Salary cap
A salary cap is a financial regulation used in professional sports leagues that limits the total amount of money a team can spend on player salaries in a given season. This system promotes competitive balance by preventing wealthier teams from accumulating all the top talent, ensuring that all teams have a fair chance to improve and succeed. The salary cap may vary by league and can be set through negotiations between team owners and players' unions. It helps maintain the viability of smaller market teams and contributes to a more balanced and exciting competition.
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A salary cap is a limit set on the total amount of money a sports team can spend on player salaries in a given season. This rule is designed to promote fairness and competitive balance among teams, preventing wealthier teams from hoarding all the top talent. In leagues with a salary cap, teams must strategically manage their budgets to assemble a competitive roster while adhering to the cap. It encourages player movement and creates opportunities for less wealthy teams to succeed. Typically, the salary cap can vary by league and may be influenced by factors like overall league revenue.