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Dispersal draft

A dispersal draft is a procedural mechanism in leagues designed to redistribute players from a defunct, relocated, or merged franchise to the remaining teams, ensuring talent retention within the league while filling roster gaps. This process typically occurs after a team's or , preventing players from becoming unrestricted free agents and allowing for structured allocation based on league rules. In practice, dispersal drafts vary by sport and league but generally follow a predetermined order, often reverse to regular-season standings, with teams selecting players in multiple rounds until rosters are filled or players are released as free agents. For instance, in the Atlantic League of Professional Baseball, the 2018 dispersal draft for the disbanded involved three rounds (with an optional fourth) to assign negotiating rights, held on November 1 and ordered by the prior year's win-loss records. Similarly, the National Lacrosse League's 2024 Panther City dispersal draft distributed 27 players across 13 teams via a 27-pick format, incorporating trades and designations for restricted free agents and draft-eligible players. In , the United Football League (UFL) conducted phased dispersal drafts in January 2024 following the merger of the USFL and , where teams first protected up to 42 players before a league-wide selection of up to 20 more from pooled rosters. These drafts have been employed across diverse leagues, including soccer, as seen in the National Women's Soccer League's 2018 event after the ' contraction, which allocated players like and while permitting pick trades to balance competition. More recently, in May 2025, the held a dispersal draft after the and Danville Dashers ceased operations, allowing the remaining teams to select players from their rosters. Key aspects include protections for star players, salary cap adjustments, and mechanisms to maintain league parity, though they can disrupt team continuity and player stability. Overall, dispersal drafts serve as a critical administrative tool for sustaining league viability amid franchise changes.

Definition and purpose

Definition

A dispersal draft is a special mechanism employed in professional team sports leagues to redistribute players from a defunct, relocating, or merging among the existing teams, ensuring competitive balance across . This process typically occurs when a team folds due to financial issues such as , relocates without retaining its full roster, or is absorbed through a league merger that necessitates player reallocation. Early examples include the 1950 NFL dispersal draft of players and NBA drafts in 1950–51 for the folded and franchises. Unlike regular entry drafts, which allocate new or talent to teams, dispersal drafts specifically involve established from an existing roster, allowing leagues to integrate these athletes into ongoing operations without disrupting the talent pool. The term "dispersal draft" emerged in mid-20th-century North American leagues, referring to the act of dispersing or scattering from the affected team to others in the league. Dispersal drafts serve as a counterpart to drafts, where new franchises select from established teams, but focus instead on reallocating from teams in .

Purpose and rationale

The primary goals of a dispersal draft are to prevent the concentration of in a single entity or market following a team's or merger, thereby promoting competitive balance across the by redistributing equitably among remaining franchises. This mechanism ensures that no single team can hoard valuable assets, which could otherwise exacerbate disparities in team strength and league parity. In cases of team folding due to economic or ownership failures, the rationale centers on avoiding an overall weakening of through orderly asset distribution, rather than allowing uncontrolled free agency that might lead to bidding wars, player unemployment, or uneven talent allocation. By conducting a structured , leagues mitigate the chaos of sudden player availability, preserving operational stability and preventing scenarios where high-profile athletes flood the market, potentially devaluing contracts or leaving lower-profile players without immediate opportunities. For , dispersal drafts provide key benefits by guaranteeing continued employment and competitive opportunities within the league, bypassing the uncertainties of full free agency such as prolonged negotiations or risks without compensation. This approach allows athletes from disbanded teams to integrate into established rosters swiftly, maintaining their professional trajectories while leagues uphold contractual obligations. On a league-wide , these drafts sustain interest by dispersing star players to multiple markets, fostering broader competitiveness and preventing talent monopolization that could diminish or viewership in weaker . However, criticisms include the potential for undervaluing players through non-negotiated assignments, which may limit earning potential compared to open-market bidding, and the disruption of established team chemistry as rosters are involuntarily altered during crises. Despite these drawbacks, the necessity in failures justifies the process as a stabilizing measure.

