cap hit

A cap hit is the average annual amount a sports team charges against its salary cap for a player’s contract. It spreads out the total value of the contract over its duration, reflecting the yearly financial commitment. This helps teams manage their overall payroll and stay within league salary limits. For example, if a player signs a $10 million, five-year contract, the cap hit might be $2 million per year, even if the player earns more in some years due to bonuses. The cap hit provides a consistent measure of a player’s impact on the team’s salary budget each season.