Phillies general manager Pat Gillick, who previously built winners in Toronto, Baltimore, and Seattle, is no fan of blanket no-trade clauses. Gillick is so averse to giving out complete no-trade provisions that he says it could be a “deal breaker” when the Phillies negotiate with big free agents this winter.

Provide an example of private information that a baseball player who wants a no-trade clause possesses. Does a baseball player with a long-term contract that includes a no-trade clause present a moral hazard to his baseball team?

Does a baseball player with a long-term contract that includes a no-trade clause present adverse selection problems to his baseball team?