No-trade Clause

Definition

A no-trade clause is a contractual clause that allows players to veto trades to certain teams. No-trade clauses are often worked into contract extensions and free-agent contracts as a perk for the players signing such deals.

Some contracts include partial no-trade clauses, which allow a player to block trades to a specified list of teams. In the case of a partial no-trade clause, the player that agrees to such a clause will sometimes be allowed to update on a yearly basis the teams to which he cannot be traded without his consent. In other instances, teams will concede to a full no-trade clause that allows the player in question to block a trade to all 29 other teams.

Beyond that, a player that has accumulated 10 years of Major League service time and has spent the past five consecutive seasons of that service time with one team gains the right -- termed 10-and-5 rights -- to veto a trade to any team.

Examples

Per the terms of his contract extension signed in 2011 -- which spans the 2016-20 seasons -- Brewers outfielder Ryan Braun was given the ability to block trades to 23 of the 29 other Major League teams. On the other end of the spectrum, Twins right-hander Ricky Nolasco agreed to a very limited no-trade protection as part of his four-year, $49 million contract with Minnesota. As of December 2015, Nolasco was reportedly able to veto trades to just three teams.

The Reds' Brandon Phillips reportedly invoked his 10-and-5 rights two separate times between the 2015 and 2016 seasons, blocking trades that would have sent him to the D-backs and to the Nationals.

The Nationals had interest in trading for Phillies closer Jonathan Papelbon in July 2015, but Papelbon had a no-trade provision in his contract that allowed him to block a deal to 17 clubs -- including Washington. Papelbon also had a vesting option for 2016 in his contract with Philadelphia that would be exercised if he finished 48 games. As a means of enticing the right-hander to waive the no-trade clause, the Nationals offered to exercise that vesting option in advance, and Papelbon agreed to a slightly reduced rate of $11 million as a compromise. With those roadblocks worked out, the Nationals traded Minor League right-hander Nick Pivetta to the Phillies in exchange for Papelbon to complete the deal.