A fishing reel including a housing having a central hub and a main shaft having a proximal end and a distal end, the main shaft being non-rotatably fixed to the central hub at its proximal end. A spool having a central recess is releasably secured to the main shaft distal end and a one-way clutch having a central bore is non-rotatably received in the central recess. The reel also includes a drag assembly with a drag housing having a drag surface and a central aperture, the drag housing being fixed to the central hub of the housing such that a drag cavity is formed therebetween. A sleeve extends along the main shaft and has a first portion received in the central bore of the one-way clutch and a second portion extending into the drag cavity. A first drag washer is disposed in the drag cavity and non-rotatably fixed to the second portion of the sleeve and a drag knob is rotatably secured to the housing. Rotation of the drag knob in a first direction urges the drag washer axially along the sleeve toward the drag surface and increases rotational frictional force on the first drag washer. Rotation of the drag knob in a second direction reduces rotational frictional force exerted on said first drag washer.