competitve balnce in the NBA

The competitive balance in the NBA is an essential part of the uncertainty of outcome that constitutes a functioning league and cartel. The NBA has three mechanisms to maintain competitive balance and they are a soft salary cap, League wide sharing of revenues among teams and a two round player draft (Hwang 6). Even thou the NBA utilizes all of these mechanisms it has the worst competitive balance out of the four professional leagues.
The competitive balance is supported by a pool of players that are drafted from the labor market. In a typical situation a player that has a very high amount of skill will get the highest spot in the draft therefore getting a higher salary. In order to make the league competitive there are systems in place that require a draft, player contracts, free agency and trad...