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professional sports In professional sports, as opposed to amateur sports, participants receive payment for their performance. Professionalism in sport has come to the fore through a combination of developments. Mass media and increased leisure have brought l ...
, a salary cap (or wage cap) is an agreement or rule that places a limit on the amount of money that a team can spend on players' salaries. It exists as a per-player limit or a total limit for the team's roster, or both. Several sports leagues have implemented salary caps, using them to keep overall costs down, and also to maintain a competitive balance by restricting richer clubs from entrenching dominance by signing many more top players than their rivals. Salary caps can be a major issue in negotiations between league management and players' unions because they limit players' and teams' ability to negotiate higher salaries even if a team is operating at significant profits, and have been the focal point of several strikes by players and lockouts by owners and administrators.


Adoption

Salary caps are used by the following major sports leagues around the world: * North America ** The
National Basketball Association The National Basketball Association (NBA) is a professional basketball sports league, league in North America. The league is composed of 30 teams (29 in the United States and 1 in Canada) and is one of the major professional sports leagues i ...
,
National Football League The National Football League (NFL) is a professional American football league that consists of 32 teams, divided equally between the American Football Conference (AFC) and the National Football Conference (NFC). The NFL is one of the majo ...
,
National Hockey League The National Hockey League (NHL; french: Ligue nationale de hockey—LNH, ) is a professional ice hockey sports league, league in North America comprising 32 teams—25 in the United States and 7 in Canada. It is considered to be the top ranke ...
,
Major League Soccer Major League Soccer (MLS) is a men's professional soccer league sanctioned by the United States Soccer Federation, which represents the sport's highest level in the United States. The league comprises 29 teams—26 in the U.S. and 3 in Cana ...
,
Major League Rugby Major League Rugby (MLR or USMLR) is a professional rugby union competition and the top-level championship for clubs in North America. In the 2022 season it was contested by thirteen teams: twelve from the United States and one from Canada. Off ...
, North American Rugby League,
Canadian Football League The Canadian Football League (CFL; french: Ligue canadienne de football—LCF) is a professional sports league in Canada. The CFL is the highest level of competition in Canadian football. The league consists of nine teams, each located in a c ...
,
National Lacrosse League The National Lacrosse League (NLL) is a men's professional box lacrosse league in North America. The league is headquartered in Philadelphia, Pennsylvania, Philadelphia, Pennsylvania. The NLL currently has fifteen teams: ten in the United Stat ...
,
Women's National Basketball Association The Women's National Basketball Association (WNBA) is an American professional basketball league. It is composed of twelve teams, all based in the United States. The league was founded on April 22, 1996, as the women's counterpart to the Nati ...
,
National Women's Soccer League The National Women's Soccer League (NWSL) is a professional women's soccer league at the top of the United States league system. It is owned by the teams and, until 2020, was under a management contract with the United States Soccer Federati ...
,
Premier Hockey Federation The Premier Hockey Federation (PHF), formerly the National Women's Hockey League (NWHL), is a women's professional ice hockey league located in the United States and Canada. The league was established in 2015 with four league-owned teams and h ...
, and
minor league Minor leagues are professional sports leagues which are not regarded as the premier leagues in those sports. Minor league teams tend to play in smaller, less elaborate venues, often competing in smaller cities/markets. This term is used in No ...
s in various sports. ** The
National Basketball Association The National Basketball Association (NBA) is a professional basketball sports league, league in North America. The league is composed of 30 teams (29 in the United States and 1 in Canada) and is one of the major professional sports leagues i ...
uses a soft cap plus luxury tax system, while
Major League Baseball Major League Baseball (MLB) is a professional baseball organization and the oldest major professional sports league in the world. MLB is composed of 30 total teams, divided equally between the National League (NL) and the American League (A ...
has no salary cap and instead implements a luxury tax only (see below). *
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
: ** In
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
, the top-level leagues in both
rugby Rugby may refer to: Sport * Rugby football in many forms: ** Rugby league: 13 players per side *** Masters Rugby League *** Mod league *** Rugby league nines *** Rugby league sevens *** Touch (sport) *** Wheelchair rugby league ** Rugby union: 1 ...
codes—the Gallagher Premiership in
rugby union Rugby union, commonly known simply as rugby, is a close-contact team sport that originated at Rugby School in the first half of the 19th century. One of the two codes of rugby football, it is based on running with the ball in hand. In it ...
and the
Super League The Super League (officially known as the Betfred Super League due to sponsorship from Betfred and legally known as Super League Europe), is the top-level of the British rugby league system. At present the league consists of twelve teams, of w ...
in
rugby league Rugby league football, commonly known as just rugby league and sometimes football, footy, rugby or league, is a full-contact sport played by two teams of thirteen players on a rectangular field measuring 68 metres (75 yards) wide and 112 ...
—have salary caps. ** The four
Welsh Welsh may refer to: Related to Wales * Welsh, referring or related to Wales * Welsh language, a Brittonic Celtic language spoken in Wales * Welsh people People * Welsh (surname) * Sometimes used as a synonym for the ancient Britons (Celtic peopl ...
regional sides in the rugby union competition now known as the United Rugby Championship unilaterally adopted a salary cap effective with the 2012–13 season. *
Australia Australia, officially the Commonwealth of Australia, is a sovereign country comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands. With an area of , Australia is the largest country by ...
and
New Zealand New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...
: Most major leagues operating in the two countries have salary cap provisions: ** The
Australian Football League The Australian Football League (AFL) is the only fully professional sports, professional competition of Australian rules football. Through the AFL Commission, the AFL also serves as the sport's governing body and is responsible for controlling ...
(Australian rules football), which operates only in Australia. The
AFL Women's AFL Women's (AFLW) is Australia's national semi-professional Australian rules football in Australia, Australian rules football league for women's Australian rules football, female players. The 2017 AFL Women's season, first season of the league ...
league, operated by the (men's) AFL, is also capped. ** The
National Rugby League The National Rugby League (NRL) is an Australasian rugby league club competition which contains clubs from New South Wales, Queensland, Victoria, the Australian Capital Territory and New Zealand. The NRL formed in 1998 as a joint partnership ...
(rugby league),
A-League Men A-League Men (known as the Isuzu UTE A-League for sponsorship reasons) is the highest-level professional men's soccer league in Australia and New Zealand. At the top of the Australian league system, it is the country's premier men's competi ...
(association football) and National Basketball League, each of which is based in Australia but has one team in New Zealand. ** The countries' national netball leagues—
Suncorp Super Netball Suncorp Super Netball is the top level netball league featuring teams from Australia. In 2017 it replaced the ANZ Championship, which also included teams from New Zealand, as the top level netball league in Australia. Since 2019, the league has ...
in Australia and the ANZ Premiership in New Zealand—are capped. The trans-Tasman predecessor to both leagues, the ANZ Championship, was also capped. ** In rugby union, New Zealand's top domestic competition, the National Provincial Championship, is capped. In addition, the Australian teams in the
Super Rugby Super Rugby is a men's professional rugby union club competition involving teams from Australia, Fiji, New Zealand, and the Pacific Islands. It previously included teams from Argentina, Japan, and South Africa. Building on various Southern Hem ...
competition operate under a unilaterally adopted cap. New Zealand's Super Rugby sides are not subject to a team cap, but are subject to caps and floors on individual player salaries. During the period in which Argentine, Japanese, and South African sides participated in Super Rugby, teams from those countries were not subject to caps, but South Africa did have caps and floors on individual player salaries. It is unknown at present what limits South African sides are subject to in the United Rugby Championship. *
Eurasia Eurasia (, ) is the largest continental area on Earth, comprising all of Europe and Asia. Primarily in the Northern and Eastern Hemispheres, it spans from the British Isles and the Iberian Peninsula in the west to the Japanese archipelag ...
: The
Kontinental Hockey League The Kontinental Hockey League (KHL; russian: Континентальная хоккейная лига (КХЛ), Kontinental'naya khokkeynaya liga) is an international professional ice hockey league founded in 2008. It comprises member clubs ba ...
, based in
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
and also including teams in
Belarus Belarus,, , ; alternatively and formerly known as Byelorussia (from Russian ). officially the Republic of Belarus,; rus, Республика Беларусь, Respublika Belarus. is a landlocked country in Eastern Europe. It is bordered by ...
,
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
,
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bot ...
,
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
, and
Latvia Latvia ( or ; lv, Latvija ; ltg, Latveja; liv, Leţmō), officially the Republic of Latvia ( lv, Latvijas Republika, links=no, ltg, Latvejas Republika, links=no, liv, Leţmō Vabāmō, links=no), is a country in the Baltic region of ...
, has operated with a salary cap since its creation in 2008. *
France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
: The country's top-level rugby union league,
Top 14 The Top 14 () is a professional rugby union club competition that is played in France. Created in 1892, the Top 14 is at the top of the national league system operated by the French National Rugby League, also known by its French initialism o ...
, instituted a salary cap effective with the 2010–11 season. *
Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an are ...
: The
Chinese Super League The Chinese Football Association Super League, commonly known as Chinese Super League or CSL, currently known as the China Ping An Chinese Football Association Super League for sponsorship reasons, is the highest tier of professional football in ...
in association football instituted a salary cap effective with its 2021 season. Recently, several European
association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 players who primarily use their feet to propel the ball around a rectangular field called a pitch. The objective of the game is ...
leagues have also discussed introducing salary caps. The Union of European Football Associations introduced a set of Financial Fair Play Regulations in 2011, which limits football clubs' spending relative to their income.


