The Fair Trade Commission on Nov. 5 said Nippon Professional Baseball likely violated the Anti-Monopoly Law by using an unwritten rule designed to prevent young ballplayers from pursuing careers in the major leagues.

However, no administrative disciplinary measure was issued because NPB had already rescinded the rule in September.

Under the provision, the 12 NPB teams agreed they would not sign players returning from the major leagues if they had previously rejected draft offers by the Japanese teams.

In other words, if such players took a shot at the big leagues but were dropped from the roster or were unsigned, they would have to wait years to join an NPB team.

It was called the Tazawa rule because it was agreed to in 2008, after Junichi Tazawa refused to sign with the team that drafted him and instead followed his dreams of playing in the major leagues. He pitched for the Boston Red Sox when it won the World Series in 2013.

According to FTC officials, the Tazawa rule was never written but the Japanese pro teams were specific in the details.

For example, a player who rejected a draft offer out of high school would not be signed in Japan for three years after his contract with a major league team ended. The period was set at two years for all other players, such as those who rejected draft offers after playing in college or corporate leagues in Japan.

The FTC viewed the 12 NPB teams as corporate entities in its investigation under the Anti-Monopoly Law, which prohibits a joint refusal to engage in a business transaction with another party.

Sources said the FTC began its investigation this summer after Tazawa, 34, returned to Japan after being waived by the Cincinnati Reds from a minor league contract.

He joined the Saitama Musashi HeatBears in a Japanese independent league and awaited the results of the Oct. 26 baseball draft. No team picked him, and he is still with the Saitama team.

The FTC questioned officials of NPB and various teams about the Tazawa rule.

But in September, NPB rescinded the informal rule, released a statement that said no similar rules would be made, and notified all teams about the move.

The FTC then ended its investigation after deciding that no administrative disciplinary measure was called for.

However, a high-ranking FTC official said the anti-monopoly watchdog wanted to send a clear message through the release of its view on Nov. 5.

“We felt there was a need to notify a wider audience about the suspected violations of the Anti-Monopoly Law in terms of the handling of personnel not only in the sports field but also in the entertainment industry and among freelance workers,” the official said.

The FTC has increasingly been looking into contracts in the entertainment industry as well as among freelancers. In 2019, it informed talent agency Johnny & Associates Inc. that it might be violating the Anti-Monopoly Law by pressuring TV stations to shut out former SMAP members who left the talent agency.

The Japanese professional baseball players’ union had criticized the Tazawa rule for severely restricting players’ economic activities, saying it was a clear violation of the Anti-Monopoly Law.

“While continuing with research and other considerations to create a better system, we will make every effort for the improvement of baseball in Japan, be it at the professional or amateur level,” NPB said in a statement released on Nov. 5.

When NPB rescinded the rule in September, Tazawa said: “The rule prevented others who wanted to try for a chance at the majors from going. I want to express my gratitude to everyone because I think it was very good” the rule was rescinded.

Masayuki Tamaki, who has written extensively about sports in Japan, said the Tazawa rule subconsciously applied pressure on young Japanese players who may have wanted to try their hand at the majors but were afraid they would never be able to return to play in Japan.

“Rather that creating such a rule, NPB has an obligation to create a professional league in Japan that young players will find more appealing than the majors,” Tamaki said.