Under a reserve clause structure the wage paid to a professional athlete is likely to be close to his

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The reserve clause structure in professional sports limits an athlete's ability to negotiate with other teams, effectively binding the athlete to their current team unless traded or released. This reduces the athlete's bargaining power, likely resulting in a wage that is closer to their reservation wage (the minimum wage at which they are willing to work) rather than their marginal revenue product (the additional revenue generated by their performance).

Under a Reserve Clause Structure the Wage Paid to a Professional