in 2020.[4]
Sports drafts are uncommon outside the U.S. and Canada. Most professional football clubs and those in other sports obtain young players through transfers from smaller clubs or by developing youth players through their own academies. The youth system is operated directly by the teams themselves, who develop their players from childhood. Parity in these leagues is instead maintained through promotion and relegation, which automatically expels the weakest teams from a league in exchange for the strongest teams in the next lower league.