Mr.  Nathan.  Well,  I  looked  at  these  provisions.  I  am  against  the
reserve  clause,  INIr.  Chairman  and  members  of  the  committee,  and  I
would  not  be  here  testifying  today,  to  be  very  honest  with  you,  if  I
thought  that  the  basketball  league  would  propose  the  equivalent  of
the  reserve  clause.  "Wlien  I  read  this  provision  of  arbitration  as  to
compensation  and  it  says  in  such  explicit  words  as  these  that  the
arbitrator  shall  not  award  compensation  so  substantial  as  materially
to  discourage  the  movment  of  players  from  one  club  to  another,
then  I  think  any  arbitrator  who  has  any  sense  of  objectivity  and
fairness  could  not  set  the  penalty  or  the  compensation  so  high  as  to
preclude  the  players  from  moving.  It  is  very  clearly  said  you  must
not  set  a  compensation  at  the  level  as  materially  to  discourage  the
movement  of  players  from  one  club  to  another.
Senator  Ervik.  It  says  here  in  an  article  in  the  INIaine  Law
Review, — which  is  a  very  illuminating  article  on  this  whole  question

The  end  result  for  the  option  clause  has  the  same  effect  as  reserve  clause
because  the  player  still  is  tied  to  the  club  with  which  he  first  negotiates.
Mr.  Nathan.  For  1  year.
Senator  Erm;n.  Oh,  this  one


Mr.  Nathan.  This  option  is  a  1-year  option.
Senator  Ervin.  I  know.
163

Mr.  Nathax.  It  is  a  1-year  option.
