I guess the "pool" thing was the result of the 1981 settlement. (Seaver was lost to the Sox after the 1983 season, so it wouldn't have been from the 1985 settlement.)
My memory (apparently wrong) was that the big fuss in the 1981 strike was that the owners wanted to introduce compensation as a way of reining in free agency at least a little, and the players were, naturally, opposed to that. The "pool" idea came about as a compromise; the team that loses a player gets compensation, but there's no penalty to the team that signs the player.
Thinking more about it, I guess the 1981 settlement was the one that abolished the "re-entry" draft. Remember that? A draft would be held that determined which teams could bid on which free agents. I remember getting all excited when the Mets "drafted" Reggie Jackson. Of course, they had no intention of ever talking to him. (Like there was any chance at all that the de Roulet Mets would sign a Reggie Jackson.)
EDIT: Frayed Knot's post snuck in there while I was composing the above. If it looks like I didn't read his post, it's because I didn't!
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