Last year the NBA instituted a dress code for its players. There was a lot of howling that the league had no right to do this, but then it was pointed out that the current collective bargaining agreement indeed gives the league the right to institute a dress code. For those who didn't read the CBA before signing on, they have no one to blame but themselves.

An immediate outcome of the dress code was that several players received new endorsement contracts with men's fashion companies, many of which did not have endorsement contracts with basketball players before. While some players likely lost contracts with other companies, at least some players seemed to be made better off after the dress code. Why the players did not/could not obtain such endorsement contracts without the dress code is not clear.

However, the NBA as a league is a fairly well organized cartel and seems to be doing exactly what a cartel is expected to do - enhance and protect the profitability of its member firms. The dress code has evidently allowed the NBA the cover to launch an upscale men's fashion line:

The collection will be available later this spring. Initial product offerings include wool and leather blazers at $348 and $648, respectively, that feature NBA and team logo embroidery on the inside lining. Dress shirts will go for $87.50 to $89.50, and woven silk ties will retail for $39.50.

Now, I am not sure if there is a fashion foul if you work on Wall Street and wear an NBA team logo blazer. However, I am willing to bet that without the dress code the $650 leather blazer with NBA logo on the inside wouldn't be a big hit. How clever of the NBA to create a market for high end men's fashion. Just what cartels are supposed to do - find joint profit maximizing solutions that are not possible when all cartel members act individually.

While the NBA faces challenges, at least in certain areas the NBA qua cartel seems to be doing just fine, thank you very much.