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Salary Caps And Competitive Balance In The Nba, Cody Couture
Salary Caps And Competitive Balance In The Nba, Cody Couture
Economics Student Theses and Capstone Projects
Following the 1998-99 NBA lockout, the league instituted a new collective bargaining agreement (CBA) that, among other things, set a cap on individual player salaries for the first time in a professional sports league. This paper examines how these changes affected competitive balance within the league. I find that, contrary to previous results, the 1999 CBA had no effect on parity within the NBA. Furthermore, I find evidence that as the NBA has opened its doors to international players, competition within the league has become more balanced.