The first instance of a Japanese-born player playing in Major League Baseball was in 1964, when the Nankai Hawks, an NPB team, sent three exchange prospects to the United States to gain experience in MLB's minor league system. One of the players, pitcher Masanori Murakami, was named the California League Rookie of the Year while playing for the Fresno Giants (the San Francisco Giants' Class-A team). Giants executives were impressed with this talent and on September 1, 1964 Murakami was promoted, thus becoming the first Japanese player to play in MLB.[2] After Murakami put up good pitching statistics as a reliever, Giants executives sought to exercise a clause in their contract with the Hawks that, they claimed, allowed them to buy up an exchange prospect's contract. NPB officials objected, stating that they had no intention of selling Murakami's contract to the Giants and telling them that Murakami was merely on loan for the 1964 season. After a two-month stalemate the Giants eventually agreed to send Murakami back to the Hawks after the 1965 season. Thus, after pitching one more season for the Giants, Murakami returned to Japan to play for the Hawks. This affair led to the 1967 United States – Japanese Player Contract Agreement, also known as the "Working Agreement", between MLB and NPB, which was basically a hands-off policy.[3][4]
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A Japanese man wearing a Devil Ray baseball uniform points his arms upward as he prepares to pitch in the bullpen.
The second Japanese-born player to play in MLB, Hideo Nomo used a loophole to void his NPB contract.

MLB and NPB officials created the posting system as a combined reaction to three cases in the 1990s, involving NPB players who moved to MLB. The first of these occurred in the winter of 1994 when pitcher Hideo Nomo, with the help of agent Don Nomura, became the second Japanese-born player to play in MLB, 30 years after Murakami. Nomo, who was not yet eligible for free agency in Japan, was advised by Nomura that a "voluntary retirement" clause in the Working Agreement did not specify that a player wishing to play again after retiring must return to NPB. Nomo utilized this loophole to void his NPB contract with the Kintetsu Buffaloes and play in MLB. He announced his retirement from NPB in late 1994 and signed with the Los Angeles Dodgers in February 1995, where he won the National League Rookie of the Year award.[5] The following year, the Dodgers signed Nomo to a three-year, $4.3 million contract.[6]internet merchant accounts
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