Benefits

In theory, there are two main benefits derived from salary caps – promotion of parity between teams, and control of costs. Primarily, an effective salary cap prevents wealthy teams from certain destructive behaviours such as signing a multitude of high-paid star players to prevent their rivals from accessing these players, and ensuring victory through superior economic power. With a salary cap, each club has roughly the same economic power to attract players. This results in roughly equal playing talent in each team in the league, and in turn brings economic benefits to the league and to its individual teams. Leagues need to ensure a degree of parity between teams so that games are exciting for the fans and not a foregone conclusion. The leagues that have adopted salary caps generally believe letting richer teams accumulate talent affects the quality of the sporting product they want to sell: if only one or a handful of dominant teams are able to win consistently and challenge for the championship, many of the contests will be blowouts by the superior team, reducing the sport's attractiveness for fans at the stadium and viewers on television. Television revenue is an important part of the income of many sports around the world. The more evenly matched and exciting the contests, the more interesting the television product, and the higher the value of the television broadcast rights. An unbalanced league will also threaten the financial viability of the weaker teams: if there is no long-term hope of their team ever winning, fans of the weaker clubs will gravitate to other sports and leagues. One famous example of this occurring was in the
Union Association The Union Association was a league in Major League Baseball which lasted for just the 1884 season. St. Louis won the pennant and joined the National League the following season. Seven of the twelve teams who were in the Association at some poi ...
, a baseball league that operated in 1884. The Association was dominated by the St. Louis Maroons, whose owner, Henry Lucas, was also league president (an obvious conflict-of-interest situation which is now banned), and bought all the best players for his own franchise, leaving the Maroons to easily win the pennant with a record of 94–19 (.832 winning percentage), 21 games ahead of their nearest rivals. The league folded at the end of the season. Another famous example is the
All-America Football Conference The All-America Football Conference (AAFC) was a professional American football league that challenged the established National Football League (NFL) from 1946 to 1949. One of the NFL's most formidable challengers, the AAFC attracted many of the ...
, which operated between 1946 and 1949. Despite starring many top players and innovative coaches, the AAFC was dominated by one team, the
Cleveland Browns The Cleveland Browns are a professional American football team based in Cleveland. Named after original coach and co-founder Paul Brown, they compete in the National Football League (NFL) as a member club of the American Football Conferenc ...
, who lost only three games in four years and won every championship in the league's four-year existence, being unbeaten in 1948, and winning three of the championships in blowouts. This resulted in a consistent fall in attendance and heavy losses after the league's second season, for the Browns as well as their rivals, and the league folded at the end of 1949. The need for parity is more pronounced in leagues that use the franchise system rather than the
promotion and relegation In sports leagues, promotion and relegation is a process where teams are transferred between multiple divisions based on their performance for the completed season. Leagues that use promotion and relegation systems are often called open leagues ...
system, which is used in
European football UEFA competitions (french: competitions de l'UEFA), referred improperly by the mass media as European football, are the set of tournaments organised by the Union of European Football Associations (UEFA), generally in professional and amateur asso ...
. The structure of a promotion and relegation system means weaker teams struggle against the threat of relegation, adding importance and excitement to the matches of weaker teams. International club competitions such as the
UEFA Champions League The UEFA Champions League (abbreviated as UCL, or sometimes, UEFA CL) is an annual club football competition organised by the Union of European Football Associations (UEFA) and contested by top-division European clubs, deciding the competi ...
also means that the top clubs always have something to play for, even in the most unbalanced of national leagues. A salary cap can also help to control the costs of teams, and prevent situations in which a club will sign high-cost contracts for star players in order to reap the benefits of immediate popularity and success, only to later find themselves in financial difficulty because of these costs. Without caps, there is a risk that teams will overspend in order to win now at the expense of long term stability. Team owners who use the same risk-benefit analysis used in business may risk not just the fortunes of their own team, but the reputation and viability of the whole league. Sports fans are generally looking to support a team for life, not just a product to purchase for the short term. If teams regularly go bankrupt or change markets the same way businesses do, then the whole sport looks unstable to the fans, who may lose interest and switch their support to a more stable sport where their team and their rivals are more likely to be playing in the long term.


Hard cap, soft cap and salary floor

A salary cap can be defined as a ''hard'' cap or a ''soft'' cap. A hard cap represents a maximum amount that may not be exceeded for any reason. Contracts which cause a team to violate a hard cap are subject to major sanctions, including the voiding of violating contracts, and the stripping of championships won while breaching salary cap rules, which happened to the Melbourne Storm in the NRL. Hard caps are designed so that penalties deter breaking the cap, but there are numerous examples of clubs who have occasionally and/or systematically cheated the cap. A soft cap represents an amount which may be exceeded in limited circumstances, but otherwise exceeding the cap will trigger a penalty which is known in advance. Typically these penalties are financial in nature; fines or a luxury tax are common penalties used by leagues. A salary floor is a minimum amount that must be spent on the team as a whole, and this is separate from the minimum player salary that is agreed to by the league. Some leagues, in particular the NFL, have a ''hard'' salary floor that requires teams to meet the salary floor every year, which helps prevent teams from using the salary cap to minimize costs. This also ensures that money from revenue sharing is used for player salaries instead of being pocketed by owners. When the salary cap and floor are the same, the result is a standard form contract model of payment, in which each player is paid the same amount, sometimes varying by position. The standard form contract model is used extensively in North American
minor league Minor leagues are professional sports leagues which are not regarded as the premier leagues in those sports. Minor league teams tend to play in smaller, less elaborate venues, often competing in smaller cities/markets. This term is used in No ...
s.


Reserve clause

Before the implementation of salary caps, the economic influence of clubs on player markets was controlled by the
reserve clause The reserve clause, in North American professional sports, was part of a player contract which stated that the rights to players were retained by the team upon the contract's expiration. Players under these contracts were not free to enter into an ...
, which was long a standard clause in professional sports player contracts in the United States. The clause forbade a player from negotiations with another team without the permission of the team holding that player's rights even after the contract's term was completed. This system began to unravel in the 1970s due largely to the activism of players' unions, and the threat of
anti-trust Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...
legal actions. St. Louis Cardinal star Curt Flood started the ball rolling when he refused a trade to the Philadelphia Phillies. He had been a player for 12 years and felt he should have a voice in where he played baseball. Even though he lost his case in the
Supreme Court A supreme court is the highest court within the hierarchy of courts in most legal jurisdictions. Other descriptions for such courts include court of last resort, apex court, and high (or final) court of appeal. Broadly speaking, the decisions of ...
, he was the first baseball player to try to end the reserve clause. Although anti-trust actions were not a threat to
baseball Baseball is a bat-and-ball sport played between two teams of nine players each, taking turns batting and fielding. The game occurs over the course of several plays, with each play generally beginning when a player on the fielding t ...
, which has long been exempt from anti-trust laws, that sport's reserve clause was struck down by a United States arbitrator as a violation of labor laws. By the 1990s, most players with several years' professional experience became
free agent In professional sports, a free agent is a player who is eligible to sign with other clubs or franchises; i.e., not under contract to any specific team. The term is also used in reference to a player who is under contract at present but who i ...
s upon the expiry of their contracts and were free to negotiate a new contract with their previous team or with any other team. This situation, called Restricted
Free Agency In professional sports, a free agent is a player who is eligible to sign with other clubs or franchises; i.e., not under contract to any specific team. The term is also used in reference to a player who is under contract at present but who is ...
, led to "bidding wars" for the best players—a situation which inherently gave an advantage in landing such players to more affluent teams in larger media markets.