Draft mechanics

General process

The general process of a dispersal draft commences with the league's announcement of a team's or , at which point the roster of the defunct team is compiled for redistribution, typically encompassing all under or with club options, excluding those already traded away prior to the . In some instances, limited protections may apply to a small number of key , though most are left unprotected to ensure broad distribution. Draft order is established to promote competitive balance, commonly in reverse order of the previous season's standings, supplemented by lotteries, weighted draws, or random elements among non-playoff or lower-performing teams; the defunct team receives no selections. The process unfolds via a structured selection phase, where existing teams take turns picking one player per round in either a linear format (sequential order maintained) or snake format (order reverses each round), with each team capped at a predetermined number of selections—often 3 to 5—to prevent excessive roster accumulation. Selecting teams immediately assume the player's existing , including , bonuses, and any associated obligations, while trades are prohibited during the in most leagues to maintain order. Following the draft, unselected players become unrestricted free agents eligible to sign with any , and the league may implement relief or adjustments for acquiring teams to accommodate the added contracts. The entire procedure is typically expedited, occurring within weeks to a few months of the announcement to minimize disruption to the season.

Variations across leagues

In the (NBA), dispersal drafts have historically prioritized teams with poorer records to maintain competitive balance, as seen in the 1976 ABA dispersal draft following the league merger, where selection order followed the reverse standings from the previous season. Drafting teams were required to assume the full ABA contracts of selected players, converting them to NBA uniform player contracts without additional territorial pick considerations specific to dispersal scenarios. This approach emphasized equitable redistribution while honoring existing agreements, though modern NBA usage is rare due to league stability. The () integrates player distribution from relocations or potential foldings primarily through its waiver system rather than formal dispersal drafts. Upon team relocation, such as the to the in 1997, most players' contracts transfer with the franchise, but any releases trigger waivers where teams bid based on position in the waiver order, often favoring those with worse records. This method avoids full rosters entering a draft pool, focusing instead on individual player claims to minimize disruption. In the National Hockey League (NHL), dispersal drafts highlight contract status as a key eligibility factor, with only players under active contracts or restricted free agents eligible for selection, and international players treated equivalently without special exemptions. The 1978 dispersal draft after the Cleveland Barons' merger with the allowed the combined team to protect 10 skaters and two goaltenders, followed by a process in which the five lowest-finishing teams each selected one unprotected player, with the merged team able to protect additional players between selections, underscoring priority for struggling franchises. Such drafts have occasionally addressed lockout-related contractions or expansions, adapting protections to preserve core talent. Major League Baseball (MLB) rarely employs dispersal drafts, opting instead for franchise transfers during relocations like the Montreal Expos to the Washington Nationals in 2005, where arbitration-eligible players (those with 2-6 years of service) retained their contract rights and moved intact with the team. In hypothetical contraction scenarios, such as the aborted 2002 plans for the Expos and Twins, proposed rules would have used reverse order of standings for picks, with expansion teams receiving priority selections after other clubs claimed players, and protections extended to arbitration cases to safeguard mid-career talent. Major League Soccer (MLS) conducts dispersal drafts in a single-round format for disbanded teams, as in the 2014 Chivas USA draft, where order was determined by a weighted lottery favoring non-playoff teams from the prior season, and each club could select at most one player via private . Selected players' full 2015 budget charges and contract options must be assumed, with designated players potentially exempted if league-designated, as Erick Torres was unavailable for selection. Unselected players enter the re-entry process or waivers, reflecting MLS's smaller rosters and constraints. Across leagues, dispersal drafts have evolved to include greater protections for star players—such as expanded protected lists in the NHL and contract assumptions in the NBA and MLS—to mitigate talent dilution and preserve competitive parity, a shift evident since the mergers when full rosters were more commonly dispersed.

