COMMENT: THE NBA SALARY CAP: CONTROLLING LABOR COSTS THROUGH COLLECTIVE BARGAINING Skip over navigation
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Copyright (c) 1994 The Catholic University Law Review
Catholic University Law Review

COMMENT: THE NBA SALARY CAP: CONTROLLING LABOR COSTS THROUGH COLLECTIVE BARGAINING

Fall, 1994

Catholic University Law Review

44 Cath. U.L. Rev. 205

Author

Jonathan C. Latimer

Excerpt



The economic viability of the National Basketball Association (NBA) is dependent upon maintaining fan interest, which, in turn, creates revenue through attendance at games and by selling broadcast rights to television networks and cable stations. 1 In 1983, the NBA and the National Basketball Players Association (NBPA) agreed to limit the aggregate amount each team in the league may spend annually on player salaries. 2 The parties created the salary cap 3 in response to the declining revenues of some teams and to enhance the competitive balance among teams. 4

Recognizing the need for economic stability, the players agreed to the salary cap despite its negative effects on salaries, player movement, and free agency. 5 The NBA negotiated the terms of the salary cap with the NBPA, acting as the bargaining agent for the players, and the parties subsequently added the salary cap provision to the 1980 collective bargaining agreement. 6 However, the collective bargaining agreement negotiated between the NBA and the NBPA expired at the conclusion of the 1993-94 season. 7 Therefore, it is uncertain if the salary cap, or other labor provisions, will be included in future agreements. 8

Labor issues in the NBA have been the subject of collective bargaining since the judicial determination of Robertson v. NBA. 9 In Robertson, NBA players filed a class action suit alleging that various NBA labor practices violated antitrust laws. 10 The United States District Court for the Southern District of New ...
 
 
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