In North American leagues


National Football League

The new
Collective Bargaining Agreement A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company (or with an ...
(CBA) formulated in 2011 had an initial salary cap of $120 million. While the previous CBA had a salary floor, the new CBA did not have one until . Starting with that season, each team is required to spend a minimum of 88.8% of the cap in cash on player compensation, and 90% in future years. However, the floor is based on total cash spent over each of two four-year periods, the first running from 2013–2016 and the second from 2017–2020. A team can be under the floor in one or more seasons in a cycle without violating the CBA, as long as its total spending during the four-year period reaches the required percentage of the cap. This allows for unforeseen circumstances such as career ending injuries or unexpected player retirements to not result in an immediate penalty. As a result, teams are not forced to immediately take on a replacement for missing players which allows them to use more organic approaches such as a trade, free agency acquisition or the draft. The NFL's cap is a hard cap that the teams have to stay under at all times, and the salary floor is also a hard floor. Penalties for violating or circumventing the cap regulations include fines of up to $5 million for each violation, cancellation of contracts and/or loss of draft picks. Violating the salary floor regulations does not result in any fines or competitive penalties; instead, deficiencies are placed into a pool and distributed among all players who were on the regular roster of the offending team during a four-year floor cycle, prorated according to time on the roster in said period. The cap was first introduced for the 1994 season and was expected to be $32 million, but an unexpectedly high bid from Fox and other networks increased the cap to $34.6 million. Both the cap and the floor are adjusted annually based on the league's revenues, and they have increased each year. In , the final capped year under that agreement, the cap was $128 million per team, while the floor was 87.6% of the cap. Using the formula provided in the league's collective bargaining agreement, the floor in 2009 was $112.1 million. Under the NFL's agreement with the
NFLPA The National Football League Players Association, or NFLPA, is a labor union representing National Football League (NFL) players. The NFLPA, which has headquarters in Washington, D.C., is led by president J. C. Tretter and executive director DeM ...
, the effects on the salary cap of guaranteed payments such as signing bonuses are, with a few rare exceptions, prorated evenly over the term of the contract. During the offseason and preseason, only the top 51 salary figures are counted towards the cap. Once the 53-man rosters go into effect for the regular season the salaries of all players on the active roster, injured reserve, and practice squad, as well as unpaid bonuses and guarantees for former players count towards the cap. In transitions, if a player retires, is traded, or is cut before June 1, all remaining bonus is applied to the salary cap for the current season. If the payroll change occurs after June 1, the current season's bonus proration is unchanged, and the next year's cap must absorb the entire remaining bonus. When a player is franchise tagged the salary cap will be affected. When the salary cap can't be met for a tagged player the National Football League will fund the remainder of the contract. Each team may only tag one player per year. Because of this setup, NFL contracts almost always include the right to cut a player before the beginning of a season. If a player is cut, his salary for the remainder of his contract is neither paid nor counted against the salary cap for that team. A highly sought-after player signing a long-term contract will usually receive a signing bonus, thus providing him with financial security even if he is cut before the end of his contract. Incentive bonuses require a team to pay a player additional money if he achieves a certain goal. For the purposes of the salary cap, bonuses are classified as either "likely to be earned", which requires the amount of the bonus to count against the team's salary cap, or "not likely to be earned", which is not counted. A team's salary cap is adjusted downward for NLTBE bonuses that were earned in the previous year but not counted against that year's cap. It is adjusted upward for LTBE bonuses that were not earned in the previous year but were counted against that year's cap. One effect of the salary cap was the release of many higher-salaried veteran players to other teams once their production started to decline from the elite level. On the other hand, many teams have made a practice of using free agents to restock with better personnel more suited to the team. The salary cap prevented teams with superior finances from engaging in the formerly widespread practice of stocking as much talent on the roster as possible by placing younger players on reserve lists with false injuries while they develop into NFL-capable players. In this respect, the cap functions as a supplement to the 55-player roster limit (up from 53 since 2020) and
practice squad In sports, the practice squad, also called the taxi squad or practice roster, is a group of players signed by a team but not part of their main roster. Frequently used in gridiron football, they serve as extra players during the team's practices, ...
limits (14 practice players by 2022 up from 10). Generally, the practice of retaining veteran players who had contributed to the team in the past, but whose abilities have declined, became less common in the era of the salary cap. A veteran's minimum salary was required to be higher than a player with lesser experience, which means teams tended to favor cheaper, less experienced prospects with growth potential, with an aim to having a group of players who quickly develop into their prime while still being on cheaper contracts than their peers. To offset this tendency which pushed out veteran players, including those who became fan favorites, the players' association accepted an arrangement where a veteran player who receives no bonuses in his contract may be paid the veteran minimum of up to $810,000, while accounting for only $425,000 in salary-cap space (a 47.5% discount). The salary cap also served to limit the rate of increase of the cost of operating a team. This has accrued to the owners' benefit, and while the initial cap of $34.6 million has increased to $123 million (maximum in 2009), this is due to large growths of revenue, including merchandising revenues and web enterprises, which ownership is sharing with players as well. The owners opted out of the CBA in 2008, leading to an uncapped season in 2010. During the
season A season is a division of the year based on changes in weather, ecology, and the number of daylight hours in a given region. On Earth, seasons are the result of the axial parallelism of Earth's tilted orbit around the Sun. In temperate and ...
, most NFL teams spent as if there was a cap in place anyway, with the league warning against teams front-loading contracts during the season. The
Dallas Cowboys The Dallas Cowboys are a professional American football team based in the Dallas–Fort Worth metroplex. The Cowboys compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) East divis ...
,
New Orleans Saints The New Orleans Saints are a professional American football team based in New Orleans. The Saints compete in the National Football League (NFL) as a member of the league's National Football Conference (NFC) South division. Since 1975, the te ...
,
Oakland Raiders The Oakland Raiders were a professional American football team that played in Oakland from its founding in 1960 to 1981 and again from 1995 to 2019 before relocating to the Las Vegas metropolitan area where they now play as the Las Vegas Ra ...
, and
Washington Redskins The Washington Commanders are a professional American football team based in the Washington metropolitan area. The Commanders compete in the National Football League (NFL) as a member club of the league's National Football Conference (NFC) ...
chose to spend money in the spirit of an uncapped year, and in 2012 the Cowboys and Redskins (the top two NFL teams by revenue in 2011) were deducted $10 million and $36 million respectively from their salary caps, to be spread over the next two seasons. This $46 million was subsequently divided up among the remaining 28 NFL teams ($1.64 million each) as added cap space: this excluded the Raiders and Saints, as they were also over the cap, though to a lesser degree than the Cowboys and Redskins. The actions of the league to punish those teams that were acting within their legal bounds during the uncapped year led to a lawsuit against them by the NFLPA. The case argued that the rest of the league colluded to keep average player salaries from rising in a year they expected them to skyrocket and unfairly punished teams that did not collude. The NFL settled the lawsuit with the NFLPA. The Impact of Effective Salary Cap Management on Team Success in the NFL The salary cap is defined as a rule that places a limit on the amount of money a team can spend on players' salaries. Since its implementation, it's had a widespread impact on teams and organizations in the sports industry. It has changed how organizations invest in their players and the future as a whole. It has proven to be an obstacle in the pursuit of sustained success. Since 1994, The National Football League has only experienced a handful of repeat Super Bowl appearances. In one of his most prominent studies, James Carrey researched salary and performance data across the NFL over a 10-year period. Ultimately, his study showed that strategic management of player compensation directly resulted in an increase in wins. Salary figures across the four major professional sports leagues in the United States can be compared. Doing so better enables one to understand the impact the cap has on a broader scale. Andrew Zimbalist argues that the data collected by revenue analysts across the respective leagues can be misinterpreted. This misinterpretation comes from the disparities in organizational structures across the leagues. In his study, Andrew Zimbalist collects compensation logistics for athletes. He subsequently relates it to overall revenue generated by a sports organization. The concept of adjusted data analytics is used in this study to compare the salary and revenue shares of the National Football League, National Hockey League, National Basketball Association, and Major League Baseball. In all, Zimbalist analyzes how salary caps have impacted controlling player costs. The study shows how the cap has affected the way organizations invest in and compensate their players. There is a perceived sunk-cost assumption that has arisen from the NFL's salary cap. This assumption underlines an analytical approach on the topic. In one of his studies, Quinn Keefer ran a regression on the structure of the NFL draft. The regression relates playing time amongst players to the regulations that have come from the salary cap. It was concluded that there is a positive correlation between salary and games started. An increase in salary cap value results an increase in games started for the players who were selected in the first two rounds of the draft. Despite no acknowledgeable differences in productivity, the salary cap enables first round selections to receive compensation premiums and signing bonuses. These benefits result in those particular players starting more games than players who weren't selected early on in the draft. The salary cap, and the regulations that are a part of it, come from the NFL collective bargaining agreement. This is an agreement between the league and its player association that discusses the sharing of revenue and other compensation rules. Quinn Keefer, in his analysis, primarily focusses on the section of the agreement regarding player compensation. He highlights that two major changes came from the 2011 collective bargaining agreement. One major change was rookie wage scale and how their selection in the draft notably affected their compensation and playing time. The second change was a limit placed on the first-year salary for players. Although these changes led to a higher first-year compensation for rookies-especially those selected in the first two rounds–they ultimately resulted in decreased salaries in the years after. Keefer concluded that there were diminishing returns. Overall, the 2011 collective bargaining agreement resulted in a negative effect on player salaries. This effect has led to a restructured management of rookie contracts over the last decade. Salary dispersion and incentive pay affect team performance across the NFL. Mike Mondello and Joel Maxcy examine this effect through collecting data from the NFL between 2000 and 2007. Mondello and Maxcy performed regression analyses that used both fixed and random effects models. Their study was geared towards establishing a relationship between performance and payroll. A positive relationship between on-field performance and increased payroll was found. Mondello and Maxcy also found a relationship between on-field performance and salary dispersion. Team revenue production, analyzed as a means to measure team performance, was also used in this analysis. Mondello and Maxcy's findings suggest that incentive pay is effective when a pay structure differentiates players based on productivity and quality of performance. The findings in their study have implications that could expand across different sports leagues. Player compensation across the NFL has been widely examined since 1994. Richard Borghesi analyzed the relationship between player compensation and franchise performance in the league between 1994 and 2004. The evidence gathered from these years shows that team success is dependent on both the actual and perceived fairness of player compensation. The data collected also shows that teams who implement the super-star approach to personnel decisions were worse on average when compared to teams who took a different approach. Borghesi shows how the most successful approach to player compensation and salary cap management is to concentrate on players' salaries on a group level. The super-star approach to player compensation leads to a lack of success on the field due to the dissatisfaction among players who recognize a substantial inequality in salaries.
Year by Year Salary Cap


National Hockey League

A salary cap existed in the early days of the
National Hockey League The National Hockey League (NHL; french: Ligue nationale de hockey—LNH, ) is a professional ice hockey sports league, league in North America comprising 32 teams—25 in the United States and 7 in Canada. It is considered to be the top ranke ...
(NHL). During the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, the league was under financial pressure to lower its salary cap to $62,500 per team and $7,000 per player, forcing some teams to trade away well-paid star players in order to fit the cap.


