Free agency in MLS is limited compared to other major sports leagues. Players must have at least five years of MLS service and be out of contract to become eligible for unrestricted free agency. Players with fewer years of service who are out of contract enter a re-entry process rather than true free agency.
The re-entry draft system gives the player's current club the first right to re-sign them, with other teams able to select them in subsequent stages. This system, while limiting player movement, is designed to maintain competitive balance. The MLSPA has pushed for expanded free agency rights in CBA negotiations, and the trend has been toward greater player freedom over time. The current CBA represents a balance between the league's desire for parity and players' desire for market-rate compensation.