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Abstract

The NBA Collective Bargaining Agreement (CBA) of 2005 instituted an age restriction upon entrants of the league's amateur draft, The majority of America's top high school prospects are now required to spend one year playing basketball at the NCAA level. This salary determination study is the first to examine professional athletes' rookie salary as a function of the university they attended. An ordinary least squared regression model is used as the estimating procedure to identify the determinants of draft order and salary among NBA rookies. University choice is examined along with other variables, including player performance, height and race. Results indicate that an athlete's university choice - independent of the other variables in the study - does significantly influence his professional salary.

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