Pre-salary cap

Prior to the resolution of the 2004–05 lockout, the NHL was the only major North American professional sports league that had no luxury tax, very limited revenue sharing and no salary cap. During the
Original Six The Original Six () are the teams that comprised the National Hockey League (NHL) between 1942 and 1967. The six teams are the Boston Bruins, Chicago Black Hawks, Detroit Red Wings, Montreal Canadiens, New York Rangers, and Toronto Maple Leaf ...
era through to the early years of the expansion era, the NHL's strict
reserve clause The reserve clause, in North American professional sports, was part of a player contract which stated that the rights to players were retained by the team upon the contract's expiration. Players under these contracts were not free to enter into an ...
negated the need for a salary cap. Player salaries first became an issue in the 1970s, when Alan Eagleson founded the NHL Players' Association (NHLPA) and the upstart
World Hockey Association The World Hockey Association (french: Association mondiale de hockey) was a professional ice hockey major league that operated in North America from 1972 to 1979. It was the first major league to compete with the National Hockey League (NHL) ...
began competing with the NHL for players. Not all NHL owners were willing to engage in a bidding war, in particular, Harold Ballard of the
Toronto Maple Leafs The Toronto Maple Leafs (officially the Toronto Maple Leaf Hockey Club and often referred to as the Leafs) are a professional ice hockey team based in Toronto. They compete in the National Hockey League (NHL) as a member of the Atlantic Div ...
spent as close to the league minimum on rosters as he could. Since
Maple Leaf Gardens Maple Leaf Gardens is a historic building located at the northwest corner of Carlton Street and Church Street in Toronto, Ontario, Canada. The building was initially constructed in 1931 as an arena to host ice hockey games, though it has sinc ...
was consistently sold out no matter how poorly the Maple Leafs played, Ballard's team was by far the most profitable. The
1994–95 NHL lockout The 1994–95 NHL lockout was a lockout that came after a year of National Hockey League (NHL) hockey that was played without a collective bargaining agreement. The lockout was a subject of dispute as the players sought collective bargaining a ...
was fought over the issue of the salary cap. The 1994–95 season was only partially cancelled, with 48 games and the playoffs eventually being played. Eight NHL franchises were based in
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
at the time of the lockout. Until the 1990s, the Canadian teams usually paid player salaries in Canadian dollars, but with the rise of free agency and a decline in the value of Canadian dollar, players and their agents increasingly demanded to be paid in U.S. dollars. Canadian teams' revenues were, then as now, mostly in Canadian dollars, and the effects of the discrepancy were particularly acute for the small market franchises. The financial difficulties and uncertainties of competing in smaller Canadian markets led to two clubs moving to the U.S.; the
Quebec Nordiques The Quebec Nordiques (french: Nordiques de Québec, pronounced in Quebec French, in Canadian English; translated "Quebec City Northmen" or "Northerners") were a professional ice hockey team based in Quebec City. The Nordiques played in the W ...
to
Denver Denver () is a consolidated city and county, the capital, and most populous city of the U.S. state of Colorado. Its population was 715,522 at the 2020 census, a 19.22% increase since 2010. It is the 19th-most populous city in the Unit ...
, and the
Winnipeg Jets The Winnipeg Jets are a professional ice hockey team based in Winnipeg. The team competes in the National Hockey League (NHL) as a member of the Central Division in the Western Conference, and is owned by True North Sports & Entertainment, p ...
to Phoenix. NHL Commissioner
Gary Bettman Gary Bruce Bettman (born June 2, 1952) is an American sports executive who serves as the commissioner of the National Hockey League (NHL), a post he has held since February 1, 1993. Previously, Bettman was a senior vice president and general cou ...
successfully persuaded the US-based teams to donate towards a pool to mitigate the adverse effects of the exchange rate.


Negotiations

The negotiations for the 2004–05
NHL Collective Bargaining Agreement The NHL Collective Bargaining Agreement (CBA) is the basic contract between the National Hockey League (NHL) (32 team owners and NHL commissioner) and the NHL Players' Association (NHLPA), designed to be arrived at through the typical labour– ...
revolved primarily around players' salaries. The league contended that its clubs spent about 75% of revenues on salaries, a percentage far higher than existed in other North American sports; NHL Commissioner Gary Bettman demanded "cost certainty" and presented the NHLPA with several concepts that the Players' Association considered nothing more than euphemisms for a salary cap, which it had vowed it would never accept. The previous CBA had expired on September 15, 2004, and a lockout ensued, leading to the cancellation of the entire
2004–05 NHL season The 2004–05 NHL season was the National Hockey League's 88th season of operation. The entire 1,230-game schedule, that was set to begin in October, was officially canceled on February 16, 2005 due to an unresolved lockout that began on Septe ...
, the first time a major sports league in North America had lost an entire season to a labor dispute.


Current salary cap

The lockout was resolved when the NHLPA agreed to a hard salary cap based on league revenues, with the NHL implementing revenue sharing to allow for a higher cap figure. The NHL salary cap is formally titled the "Upper Limit of the Payroll Range" in the new CBA. For the
2005–06 NHL season The 2005–06 NHL season was the 89th season of operation (88th season of play) of the National Hockey League (NHL). This season succeeded the 2004–05 season which had all of its scheduled games canceled due to a labor dispute with the Natio ...
, the salary cap was set at US$39 million per team, with a maximum of $7.8 million (20% of the team's cap) for a player. The CBA also mandated the payment of salaries in U.S. dollars, codifying what had been a universal practice for more than a decade. Revenues for the six Canadian teams that were in the league at the time of the lockout have all increased significantly since then, and because the US dollar fell to relative parity with its Canadian counterpart in the early 2010s, league-wide revenues measured in U.S. dollars were inflated accordingly. As a result of these factors, the cap was raised each year of the 2005–12 CBA to $64.3 million for the 2011–12 season, with a cap of $12.86 million for a player. The CBA also contains a salary floor which is formally titled the "Lower Limit of the Payroll Range", the minimum that each team ''must'' pay in player salaries. The lower limit was originally set at 55% of the cap, but is now defined to be $16 million below the cap, therefore the 2011–12 minimum was $48.3 million. Since the current CBA was approved after a later lockout in 2012–13, league revenues have stagnated due to a significant fall in the value of the Canadian dollar against the U.S. dollar. The cap was $69 million for the 2014–15 season and will be $74 million for 2016–17. The difference between the salary cap and a team's actual payroll is referred to as the team's "
payroll room The "Payroll Room" is how much money in a National Hockey League (NHL) team's salary cap is left to acquire players, whether such players are signed as free agents or join the team via a trade or waivers. The term originated in 2005 with the NHL C ...
" or "cap room". Each year of an NHL player contract, the salary earned contributes to the team's "cap hit". The basic cap hit of a contract for each year it is effective is the total money a player will earn in regular salary over the life of the contract divided by the number of years it is effective. This, in theory, prevents a team from paying a player different amounts each year in order to load his cap hit in years in which the team has more cap room. Teams still use this practice, however, for other reasons. Performance bonuses also count towards the cap, but there is a percentage a team is allowed to go over the cap in order to pay bonuses. A team must still factor in possible bonus payments, however, which could go over that percentage. Salaries for players sent to the minors, under most circumstances, do not count towards the cap while they are there. If a player has a legitimate long-term injury, his cap hit is still counted; however, the team is permitted to replace him with one or more players whose combined salary is equal to (or less than) that of the injured player, even if the additional players would put the team over the salary cap. If the team's cap room is larger than the injured player's cap hit, they may take on as much as their cap room; however, the injured player may not return to play until the team is again compliant with the original cap. The NHL has become the first of the major North American leagues to implement a hard cap while retaining guaranteed player contracts. Guaranteed player contracts in the NHL differ from other sports, notably the NFL, where teams may opt out of a contract by waiving or cutting a player. NHL teams may buy out players' contracts, but must still pay a portion of the money still owed which is spread out over twice the remaining duration of the contract. This does not apply for players over 35 at the time of signing; in this case a team cannot buy out the player's contract to reduce salary. Any other player can be bought out for of the remaining salary if the player is younger than 28 at the time of termination, or of the remaining salary if the player is 28 or older. Trading cash for players or paying a player's remaining salary after trading him have been banned outright in order to prevent wealthier teams from evading the restrictions of the cap. Players, agents or employees found to have violated the cap face fines of $250,000 – $1 million and/or suspension. Teams found to have violated the cap face fines of up to $5 million, cancellation of contracts, forfeiture of draft picks, deduction of points and/or forfeiture of game(s) determined to have been affected by the violation of the cap.


National Basketball Association (soft cap + luxury tax)

