Again, I disagree with this standard “free market” idiom, as it purposefully ignores one of the essential bases of a functioning “free market”: the binding nature of contracts. Everyone seems to skip over this part of the present problem.
A “free market” is only “free” when the parties have faith there is an ability to enforce mutual agreements; otherwise, we merely exist in some Hobbsean state of nature: i.e., “we should keep our covenants (so long as there is a common power to enforce them).”
The present system is cresting toward acceptability of unilateral breach of contracts, by those with so much money contract terms (and liquidated damages provisions) are meaningless to enforce the spirit of the agreement.
As in criminal law, we are moving toward the place where if you have enough money, you can get out of any liability.
Even the “free market” breaks down when contracts are meaningless.
Of course, all of this presumes that a “free market” is the point of the system, which it isn’t. The NFL, just for one example, operates under a strict collective bargaining agreement. It is not a “free market.” College athletics are strictly regulated as to movement of athletes, but not as to coaches.
Amazingly, there may be a simple solution to this lack of oversight or rules re movement of coaches, which derives from the essence of contract law (and was mentioned by RG): stop the accepted “norm” of granting other schools permission to talk to your coach about other jobs.
Absent that waiver, such conduct can be considered “tortious interference,” subject to actual, substantial damages.
If you truly desire a “free market,” people should be held to the obligations they are “free” to choose to enter into.
The lawyers have worked pretty hard to make these contracts essentially hollow. It's "at will" employment with a buyout.
Maybe if you had to go to court to get out of your contact to work for someone else this wouldnt happen.