Examples in professional sports

Baseball

In , the closest instance to a dispersal draft occurred during the league's 2001 contraction plan, which targeted the for elimination due to ongoing financial losses and low attendance. The plan, approved by owners but blocked by a court , envisioned a dispersal draft to redistribute the Expos' (and ') players among the remaining 28 teams to preserve competitive balance and avoid a mass entry into free agency. Although contraction was averted and the Expos relocated to , in 2005 to become the , the proposed process influenced how player redistribution was handled through trades in the interim. The proposed draft would have followed reverse order of the previous season's standings, with the worst-performing teams selecting first to prioritize . Each surviving team would protect a limited number of players (details on exact protections were under with the players' ), making the rest eligible for selection. All undrafted players would become free agents, with owners responsible for obligations. Notable Expos players potentially available included pitcher Javier Vázquez and first baseman Nick Johnson, who instead transferred with the franchise to the Nationals and contributed to their early rosters—Johnson hit .289 with 10 home runs in 2005, while Vázquez was traded to the Yankees for prospects prior to . In lieu of a full draft, MLB enforced a $40 million cap on the Expos from 2002 to 2004, mandating trades of high-salary stars to generate revenue for the relocation and prevent financial collapse. This effectively dispersed talent league-wide, with deals like the July 2004 trade of Orlando Cabrera to the Boston Red Sox and outfielder Scott Podsednik to the . The strategy distributed key assets, such as Vázquez to the Yankees, helping balance the American and National Leagues by spreading star power and avoiding a free agency glut that could have depressed salaries. Expos assets, including prospects, were partially auctioned or traded separately to fund the transition. An earlier near-miss involved the in 1953, amid threats of relocation to or due to poor attendance and debts. Owners approved the franchise's move to (becoming ) instead, with the entire roster transferring intact—no formal dispersal occurred, though discussions of player redistribution surfaced during the uncertainty. Dispersal drafts remain uncommon at the MLB level due to franchise stability, with no major instances since the Expos saga; however, they occur in minor leagues when teams fold, such as the 2019 dispersal of the ' players in the Atlantic League.

Basketball

In the early years of the National Basketball Association (NBA), dispersal drafts were employed to redistribute players from defunct franchises, ensuring talent was allocated to existing teams amid financial instability. The 1950 dispersal draft following the folding of the exemplified this process; after the team disbanded due to after the 1949-50 season, a single-round draft was held on October 5, 1950, where remaining NBA teams selected from the Stags' roster in reverse order of the previous season's standings, with no player protections. Notable selections included , an All-NBA guard, taken first by the , and , a future Hall of Famer, chosen by the , which helped bolster competitive balance in a league still recovering from post-World War II economic challenges. A similar mechanism occurred in 1954 when the original Baltimore Bullets ceased operations 14 games into the 1954-55 season, prompting a dispersal draft on November 27, 1954, to reallocate their players and prevent talent concentration or loss. This limited-round draft prioritized teams based on reverse standings from the prior year, again without protections, allowing selections such as forward Bob Houbregs by the and guard Paul Hoffman by the , which redistributed key contributors to strengthen weaker franchises. These drafts were critical for the nascent NBA, as they distributed talent evenly to avoid market weaknesses and sustain league viability during an era of frequent contractions. By the mid-1950s, the NBA's growing stability—bolstered by television revenue and territorial expansions—diminished the need for such drafts in the , making them rare occurrences thereafter. While occasional dispersals appeared in or contexts like the 1976 ABA-NBA merger (often framed as an ), the early NBA examples underscored how these processes helped the league survive by preventing talent vacuums and fostering parity among teams.