The NBA had a salary cap in the mid-1940s, but it was abolished after only one season. The league continued to operate without such a cap until the 1984–85 season, when one was instituted in an attempt to level the playing field among all of the NBA's teams and ensure competitive balance for the Association in the future. Before the cap was reinstated, teams could spend whatever amount of money they wanted on players, but in the first season under the new cap, they were each limited to $3.6 million in total payroll. Under the 2005 CBA, salaries were capped at 57 percent of basketball-related income (BRI) and lasted for six years until June 30, 2011. The next CBA, which took effect in 2011–12, set the cap at 51.2 percent of BRI in 2011–12, with a 49-to-51 band in subsequent years. The salary cap for was set at $94.14 million, with the salary floor at 84.73 million and the luxury tax limit at $113.29 million. The current CBA took effect with the 2017–18 season. The NBA uses a "soft" cap, meaning that teams were allowed to exceed the cap in order to retain the rights to a player who was already on the team. This provision was known as the "Larry Bird" exception, named after the former
Boston Celtics The Boston Celtics ( ) are an American professional basketball team based in Boston. The Celtics compete in the National Basketball Association (NBA) as a member of the league's Eastern Conference Atlantic Division. Founded in 1946 as one of t ...
great Great may refer to: Descriptions or measurements * Great, a relative measurement in physical space, see Size * Greatness, being divine, majestic, superior, majestic, or transcendent People * List of people known as "the Great" *Artel Great (born ...
who was retained by that team until his retirement under the provisions of this rule. The purpose of this rule was to address fan unease over the frequent changing of teams by players under the free agency system, as fans became displeased over their favorite player on their favorite team suddenly bolting to another team. The "Larry Bird" provision of the salary cap gave the player's current team an advantage over other teams in free agent negotiations, thus increasing the chances that a player would stay with his current team. The provision tended to result in most teams being over the cap at any given time. Teams that violated the cap rules faced fines of up to $5 million, cancellation of contracts and/or loss of draft picks, and are prohibited from signing free agents for more than the league minimum. The NBA also has a salary floor, but teams are not penalized as long as their total payroll exceeds the floor at the end of the season. The NBA also uses a "luxury tax" which is triggered if the average team payroll exceeds a certain amount higher than the cap. In this case, the teams with payrolls exceeding a certain threshold had to pay a tax to the league which is divided amongst the teams with lower payrolls. However, this penalty was levied against teams in violation only if the league average also breached a separate threshold. The NBA implemented a maximum salary for individual players. This was done following a dramatic increase in player salaries, in spite of the salary cap, in the mid-1990s. Under the CBA, a player's maximum possible salary increased along with his time of service in the league. For a player of five years' experience, the maximum salary threshold began at 25% of the salary cap, with annual increases of up to 10.5% possible beyond that for players re-signed by their original team, or 8% annual increases for free agents that signed with new teams. For players of greater experience, the salary limit was higher – but the 10.5% limit on annual increases remained the same. The 2011 CBA resulted in several major changes to the salary cap scheme. Most of these changes were retained in the 2017 CBA. The cap remains a soft cap; the Bird exception remains in place, but teams have less financial room to retain a player with Bird rights than under pre-2011 agreements. The 2011 CBA also reduced the maximum length of a contract by a year, and reduced allowable annual raises. Bird free agents are entitled to 5-year contracts with 7.5% raises; all other players (including sign-and-trade acquisitions) are limited to 4-year deals with 4.5% raises. Maximum salaries remain at 25, 30, or 35% of the cap, depending on years of service. These provisions remained intact in the 2017 CBA. Under the current CBA, a player coming off his rookie scale contract, who would normally be eligible to receive a salary of 25% of the cap, is eligible to receive 30% if he has been named MVP in any of the previous three seasons; named the
Defensive Player of the Year Defensive Player of the Year (DPOY or DPOTY) is the name of an award given in sports for outstanding Defense (sports), defensive play by a single player over the course of a season. Many sports leagues award this type of award. League awards for D ...
in the immediately preceding season or two of the three most recent seasons; or named to an All-NBA team in the immediately preceding season or two of the three most recent seasons. These criteria are the same that determine eligibility for a new type of contract introduced with the 2017 CBA—the Designated Veteran Player Extension (DVPE), popularly known as a "supermax" contract. Players entering their eighth or ninth season in the league who meet the aforementioned criteria may be eligible to sign an extension of up to 5 years at 35% of the cap, a salary normally allowed only for players with 10 or more years in the league. Such an extension can only be offered by the team that had the player under contract in the immediately preceding season. A team can use this extension on either a player under contract or its own free agent, but only if the signing team had originally drafted the player or obtained him in a trade during his rookie contract. Substantial changes were made in 2011 to the luxury tax regime. The dollar-for-dollar tax provisions of the 2005 CBA remained in effect through the 2012–13 season. Starting in 2013–14, the tax changed to an incremental system. Tax is now assessed at different levels based on the amount that a team is over the tax threshold, which remains at a level above the actual cap. The scheme is not cumulative—each level of tax applies only to amounts over that level's threshold. For example, a team that is $8 million over the tax threshold pays $1.50 for each of its first $5 million over the tax threshold, and $1.75 per dollar for the remaining $3 million. In addition, "repeat offenders", subject to additional tax penalties, are defined as teams that paid tax in four of the five previous seasons. As in the previous CBA, the tax revenue is divided among teams with lower payrolls. However, under the new scheme, no more than 50% of the total tax revenue can go exclusively to teams that did not go over the cap; the use of the remaining 50% was not specified in the new agreement. Taxpaying teams have additional spending limits under the two most recent agreements (2011 and 2017). They have a smaller "midlevel exception" (another cap provision that allows teams to go over the cap to sign at least one player per season), and can acquire less salary in a trade. Also, since 2013–14, teams that exceed the tax threshold by the so-called "apron", an amount most recently set in the 2017 CBA at $6 million, cannot receive a player in a sign-and-trade deal. The midlevel exception itself also changed with the 2011 CBA. The maximum duration of midlevel contracts was reduced from 5 years to 4 for non-taxpaying teams and 3 for taxpaying teams, and maximum allowable raises were also reduced. In addition, the midlevel exception was extended to teams under the salary cap for the first time; these teams received a 2-year exception. This exception was retained in the 2017 CBA. Under the 2011 CBA, teams were allowed to "amnesty" one player before the start of any season, as long as his current contract was signed during the 2005 CBA. The amnestied player was waived from the team; although the player's former team remained obligated to pay his salary under the old contract (with a credit for any salary paid by a future team), that salary was no longer counted for purposes of the cap or luxury tax calculations. This provision could be used only once per team during the duration of the CBA, which was originally a 10-year deal but allowed either side to opt out in 2017. The "amnesty" provision was eliminated in the 2017 CBA, which was agreed to by the owners and players shortly before the opt-out date. The salary floor, previously 75% of the cap, increased to 85% in 2011–12 and 2012–13, and 90% in future years.


Major League Baseball (luxury tax)

Instead of a salary cap,
Major League Baseball Major League Baseball (MLB) is a professional baseball organization and the oldest major professional sports league in the world. MLB is composed of 30 total teams, divided equally between the National League (NL) and the American League (A ...
implements a luxury tax (also called a competitive balance tax), an arrangement in which teams whose total payroll exceeds a certain figure (determined annually) are taxed on the excess amount in order to discourage large market teams from having a substantially higher payroll than the rest of the league. The tax was first instituted in 1997 and is paid to the league, which then puts the money into its industry-growth fund. A team that goes over the luxury tax threshold for the first time in a five-year period pays a penalty of 22.5% of the amount they were over the threshold, second-time violators pay a 30% penalty, and teams that exceed the limit three or more times pay a 50% penalty from 2013 onwards. There is also an incentive to lower payroll; if in any year a team goes under the threshold, the penalty rate decreases to 17.5%, 25% or 40% (depending on prior record over the previous five years) for the next time the tax is paid. The threshold for 2018 is $210 million. The following teams have been subject to luxury tax since 2003: As of 2017, the New York Yankees have paid 61.75% of all luxury tax collected by MLB. Money collected under the MLB luxury tax are apportioned as follows: The first $2,375,400 and 50% of the remaining total are used to fund player benefits, 25% goes to the Industry Growth Fund, and the remaining 25% is used to defray team's funding obligations from player benefits.


Criticism

Measuring the success of the luxury tax in bringing the benefits of parity has brought mixed results. A team with a $100 million plus payroll has won the World Series 12 times (the 2009 Yankees; the 2004, 2007, 2013 and 2018 Red Sox; the 2011 St. Louis Cardinals; the 2010, 2012 and 2014 San Francisco Giants; the 2015 Kansas City Royals; the 2016 Chicago Cubs; and the 2017 Houston Astros). While a top tier payroll increases a team's chances of making the playoffs, it does not guarantee they will consistently win championships. On the other hand, the New York Yankees have consistently had the highest total payroll in MLB, and they have appeared in 40 of the 114 World Series for 27 wins as of 2018 (35.1% of all World Series for a 24.6% success rate). In the past 30 years, 18 different teams have won the World Series. In comparison, only 14 different teams won the NFL Super Bowl, 13 won the NHL Stanley Cup and 10 won the NBA championship in that same time frame. Other pundits, such as Michael Lewis, the author of the bestseller ''
Moneyball ''Moneyball: The Art of Winning an Unfair Game'' is a book by Michael Lewis, published in 2003, about the Oakland Athletics baseball team and its general manager Billy Beane. Its focus is the team's analytical, evidence-based, sabermetric appro ...
'', have argued that using
World Series The World Series is the annual championship series of Major League Baseball (MLB) in the United States and Canada, contested since 1903 between the champion teams of the American League (AL) and the National League (NL). The winner of the Worl ...
championships as an example of parity may be misleading, and playoff appearances may be a better indicator of relative team strength. The playoff system used in baseball comprises a small number of games compared to success over a long season, and has been described as a "crapshoot" by Oakland A's General Manager
Billy Beane William Lamar Beane III (born March 29, 1962) is an American former professional baseball player and current front office executive. He is the executive vice president of baseball operations and minority owner of the Oakland Athletics of M ...
(the central figure of ''Moneyball''). In fact, teams with consistently high payrolls, including the
New York Yankees The New York Yankees are an American professional baseball team based in the New York City borough of the Bronx. The Yankees compete in Major League Baseball (MLB) as a member club of the American League (AL) East division. They are one ...
and
Boston Red Sox The Boston Red Sox are an American professional baseball team based in Boston. The Red Sox compete in Major League Baseball (MLB) as a member club of the American League (AL) East division. Founded in as one of the American League's eight ...
, have secured high numbers of playoff berths (the two teams have combined to win the AL East 19 out of 25 seasons from 1994–2018). In contrast, teams with low payrolls are far less likely to make the playoffs: for example, the
Pittsburgh Pirates The Pittsburgh Pirates are an American professional baseball team based in Pittsburgh. The Pirates compete in Major League Baseball (MLB) as a member club of the National League (NL) Central division. Founded as part of the American Associati ...
went 20 years without a winning season before making the 2013 playoffs. A number of the small market teams, notably the
Milwaukee Brewers The Milwaukee Brewers are an American professional baseball team based in Milwaukee. They compete in Major League Baseball (MLB) as a member club of the National League (NL) National League Central, Central division. The Brewers are named for t ...
, have called for the introduction of a salary cap, but any introduction is opposed by the MLB players' union and the Yankees' ownership group; the latter have threatened legal action if such a cap is implemented. Although some saw the success of NHL owners in their 2004–05 lockout as an opportunity for MLB to reform its collective bargaining agreement, baseball owners agreed to a new five-year deal in October 2006 that did not include a salary cap. Unlike the other three major North American sports, MLB also has no team salary floor: the only minimum limits for team payrolls are based on the minimum salaries for individual players of various levels of experience that are written into MLB's collective bargaining agreement. The players' union has also historically been vehemently opposed to a team salary floor, considering any floor proposal to be a prelude to a later request for a cap.


