Oscar Robertson, Antitrust, and the Fight Against Monopsony Power in the NBA

Abstract

Labor markets in sports have historically been dominated by the monopsony power enjoyed by owners. In the 1970s, Oscar Robertson argued in front of Congress that “…it’s terribly wrong for anyone to limit anyone’s ability to earn more money.” The data make it clear that Robertson’s wages—and the wages of other National Basketball Association (NBA) players—were indeed limited by the NBA’s reserve clause. Robertson, though, didn’t just make speeches. As the head of the NBA’s Player Association, he delayed a merger between the American Basketball Association and NBA and eventually created the NBA’s free agent market. His work dramatically increased the wages paid to NBA players. These victories, though, didn’t last forever. The many limits today on player wages in the NBA’s labor market suggest that Robertson’s fight has largely been forgotten by today’s NBA players.