American football

In American football, dispersal drafts have primarily occurred in the context of spring leagues and their mergers or collapses, rather than in the stable structure of the (). These processes allow surviving teams to protect key players while redistributing talent from defunct franchises to maintain competitive balance and prevent a mass exodus to the . Unlike standard drafts, dispersal mechanisms often resemble waivers combined with selective claims, prioritizing contract assumptions for high-value players such as quarterbacks and star performers to preserve team cores. A notable early example arose from the 1975 collapse of the (WFL), which folded midway through its second season due to financial insolvency. NFL Commissioner authorized a special player pool process, enabling NFL teams to sign former WFL players, with franchises like the and permitted to claim up to 12 each, while established teams could add up to two. This waiver-like system operated in reverse draft order, focusing on contract releases and assumptions, and distributed players such as running back back to the , though quarterback had already voided his WFL contract earlier that year to remain with the . The process helped integrate WFL talent into the without a full draft, bolstering rosters amid the league's . In the , the (USFL) provided another instance of player integration following its 1986 antitrust lawsuit against the , which the USFL won on grounds but received only nominal $3 in damages. The USFL folded shortly after, releasing players who then pursued opportunities as free agents or through negotiated releases, rather than a formal dispersal draft. High-profile stars like quarterback () and running back ( via trade) transitioned via these channels, often after USFL contracts were nullified, highlighting the lawsuit's role in forcing integration but underscoring the rarity of pure dispersal drafts in the NFL's stable ecosystem. More recently, the 2024 merger of the USFL and into the United Football League (UFL) featured a structured multi-phase dispersal to consolidate talent from eight predecessor teams into five continuing franchises. Each surviving team protected up to 42 players from its 2023 roster—emphasizing quarterbacks, offensive linemen, and defensive stars—before selecting up to 20 additional players in Phase 1 (January 5) from the unprotected rosters of non-continuing teams like the and , following a based on prior . A Phase 2 open dispersal on January 15 allowed further claims from the remaining pool, with contract assumptions prioritizing multi-year deals to retain viability. This waiver-style process, conducted in rounds, prevented talent dilution and ensured competitive rosters. The UFL merger's dispersal draft significantly enhanced league viability by merging talent pools, creating deeper rosters that produced an entertaining product and increased pipeline opportunities, with over 100 players signing contracts post-season. For instance, the retained their core, including quarterback Adrian Martinez, to win the inaugural UFL championship, demonstrating how protections safeguarded team identity and fan interest amid contraction.

Ice hockey

In , particularly within the National Hockey League (NHL), dispersal drafts have served as a mechanism to redistribute players from folded, merged, or relocated franchises, ensuring competitive balance and preventing talent hoarding. These events, though infrequent, typically occur in response to financial instability or structural changes, allowing existing teams to select from unprotected rosters in a structured process. The NHL's approach emphasizes limited selections to avoid excessive dilution while bolstering weaker clubs. The folding of the in 1938 provides an early example of player dispersal, albeit without a formal draft due to the league's nascent structure at the time. Crippled by financial woes during the , the Maroons suspended operations after the 1937–38 season, reducing the NHL to seven teams. Their players were made available for claims or sales to other franchises, with notable transfers including Hall of Famer Nels Stewart, who was sold to the and played 46 games for them in 1938–39, scoring 16 goals. Other key Maroons like goalie Wilf Cude and forward Jimmy Ward were acquired by teams such as the , helping to redistribute talent amid the league's contraction. A more formalized dispersal draft occurred in 1978 following the merger of the financially troubled Cleveland Barons with the Minnesota North Stars, shrinking the league from 18 to 17 teams. Approved by NHL governors on June 14, 1978, the merger protected 12 players for the combined franchise—10 skaters and two goaltenders, split evenly from each team's prior rosters. The remaining Barons players entered a single-round dispersal draft held the next day in Montreal, where the five lowest-finishing teams from 1977–78 (Washington Capitals, St. Louis Blues, Vancouver Canucks, Pittsburgh Penguins, and Colorado Rockies) selected in reverse order of standings. Each pick cost $30,000, and teams could opt for the Barons' amateur draft choices instead; the Capitals chose the Barons' first-round pick (18th overall in the 1978 NHL Entry Draft, used on Tim Coulis). Notable selections included right winger Mike Crombeen (3 goals, 4 assists in 48 games the prior season) by the Blues and defenseman Randy Holt by the Canucks, while the Penguins and Rockies passed. Goaltender Gilles Meloche, a holdover from the Barons' California Golden Seals era, was protected and anchored the North Stars' net for years, posting a 2.67 goals-against average in 1978–79. The Penguins and Rockies passed. This draft exemplified the NHL's process: reverse-order selection to favor struggling teams, limited rounds to preserve roster integrity, and fee-based acquisitions to offset costs. In later cases, such as the 1991 relocation of the to San Jose, dispersal elements were incorporated into an framework, where the new selected from a protected list of North Stars players before a broader draft stocked both the and a retained Minnesota franchise. While early drafts like 1938 and 1978 lacked specific provisions for international rosters, modern NHL processes have included considerations for players' contracts, ensuring compliance with international agreements during selections. These drafts have generally featured 1–3 rounds, with teams protecting 10–15 players based on position needs (e.g., one , five defensemen, and eight forwards in some iterations). Dispersal drafts have played a key role in preserving NHL , particularly during the league's from the Original Six in 1967 onward, by injecting talent into underperforming teams and mitigating the risks of . The event, for instance, helped the North Stars improve from 45 points in 1977–78 to 68 in 1978–79, culminating in a Final appearance in 1981. By redistributing assets like draft picks and players, these mechanisms supported league stability amid volatile ownership changes. Post-2000, such drafts have been rare, supplanted by revenue-sharing agreements and the introduced in the agreement, which have stabilized franchises and reduced the likelihood of foldings or mergers.