Major League Soccer

Here are some major points of the MLS rules and regulations for the 2017 season. * A team's roster can be made up of up to 30 players. They are eligible to be selected to the 18-player team for each game. * The salary cap is $4.035 million per team in 2018, not counting the extra salary of designated players. Players in the first 20 roster spots will count against the cap. * Roster spots 19 and 20 are not required to be filled, and teams may spread their salary budget across only 18 players. A minimum salary budget charge ($67,500 in 2018) will be imputed against a team's salary budget for each unfilled senior roster spot below 18. * The maximum salary for any non-designated player is $504,375. * A designated player counts $504,375 against a team's cap. However, if a player joins his team in the middle of the season, the charge against the budget will be $252,187. * Players who are in the roster spots from 21–30 will not count against a team's cap. They will be known as off-budget players. ** Those in roster slots 21–24 must be a senior minimum salary player ($65,000 base salary – will increase to $67,500 in 2018) or
Generation adidas Generation Adidas is a joint venture between Major League Soccer and U.S. Soccer aimed at raising the level of young professional soccer talent in the United States. The program, sponsored by Adidas, offers professional-ready players in the U. ...
player. ** Those in slots 25–30 must be a reserve minimum salary player ($53,000 base salary – will increase to $54,500 in 2018). Additionally, those who earn the lowest possible league salary must be 24 or younger during the 2017 calendar year. ** Those in slots 29–30 must also be homegrown players. * In addition to the salary cap, each MLS team can also spend additional funds on a player in the form of allocation money and homegrown player subsidy. Since the 2012 season, the cap number for designated players has depended on the players' ages. Since the 2013 season, players 20 or younger have counted $150,000 against the cap and those age 21 to 23 have counted $200,000, with older players remaining at the standard cap number ($368,750 for 2013, $387,500 for 2014, $436,250 for 2015, $457,500 for 2016, $480,625 for 2017, and $504,375 for 2018). For the purpose of determining a cap number, the player's age is determined solely by his year of birth.


Canadian Football League

On June 13, 2006, a proposed salary management system featuring a Maximum Salary Expenditure Cap (SEC) was ratified at the
Canadian Football League The Canadian Football League (CFL; french: Ligue canadienne de football—LCF) is a professional sports league in Canada. The CFL is the highest level of competition in Canadian football. The league consists of nine teams, each located in a c ...
board of governors meeting in
Winnipeg Winnipeg () is the capital and largest city of the province of Manitoba in Canada. It is centred on the confluence of the Red and Assiniboine rivers, near the longitudinal centre of North America. , Winnipeg had a city population of 749 ...
,
Manitoba Manitoba ( ) is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population o ...
. The CFL began enforcing strict salary cap regulation for the 2007 season and the cap was initially set at $4.05 million. The cap will be $5.3 million for the 2020 season or an average salary of $115,217 per active roster player. However, most clubs spend between $7,000,000 to $8,000,000 per season on salaries due to injury exemptions allowed under the cap. For instance, the
Edmonton Eskimos The Edmonton Elks are a professional Canadian football team based in Edmonton, Alberta. The club competes in the Canadian Football League (CFL) as a member of the league's West Division and plays their home games at the Brick Field at Comm ...
spent $8.6 million on salaries in 2018, $8.8 million in 2017 season and $7.9 million in 2016, while still cap compliant. Penalties for teams found to have breached the salary cap or salary floor regulations are: The following breaches of the salary cap have occurred (no team has yet been penalized for violating salary floor regulations): *In 2007, the
Montreal Alouettes The Montreal Alouettes ( French: Les Alouettes de Montréal) are a professional Canadian football team based in Montreal, Quebec. Founded in 1946, the team has folded and been revived twice. The Alouettes compete in the East Division of the Cana ...
were fined $116,570 and forfeited a first-round draft pick after a CFL investigation found that they had exceeded the salary cap by $108,285 during the season. *The
Saskatchewan Roughriders The Saskatchewan Roughriders are a professional Canadian football team based in Regina, Saskatchewan. The Roughriders compete in the Canadian Football League (CFL) as a member club of the league's West Division. The Roughriders were founded in ...
were also fined in 2007 ($76,552) for a string of minor breaches in relation to benefit payments to injured players. *In 2008, the Saskatchewan Roughriders were fined $87,147 for exceeding the salary cap by that amount. *In 2009, the
Winnipeg Blue Bombers The Winnipeg Blue Bombers are a professional Canadian football team based in Winnipeg, Manitoba. The Blue Bombers compete in the Canadian Football League (CFL) as a member club of the league's West division. They play their home games at IG Fie ...
were fined $44,687 for minor breaches in relation to player bonuses. *In 2010, the Saskatchewan Roughriders were fined $26,677 for exceeding the salary cap by that amount. *In 2013, the Saskatchewan Roughriders were fined $17,975 for exceeding the salary cap by that amount.


Major League Rugby

The current team salary cap in the
Major League Rugby Major League Rugby (MLR or USMLR) is a professional rugby union competition and the top-level championship for clubs in North America. In the 2022 season it was contested by thirteen teams: twelve from the United States and one from Canada. Off ...
is $500,000.


Other North American leagues

Salary caps are common in other leagues. The salary cap of the first
Arena Football League The Arena Football League (AFL) was a professional arena football league in the United States. It was founded in 1986, but played its first official games in the 1987 season, making it the third longest-running professional football league in ...
was $1.82 million per team in its final season in 2008. In 2005, the Tampa Bay Storm were fined $125,000 for salary cap violations and their
head coach A head coach, senior coach or manager is a professional at training and developing athletes. They typically hold a more public profile and are paid more than other coaches. In some sports, the head coach is instead called the "manager", as in asso ...
Tim Marcum was suspended for four games (last two of the 2005 season and first two of the 2006 season) and fined $25,250; Marcum was suspended for a fifth game the next day for criticizing the decision at a press conference. When the Arena Football League returned in 2010, it instituted a standard salary of $400 per game and a salary cap of $1.5 million, considerably lower than that paid by teams in the previous AFL; given that the new AFL had a 16-game season in 2010, this effectively means that its players are semi-professional. The
National Women's Soccer League The National Women's Soccer League (NWSL) is a professional women's soccer league at the top of the United States league system. It is owned by the teams and, until 2020, was under a management contract with the United States Soccer Federati ...
, launched in 2013, was initially planned to have a team cap of $500,000, but that was later lowered to $200,000. However, the sport's three North American national federations—the
United States Soccer Federation The United States Soccer Federation (USSF), commonly referred to as U.S. Soccer, is a 501(c)(3) nonprofit organization and the official governing body of the sport of soccer in the United States. Headquartered in Chicago, the federation is ...
, which ran the league through the 2020 season; the
Canadian Soccer Association The Canadian Soccer Association (Canada Soccer) is the governing body of soccer in Canada. It is a national organization that oversees the Canadian men's and women's national teams for international play, as well as the respective junior sides ...
(CSA); and the
Mexican Football Federation The Mexican Football Federation (; abbreviated as Femexfut or FMF) is the governing body of association football in Mexico. It adm the Mexico national team, the Liga MX and all affiliated amateur sectors, and controls promoting, organizing, dire ...
(FMF)—committed to paying the league salaries of many national team players. For the league's first season, 23 US players, plus 16 players each from Canada and Mexico, had their salaries paid by their respective federations; these players' salaries originally did not count against the team cap. Mexican players have not been allocated since FMF launched
Liga MX Femenil The Liga MX Femenil, officially known as the Liga BBVA MX Femenil for sponsorship reasons, is the highest division of women's football in Mexico. Supervised by the Mexican Football Federation, this professional league has 18 teams, each coincid ...
in 2017, but the CSA continued to allocate players to the league through the 2021 season, after which the national team allocation system was abolished. For 2021, the NWSL team salary cap was $682,500, with a cap of $52,500 and a floor of $22,000 for individual player salaries. In a practice similar to that of MLS, "allocation money" can be used to supplement salaries of selected players. Although the salaries of U.S. and Canada national team players allocated to league rosters were paid by the USSF or CSA, these players remained subject to a modified form of the cap. U.S. federation players had a specified cap value of $33,000, with Canadian federation players having a cap value of $27,500 or their actual salary, whichever is lower. The national team allocation system was eliminated after the 2021 season. The league and its players' union entered into their first collective bargaining agreement during the 2021–22 offseason. For 2022, the team cap was raised to $1.1 million, with standard player salaries limited to between $35,000 and $75,000. However, in a system similar to that of MLS, each team is also entitled to use $500,000 per year in "allocation money" (which can be traded) to supplement the salaries of select players. The cap does not include healthcare, which is funded fully by the team; housing, provided by the team either directly or via a stipend of up to $3,000 per month; or transportation, specifically by allowing teams to provide each player with a car with a maximum value of $50,000. The
Premier Hockey Federation The Premier Hockey Federation (PHF), formerly the National Women's Hockey League (NWHL), is a women's professional ice hockey league located in the United States and Canada. The league was established in 2015 with four league-owned teams and h ...
, the main women's professional ice hockey league in the US and Canada, has a team salary cap of US$750,000 and a floor of $562,500 in its 2022–23 season. This was a dramatic increase from the $300,000 cap in the 2021–22 season.


In Europe

Salary caps are rarely used in Europe. However, several European
rugby Rugby may refer to: Sport * Rugby football in many forms: ** Rugby league: 13 players per side *** Masters Rugby League *** Mod league *** Rugby league nines *** Rugby league sevens *** Touch (sport) *** Wheelchair rugby league ** Rugby union: 1 ...
competitions, as well as
ice hockey Ice hockey (or simply hockey) is a team sport played on ice skates, usually on an ice skating rink with lines and markings specific to the sport. It belongs to a family of sports called hockey. In ice hockey, two opposing teams use ice ...
leagues have successfully instituted salary caps. Rugby league's
Super League The Super League (officially known as the Betfred Super League due to sponsorship from Betfred and legally known as Super League Europe), is the top-level of the British rugby league system. At present the league consists of twelve teams, of w ...
, mainly in England with a team also in France (and formerly one in Wales), is capped. The league has used promotion and relegation for most of its history, though from
2009 File:2009 Events Collage V2.png, From top left, clockwise: The vertical stabilizer of Air France Flight 447 is pulled out from the Atlantic Ocean; Barack Obama becomes the first African American to become President of the United States; Protests ...
through
2014 File:2014 Events Collage.png, From top left, clockwise: Stocking up supplies and personal protective equipment (PPE) for the Western African Ebola virus epidemic; Citizens examining the ruins after the Chibok schoolgirls kidnapping; Bundles of wa ...
it operated on a licensing system with some similarities to the North American franchising model. Promotion and relegation returned to Super League in the 2015 season. In rugby union, two of the continent's three main domestic/regional leagues—the English Premiership and the French
Top 14 The Top 14 () is a professional rugby union club competition that is played in France. Created in 1892, the Top 14 is at the top of the national league system operated by the French National Rugby League, also known by its French initialism o ...
—instituted caps despite both being at the top of extensive pyramid structures with promotion and relegation throughout. The most notable European ice hockey league with a salary cap is the
Kontinental Hockey League The Kontinental Hockey League (KHL; russian: Континентальная хоккейная лига (КХЛ), Kontinental'naya khokkeynaya liga) is an international professional ice hockey league founded in 2008. It comprises member clubs ba ...
(which uses the franchising model), and that league implemented a cap despite currency issues.


