By Nicholas Yam
The National Basketball Association (NBA) passed a new Collective Bargaining Agreement (CBA) in 2011 that introduced many changes to the structure of the league. The purpose of those changes was to improve competitive balance among the league, allowing smaller market teams to better compete with larger market teams. Many of the changes targeted the league’s salary cap and teams’ ability to pay players. This paper aims to determine whether competitive balance in the NBA improved under the 2011 CBA. The paper also determines which types of players’ salaries were affected the most. The results showed that competitive balance did not improve under the 2011 CBA. However, the results showed that higher performing players were paid proportionally more money than lower performing players following 2011 CBA.
Advisor: Peter Arcidiacon | JEL Codes: Z2, Z20, Z22