A Unicorn No More? The No-Trade Clause and its Potential to Reshape NBA Contractual Negotiations
Paul Gerstle | 27 Vand. J. Ent. & Tech. L. 523 (2025)
The no-trade clause, which, in the simplest of terms, allows a player to block his organization from trading him, is somewhat of a unicorn in NBA contractual circles. It has been sparsely used in the National Basketball Association (NBA) history, and there are certainly some good reasons for this. Allowing a player to control his fate without any potential for a trade puts his team in a straitjacket. Thus, teams have long kept their distance from the no-trade clause, with only ten players in NBA history having a no-trade clause in their contract. Most of these players have been legends within their respective organizations: long-tenured players who simply wish to one day retire with the teams on which they have spent the majority of their careers.
As the average salary of an NBA player has ballooned over the past few years, teams have been forced to give maximum contracts to retain their best talent, regardless of whether that player is deserving of a maximum contract. This has led to a newfound loyalty problem: with maximum contracts becoming more and more the norm, what can teams offer their franchise player(s) that will incentivize them to stay if they can get a maximum contract anywhere? The answer is the no-trade clause, which gives players a unique contractual provision that they cannot get on other teams. The aforementioned problems that are associated with the no-trade clause remain, but certain teams would be wise to consider exercising this option for young players whom they see as franchise figureheads for years to come. This Note investigates the history of the no-trade clause in the NBA, its use in other sports leagues, and the potential implications of its expanded use moving forward. This Note argues for the no-trade clause to be entrenched as a more common contractual provision, serving as an additional tool for both teams and players alike to consider when at the negotiating table. As a part of this solution, this Note advocates for changes to the NBA Collective Bargaining Agreement that will give teams more flexibility in choosing to whom they wish to give no-trade clauses. Should these changes be made, this Note identifies the player archetype to which teams should consider giving no-trade clauses.