Rugby union


English Premiership

The Premiership's salary cap has been in place since the late 1990s. By 2007–08, the cap reached £2.2 million. In the following season, it nearly doubled to £4 million, and remained at that amount through the 2011–12 season. A provision applicable only in seasons that run up against the quadrennial
Rugby World Cup The Rugby World Cup is a men's rugby union tournament contested every four years between the top international teams. The tournament is administered by World Rugby, the sport's international governing body. The winners are awarded the Webb ...
, such as 2015–16, gives teams a credit for each player in the squad participating in the competition, helping them to manage their reduced squads in the season's early weeks. This credit was £30,000 in the 2011–12 season, and rose to £35,000 for 2015–16. In addition, each club has a separate salary cap for its academy players (£200,000 prior to 2015–16, reduced to £100,000 thereafter, but with home-grown players no longer counting under this cap), and is allowed to provide an unlimited educational fund to enable its players to pursue university or vocational training. Finally, each club has a separate cap of £400,000 for use in signing replacements for players lost to long-term injuries (12 weeks or more). Through 2011–12, the cap remained at £4 million. However, academy credits were introduced that season. Teams received a £30,000 credit for each home-grown player in their senior squads who was under age 24 at the start of the season and earned more than £30,000, with a maximum of eight such credits. This increased the effective cap to a maximum of £4.24 million (not counting World Cup roster credits). Two substantial changes took effect for 2012–13. First, the cap increased to £4.26 million before academy credits and up to £4.5 million with credits. The most significant change was that each team could now sign one player whose salary did not count against the cap, similar to the Designated Player Rule in MLS. The player so designated, which the Premiership calls an "excluded player", had to meet one of the following three criteria: * Played at least two full seasons with his current club before his designation. * Played outside the Premiership in the season before his designation. * Included in the official squad of any participant in the
2011 Rugby World Cup The 2011 Rugby World Cup was the seventh Rugby World Cup, a quadrennial international rugby union competition inaugurated in 1987. The International Rugby Board (IRB) selected New Zealand as the host country in preference to Japan and South ...
final tournament. For the 2014–15 season, the cap increased to £4.76 million before academy credits and up to £5 million with credits. Other features of the cap remained unchanged. Several significant changes were introduced for the 2015–16 season: * The base cap increased to £5.1 million. * The maximum possible number of academy credits per club remained at eight, but the per-player credit increased to £50,000. In turn, this means that the effective cap for a club that uses all of its academy credits was increased by £400,000 (instead of £240,000 in past seasons). * Clubs may now have two excluded players instead of one. Unlike the first slot, which can be used for a player on a team's current roster, the new slot can only be filled by a player who had not been in the Premiership in the 12 months preceding the start of his initial contract with his Premiership club. A player's inclusion in, or exclusion from, a Rugby World Cup roster is no longer relevant to his status as an excluded player. The cap later increased to a base of £6.5 million with maximum academy credits of £600,000 for the 2016–17 season, and is now at a base of £7 million with the same maximum for academy credits. Additionally, each team receives a credit of £80,000 for each member of the England national team on the roster, and a luxury tax (which the Premiership calls an "overrun tax") is imposed on clubs that exceed the salary cap by more than 5%. The base value of the cap will remain at £7 million through the end of the 2019–20 season.


French Top 14

In December 2009,
Ligue Nationale de Rugby The French National Rugby League (french: Ligue Nationale de Rugby), known as the LNR, manages the professional rugby sector in France, by delegation of the Ministry of Youth and Sports and the French Rugby Federation. LNR * organises, manages and ...
(LNR), operator of the Top 14, announced it would impose a cap of €8 million, effective with the 2010–11 season. Previously, the only restrictions on team salaries were that wage bills were limited to 50% of turnover and that 10% of the salary budget had to be held in reserve. Along with the announcement of the cap, LNR also declared that the reserve requirement would be raised to 20%, with the previous limitation of 50% of turnover remaining in effect. The new cap was slightly higher than the highest official wage bill in the 2009–10 season. Also, due to the complex nature of French club administration, clubs were seen as likely to find creative ways to skirt the cap. This was publicly admitted in 2014 by Mourad Boudjellal, owner of then-current Top 14 power
Toulon Toulon (, , ; oc, label= Provençal, Tolon , , ) is a city on the French Riviera and a large port on the Mediterranean coast, with a major naval base. Located in the Provence-Alpes-Côte d'Azur region, and the Provence province, Toulon is th ...
. Boudjellal found a loophole that allowed him to set up a separate company to supplement the salary of star Jonny Wilkinson by a six-figure amount while staying under the cap. The Top 14 salary cap was set at €9.5 million for 2012–13. For 2013–14, the cap was increased to €10 million, and in addition youth players are excluded from the cap unless their salaries are more than €50,000. The €10 million total cap remained in place for three seasons (through 2015–16); the agreement allowed for the threshold for exclusion of youth players to be adjusted before any of those seasons, but no such adjustment was made. The €10 million cap was later extended through the 2018–19 season. Additionally, each club that has a member of the France national team on its roster (more specifically, one of the 30 players named by the French Rugby Federation to the so-called "elite squad") is allowed to exceed the cap by a set amount per national team member. This amount was fixed at €100,000 through the 2015–16 season, and increased to €200,000 starting in 2016–17. The cap rules were further tweaked for the 2015–16 season. Player bonus payments that amount to more than 10% of a player's salary are now counted against the cap.


Welsh rugby union

On 20 December 2011, the four Welsh regional sides that participate in the competition then known as Pro12, later as Pro14, and now as the United Rugby Championship announced that they would impose a salary cap of £3.5 million, effective with the 2012–13 season. The cap covers only the registered squad for European competitions—at the time of announcement, the
Heineken Cup The European Rugby Champions Cup (known as the Heineken Champions Cup for sponsorship reasons) is an annual rugby union tournament organised by European Professional Club Rugby (EPCR). It is the top-tier competition for clubs who compete in a pre ...
and European Challenge Cup, and from 2014–15 the
European Rugby Champions Cup The European Rugby Champions Cup (known as the Heineken Champions Cup for sponsorship reasons) is an annual rugby union tournament organised by European Professional Club Rugby (EPCR). It is the top-tier competition for clubs who compete in a pr ...
and
European Rugby Challenge Cup The EPCR Challenge Cup is an annual rugby union competition organised by European Professional Club Rugby (EPCR). It is the second-tier competition for clubs based in European leagues behind the European Rugby Champions Cup. From its inception ...
. It does not cover players in the regions' academies. This cap was unilaterally instituted only on the Welsh teams. The URC is uncapped, and none of the other three European countries involved in the URC (
Ireland Ireland ( ; ga, Éire ; Ulster-Scots: ) is an island in the North Atlantic Ocean, in north-western Europe. It is separated from Great Britain to its east by the North Channel, the Irish Sea, and St George's Channel. Ireland is the s ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
, and
Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to ...
) are known to have formally instituted such a system. South Africa maintains a cap and floor on individual player salaries but does not impose a separate team cap. The operation of the cap was modified for select Wales national team players in 2014 by agreement between the
Welsh Rugby Union The Welsh Rugby Union (WRU; cy, Undeb Rygbi Cymru) is the governing body of rugby union in the country of Wales, recognised by the sport's international governing body, World Rugby. The WRU is responsible for the running of rugby in Wales, o ...
and the Welsh professional players' trade union. This agreement introduced "National Dual Contracts", which make signatories available for all Wales national team matches regardless of whether they fall within an official
World Rugby World Rugby is the world governing body for the sport of rugby union. World Rugby organises the Rugby World Cup every four years, the sport's most recognised and most profitable competition. It also organises a number of other international rug ...
window for Test matches. The WRU funds 60% of the salary of NDC players, with the region covering the other 40%, with only the latter amount included in the salary cap.


Kontinental Hockey League

When the
Russian Superleague The Russian Superleague (russian: Чемпионат России Суперлига, ''Russian Championship Superleague''), commonly abbreviated as RSL, was the highest division of the main professional ice hockey league in Russia. It was cons ...
was dissolved to make way to the modern-day KHL, the Kontinental Hockey League Players' Trade Union (KHLPTU) agreed to the implementation of a salary cap. When first implemented there was a salary cap, as well as a salary floor. For the 2009-10 KHL season, the salary cap was 620 million
rubles The ruble (American English) or rouble (Commonwealth English) (; rus, рубль, p=rublʲ) is the currency unit of Belarus and Russia. Historically, it was the currency of the Russian Empire and of the Soviet Union. , currencies named ''rub ...
($US 18.3 million) and the salary floor was 200 million rubles ($US 5.9 million). The KHL's cap operates despite the KHL's multinational nature, with teams in
Belarus Belarus,, , ; alternatively and formerly known as Byelorussia (from Russian ). officially the Republic of Belarus,; rus, Республика Беларусь, Respublika Belarus. is a landlocked country in Eastern Europe. It is bordered by ...
,
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
,
Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bot ...
,
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
, and
Latvia Latvia ( or ; lv, Latvija ; ltg, Latveja; liv, Leţmō), officially the Republic of Latvia ( lv, Latvijas Republika, links=no, ltg, Latvejas Republika, links=no, liv, Leţmō Vabāmō, links=no), is a country in the Baltic region of ...
, in addition to its primary base of
Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-ei ...
. The five non-Russian countries use four different currencies (two countries use the euro), with most floating against the ruble. From 2011–12, each team can sign up to two "designated players" whose salaries are not counted against the cap. Up until 2011, the KHL salary cap was a soft cap, with a luxury tax amounting to 30% of the payroll that is over the cap paid to the special stabilization account, which helps KHL teams facing financial hardship. From the
2012–13 KHL season The 2012–13 KHL season was the fifth season of the Kontinental Hockey League. The regular season began on 4 September with the Lokomotiv Cup between last year's finalists Dynamo Moscow and Avangard Omsk. For the first time, the league consiste ...
onward, the KHL began using a hard cap, set at 1.25 billion rubles (at the time $US 36.5 million). The 2020–21 season was the first which used a hard cap ''and'' a hard salary floor; in that season. the cap was 900 million rubles ($US 12.0 million at then-prevailing exchange rates) and the floor was 270 million rubles (roughly $US 3.5 million)


