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For what it's worth, the real life transition to free agency is more nuanced than OOTP can provide. I think it would be interesting for users to actually experience what it was like for GMs of that time by recreating more of the system which existed back then, as it was rather different from what is the case today.
A brief history of real-life free agency:
The Seitz decision in December 1975 meant that two two players involved in that case immediately became free agents, as they had played out the club option year in the 1975 season. For all players who had signed contracts prior to the 1975 season they'd be free agents after playing out the club option year which covered the 1976 season.
The owners and players agreed to a free agent system, which was formalized in the 1976 CBA.
For players who had signed contracts prior to August 9, 1976, they became free agents after playing out the club option year in their contract. The club losing such free agents received no compensation when they were signed by another team. For players who signed contracts on or after August 9, 1976, they became free agents after acquiring six years of major league service. The club losing these free agents would receive draft choice compensation.
The first free agent re-entry draft was held on November 4, 1976. The basic process was this:
Clubs selected negotiating rights with the eligible free agents in reverse order of standings and alternating by league. Free agents could be selected by up to half the number of teams in MLB (12 in 1976, 13 in 1977 and later). The player's original club also retained negotiating rights. Free agents were ranked bythe number of clubs which had selected them in the re-entry draft. Players selected by only one club were free to negotiate with all major league teams.
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