salary cap

Team spending limit

A salary cap is a limit on the total amount a sports team can spend on player salaries, designed to promote competitive balance by preventing wealthy franchises from stockpiling talent.

Most major professional leagues impose some form of cap, though the rules vary widely—some are "hard" caps with strict limits, others are "soft" with exceptions and luxury taxes for exceeding thresholds.

The team had to trade their star player to get under the salary cap.

Related

compensation · income · draft system · revenue sharing · earnings · wage · limitation · commissioner · dynasty · remuneration · restriction · pay equity · competitive balance · trade deadline · payment · regulation · franchise · negotiate

Categories
Opposites
spending limits

salary capluxury tax

Tariff on high-end goods

soft cap

economic philosophy

salary capfree market

Commerce without state intervention

laissez-faire economics

spending restriction vs. spending freedom

salary capfree spending

open market

Family

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