Federal Trade Commission Proposes New Rule That Could Drastically Reshape Wrestling Free Agency
If the Federal Trade Commission has its way, professional wrestling may need to make some major changes. On Thursday, the FTC proposed a rule that would limit an employer's ability to stop their employee from working for a rival or competitor, benefitting workers and certainly creating an extra layer of intrigue for fans of the top wrestling promotions.
The rule takes aim at non-compete clauses and provisions, outright banning them. As for how this connects to wrestling, "The proposal covers not just employees but independent contractors, interns, volunteers, and other workers," per The New York Times. Wrestlers have long been classified as independent contractors, and those who have signed deals with WWE and AEW, in particular, have been limited in their movements in the industry due to those clauses once their time with a promotion came to an end.
"Noncompetes block workers from freely switching jobs, depriving them of higher wages and better working conditions, and depriving businesses of a talent pool that they need to build and expand," added FTC agency chair Lina Khan. "By ending this practice, the FTC's proposed rule would promote greater dynamism, innovation, and healthy competition."
90-day non-competes have been a staple of contracts for members of the WWE main roster. For those under "NXT" or developmental contracts, their clauses typically cover 30 days. However, with the removal of non-compete agreements from the equation, talent could conceivably show up in another promotion or on another wrestling show immediately if they were released or chose to let their contracts expire. For example, someone like Mandy Rose would have the ability to appear for AEW after being released by WWE with zero wait whatsoever. This also benefits the fans who no longer have to wait extended periods of time for some of their favorite wrestlers to resurface.