This paper proposes that the National Basketball Association (NBA) adopt a salary arbitration system in specifically defined circumstances—for restricted free agents who either last played under a four-year rookie salary scale contract, or last played under a two-year or three-year contract as a second-round draft pick or undrafted free agent. Part I of this paper summarizes the use of salary arbitration in professional sport leagues. Part II of this paper provides an overview of the current arbitration procedures in the NBA. Part III of the paper outlines a proposed new NBA salary arbitration model. Part IV discusses some of the problems associated with the NBA’s current restricted free agency and qualifying offer rules and explains how the

proposed salary arbitration system would alleviate these problems. Part V provides a case study illustrating a potential trend in the NBA that supports the overall goals of the salary arbitration framework proposed in this paper. Part VI analyzes Major League Baseball’s (MLB) salary arbitration process and how the proposed salary arbitration model for the NBA incorporates best practices from MLB. Part VII analyzes the National Hockey League’s (NHL) salary arbitration process and how the proposed salary arbitration model for the NBA incorporates best practices from the National Hockey League. Part VIII details some of the potential practical drawbacks and limitations associated with the proposed NBA salary arbitration model. The paper concludes with a recap of the potential positive impact of implementing the proposed NBA salary arbitration framework.