The NBA’s “One-and-Done” Rule: Procompetitive Justifications and Anticompetitive Effects

Abstract

In 2005, the National Basketball Association (NBA) implemented a rule prohibiting players from entering the League directly after high school. To be eligible to join the NBA, players need to meet two conditions: (1) at least one year must have elapsed since they graduated high school, and (2) they must be 19 years old or must turn 19 the year they enter.1 This rule,2 often termed the “One-and-Done” Rule, was first enacted in advance of the 2006 NBA draft. The most talented high school athletes tend to compete in National Collegiate Athletic Association (NCAA) basketball until they are eligible to play professionally, although a few alternative options do exist. To fully understand the anticompetitive and procompetitive effects of the One-and-Done Rule, this Article will examine the justifications and consequences of the rule under a fullrule- of-reason approach that courts may take if the legality of the rule were to be litigated.3 The following analysis demonstrates that, on balance, the rule has salient anticompetitive effects on the market for talented young basketball players, and may violate antitrust laws.