Soccer

In soccer, particularly in North American leagues like (MLS) and the (NWSL), dispersal drafts occur when a team folds or relocates, redistributing its players to maintain competitive balance. These drafts typically involve a single round where existing teams select players in a predetermined order, with options to pass on selections until all teams have passed or no eligible players remain. Selecting teams inherit the player's existing , including and any associated obligations, while homegrown talents—players developed within the club's academy—are often prioritized to preserve youth investments. Players not selected become free agents, and the process emphasizes fair distribution without expansion teams dominating selections. A notable example is the 2014 MLS Dispersal Draft following the folding of due to ownership instability. Held on November 19, 2014, the single-round draft featured a weighted lottery to determine selection order among the league's 19 teams plus expansion sides and , treated as non-playoff qualifiers. selected goalkeeper Dan Kennedy with the first overall pick, followed by taking defender Eric Miller, and the Montreal Impact choosing defender Donny Toia third overall. Seven players were ultimately selected, helping to balance talent across MLS amid the league's contraction challenges. In the NWSL, the 2018 Dispersal Draft addressed the Boston Breakers' cessation of operations, announced on January 28, 2018, due to failed ownership transitions. Conducted on January 30, 2018, after a weighted draw for order—using a snake format for subsequent rounds—the draft allowed teams to select from the Breakers' roster, with players able to opt out by January 29. Expansion team Utah Royals FC, picking fifth in the first round, selected goalkeeper Abby Smith, along with forward Katie Stengel (14th overall) and others in later rounds, bolstering their inaugural roster. Selections like these distributed key talent, including international players, to nine remaining teams without counting against 2018 roster limits. Pure dispersal drafts remain rare in soccer outside , where promotion-relegation systems and transfer markets typically handle team dissolutions. The 2020 MLS expansion for incorporated limited dispersal elements from unprotected lists, but it differed from full team foldouts. These mechanisms have supported MLS talent equilibrium during ownership crises and aided NWSL growth by reallocating players to sustain viability.

Other sports

Dispersal drafts have been employed in emerging professional leagues outside the major North American sports to redistribute talent following team withdrawals or folds, helping to maintain competitive balance in smaller-scale operations. In (MLR), the 2024 dispersal draft for the exemplified this approach after the franchise withdrew from the 2025 season due to insufficient investment. Held on September 25, 2024, the draft consisted of three rounds involving 22 unprotected players, with the 11 remaining MLR teams participating on a snake-draft basis; Hounds traded away their selections and passed on all picks. Notable selections included prop Sam Golla by Anthem RC in the first round, loosehead prop Dewald Kotze by the , and scrumhalf Evan Conlon by the in the second round, ensuring the players' rights were assigned without relief or exemptions for international roster spots. In minor professional leagues, dispersal drafts often incorporate relocation elements to integrate players into successor or existing teams while minimizing disruptions. For instance, in the (FPHL), the 2023 dispersal draft for the folded distributed 15 players across the remaining seven teams in a single-round format, with Baton Rouge selecting forward Danila Milushkin first overall and selecting forward Houston Wilson second. These processes are adapted to the sport's needs, frequently blending draft selections with auctions for select positions, and feature limited player protections—typically only one or two per team—owing to smaller rosters of 20-25 active players. Such mechanisms have been used in other minor hockey circuits, like the 2020 (USHL) dispersal following the temporary folding of the and , where players were reassigned to preserve development pathways. Internationally, dispersal drafts remain rare, as most football codes rely on free agency or transfer auctions upon club liquidation rather than structured drafts; however, the MLR case represents a modern adaptation in rugby, promoting league sustainability. By preventing talent from draining to rival competitions or overseas markets, these drafts in emerging sports bolster overall health, as seen in MLR where the Jackals' redistribution retained key domestic and international players within the North American ecosystem, supporting growth in a league with rosters averaging 38 players per team.

In fantasy sports

Overview

In fantasy sports, a dispersal draft serves as a key tool for league commissioners to redistribute players and draft picks from abandoned or orphaned teams among existing owners or new entrants, particularly in formats where rosters carry over across seasons. This process prevents the direct inheritance of potentially lopsided teams, allowing newcomers to construct balanced squads through a structured selection. By integrating both current assets and future draft picks into the pool, dispersal drafts promote equitable rebuilding and sustain overall league vitality. Such drafts are typically triggered by common issues like an owner quitting mid-season, extended inactivity that disrupts league balance, or deliberate contraction to streamline the roster count, with these scenarios arising most frequently in enduring setups such as dynasty fantasy football or leagues. The mechanism addresses these disruptions by pooling all relevant assets from the affected teams, enabling a fresh start that avoids favoritism and encourages continued participation. Dispersal drafts have gained prominence on user-friendly platforms like , which provide built-in tools to facilitate the process amid rising owner turnover. Their adoption has accelerated in the 2020s, paralleling the broader expansion of dynasty leagues that prioritize long-term strategy and player development over seasonal resets. Distinct from equivalents—inspired by events like the NHL's expansion and dispersal drafts, which involved the in the creation of the franchise—fantasy versions treat draft picks as tradable assets and often permit voluntary team dissolution for leavers seeking a reset.

Implementation

In fantasy sports leagues, dispersal drafts are typically conducted using formats that promote fairness and prevent collusion among participants. The snake format is commonly employed to ensure balanced of , where reverses each round to give later picks an advantage in subsequent selections. Auction formats are also utilized, allowing managers to bid on using a virtual budget, which helps assign value based on perceived worth and accommodates varying strategies. Randomizing the initial further mitigates risks of coordinated efforts to favor specific teams. Setup begins with the league compiling all assets from the orphaned team or teams into a central , including current rosters, picks, and any future selections. Placeholders, such as generic player entries or special designations, are often used for upcoming picks to facilitate their inclusion without disrupting the platform's structure. Limits on selections per team, such as capping new owners at a certain number of picks or requiring minimum roster sizes, are imposed to maintain league balance and prevent any single team from dominating the . Strategies during the draft emphasize valuing from orphaned teams based on established rankings and projections, prioritizing high-upside assets like young or early-round picks to build competitive rosters. Post-draft trades are actively encouraged to refine team compositions and address imbalances, as seen in football leagues where managers often exchange recent acquisitions for complementary pieces. In practice, commissioners may reference tools like spreadsheets to pre-rank the pool, guiding participants toward equitable outcomes. Popular platforms such as automate much of the process through tools, enabling the transfer of players to free-agent lists or mock draft boards for selection, while handling injured or reserve players by designating them separately in the pool to avoid undervaluation. These apps support both supplemental drafts for partial dispersals and full redrafts, streamlining logistics for s. Variations include full league dispersals, where all teams participate in redistributing assets from multiple orphans, versus partial dispersals limited to two teams for quicker resolution. New owners may also incorporate startup rules, such as protected players or bonus picks, to ease their integration and align with ongoing season dynamics. Challenges in center on avoiding tanking incentives, where managers might undervalue assets to weaken rivals, and ensuring in multi-orphan scenarios by adjusting pick allocations or using arbiters for disputes. Commissioners often mitigate these by enforcing transparent rules and leveraging to verify .

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