In European football

Several European
association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 players who primarily use their feet to propel the ball around a rectangular field called a pitch. The objective of the game is ...
leagues have considered introducing salary caps in the early 21st century. In 2002, the BBC reported that the G14 group of 18 leading European football teams would cap their payrolls at 70% of team's income, starting from the 2005/2006 season, however this did not occur.
Serie A The Serie A (), also called Serie A TIM for national sponsorship with TIM, is a professional league competition for football clubs located at the top of the Italian football league system and the winner is awarded the Scudetto and the Cop ...
, the leading Italian football league, and the
English Football League The English Football League (EFL) is a league of professional football clubs from England and Wales. Founded in 1888 as the Football League, the league is the oldest such competition in the world. It was the top-level football league in Engla ...
(consisting of England's second through fourth levels) have also considered salary caps. These measures would be implemented to ensure clubs spend responsibly rather than as a tool to create parity. Top executives in
European football UEFA competitions (french: competitions de l'UEFA), referred improperly by the mass media as European football, are the set of tournaments organised by the Union of European Football Associations (UEFA), generally in professional and amateur asso ...
have acknowledged that a number of challenges not present in North America would confront anyone who tried to implement an effective cap across European football or even across a single league with a view to creating competitive balance: * The various national leagues are in competition with each other for the best players because there is free movement of players between the leagues. Football leagues in
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
countries have been forbidden from prohibiting the signing of EU players from other nations, or even from limiting their numbers. Therefore, if one league imposed a strict cap on its teams, the best players from the country in question would still be free to move to uncapped rival leagues. * The existence of lucrative and prestigious international club competitions encourage clubs to ensure dominance of their national leagues in order to play in the higher-level European leagues. For many top clubs, the domestic league is little more than a stepping stone to the European league. Success in European club competitions is not only a matter of
national pride Patriotism is the feeling of love, devotion, and sense of attachment to one's country. This attachment can be a combination of many different feelings, language relating to one's own homeland, including ethnic, cultural, political or histor ...
, as the number of places allocated to each country for these competitions is determined by that country's teams' past performances in Europe. Salary capped clubs in a franchise structure do not have to compete with teams in rival leagues where there is no salary cap. * Different governing bodies have authority over domestic and international competitions. For example,
UEFA Union of European Football Associations (UEFA ; french: Union des associations européennes de football; german: Union der europäischen Fußballverbände) is one of six continental bodies of governance in association football. It governs fo ...
governs European football and organizes the prestigious Champions League, Europa League, and Europa Conference League, but its authority over the domestic leagues is very limited. Although UEFA could, in theory, impose a salary cap, it would only apply to UEFA's club competitions and to the portion of each team's payroll paid to players registered with UEFA. A wealthy Champions League team could then sign players who would play exclusively in domestic competitions. In other sports that have a single governing body which oversees a single premier competition, the power to enforce salary cap rules is much greater. * The pyramid structure of European leagues means the number of small clubs in the various lower divisions can run into the thousands. The
promotion and relegation In sports leagues, promotion and relegation is a process where teams are transferred between multiple divisions based on their performance for the completed season. Leagues that use promotion and relegation systems are often called open leagues ...
system which allows transfers between these divisions presents challenges to a cap system. A club that is relegated to a lower league after a poor season may find themselves significantly over the lower division cap. Similarly, a promoted club might have to face the challenge of hastily finding players who it could then pay under a higher cap. A salary cap exacerbates the problem of players switching clubs along with the clubs' movement between tiers. * European
tax system A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...
s and
rates Rate or rates may refer to: Finance * Rates (tax), a type of taxation system in the United Kingdom used to fund local government * Exchange rate, rate at which one currency will be exchanged for another Mathematics and science * Rate (mathema ...
vary greatly from country to country. One prominent club, AS Monaco, plays in
Monaco Monaco (; ), officially the Principality of Monaco (french: Principauté de Monaco; Ligurian: ; oc, Principat de Mónegue), is a sovereign city-state and microstate on the French Riviera a few kilometres west of the Italian region of Lig ...
, a principality with no
income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Ta ...
at all. A flat payroll limit would therefore equate to aggregate take home pay that varied greatly from one club to the next, which would make it difficult for teams in countries with higher taxation to attract the best players. By comparison, the differences between the tax systems and tax rates of Canada, the US and between their respective
provinces A province is almost always an administrative division within a country or state. The term derives from the ancient Roman '' provincia'', which was the major territorial and administrative unit of the Roman Empire's territorial possessions ou ...
and states are not nearly as great. * Europeans use multiple currencies and football wages are usually paid in the local currency. Although the countries hosting all but one of the most prominent European leagues now use the
euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
, the one exception, England, has the richest league. Even if a hypothetical
UEFA Union of European Football Associations (UEFA ; french: Union des associations européennes de football; german: Union der europäischen Fußballverbände) is one of six continental bodies of governance in association football. It governs fo ...
-wide cap were denominated in Euros, fluctuating
exchange rate In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of t ...
s would make it difficult for the cap to be fairly administered in the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
since its salaries are paid in pounds sterling. By comparison, most player salaries paid to players on Canadian major sports teams are paid in U.S. dollars; in fact this is now mandated in the NHL to ensure that payrolls do not fluctuate with exchange rates. On the other hand, prior to
Brexit Brexit (; a portmanteau of "British exit") was the Withdrawal from the European Union, withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 Greenwich Mean Time, GMT on 31 January 2020 (00:00 1 February 2020 Central Eur ...
, trying to force British clubs to pay wages in Euros so that their payrolls could not exceed a cap would have met with opposition from clubs since their revenues are collected in pounds, and could have provoked political opposition from Britons determined to prevent the Euro from replacing the pound.


In Australia and New Zealand


Australian rules football

The
Australian Football League The Australian Football League (AFL) is the only fully professional sports, professional competition of Australian rules football. Through the AFL Commission, the AFL also serves as the sport's governing body and is responsible for controlling ...
has implemented a salary cap on its clubs since 1987, when Brisbane and West Coast were admitted, as part of its equalization policy designed to neutralize the ability of the richest and most successful clubs, Carlton, Collingwood and
Essendon Essendon may refer to: Australia *Electoral district of Essendon *Electoral district of Essendon and Flemington *Essendon, Victoria **Essendon railway station **Essendon Airport *Essendon Football Club in the Australian Football League United King ...
, to perennially dominate the competition. The cap was set at A$1.25 million for 1987–1989 as per VFL agreement, with the salary floor set at 90% of the cap or $1.125 million; the salary floor was increased to 92.5% of the cap in 2001, and to 95% of the cap for 2013 onwards due to increased revenues. The salary cap, known officially as Total Player Payments, is A$13,165,950 for the 2020 season with a salary floor of $12,507,652.50. Both the salary cap and salary floor has increased substantially since the competition was re-branded as the AFL in 1990 to assist in stemming the dominance of other high membership clubs, such as
Adelaide Adelaide ( ) is the capital city of South Australia, the state's largest city and the fifth-most populous city in Australia. "Adelaide" may refer to either Greater Adelaide (including the Adelaide Hills) or the Adelaide city centre. The dem ...
,
Hawthorn Hawthorn or Hawthorns may refer to: Plants * '' Crataegus'' (hawthorn), a large genus of shrubs and trees in the family Rosaceae * ''Rhaphiolepis'' (hawthorn), a genus of about 15 species of evergreen shrubs and small trees in the family Rosace ...
and the
West Coast Eagles The West Coast Eagles are a professional Australian rules football club based in Perth, Western Australia. The club was founded in 1986 as one of two expansion teams in the Australian Football League (AFL), then known as the Victorian Football L ...
. Certain payments are excluded from the cap, and concessions are available for some players, in particular "veteran" players (those who have completed 10 seasons with their current club) and "nominated" rookie list players, who are discounted by 50% for purposes of the cap, depending on the number of these players at each club. The AFL Players Association negotiates for players with the AFL on the topic of average salary.


Breaches

The breaches of the salary cap and salary floor regulations are exceeding the TPP, falling below the salary floor, not informing the AFL of payments, late or incorrect lodgement or loss of documents relating to player financial and contract details, or engaging in draft tampering. Trading cash for players and playing coaches, formerly common practices, are also prohibited to prevent wealthier clubs from circumventing the restrictions of the salary cap and salary floor. Penalties for players, club officials or agents include fines of up to one-and-a-half times the amount involved and/or suspension. Penalties for clubs include fines of up to triple the amount involved, forfeiture of draft picks and/or deduction of premiership points. As of 2022, no club has been penalised for breaches of the salary floor regulations, and no punishment has included the deduction of premiership points.


Success of the cap

The VFL/AFL's salary cap has been quite successful in terms of parity: since the cap was introduced in 1987, 17 of the 18 teams have reached the Grand Final, and 14 teams have won the premiership. Another major statistic in regards to the success of the VFL/AFL's cap is that the three richest and most successful clubs, Carlton, Collingwood and Essendon, who won 41 of the premierships between them from 75 Grand Finals in the 90 seasons between 1897 and 1986 (83.3% of all Grand Finals for a 45.6% premiership success rate), have only won six of the premierships between them from twelve Grand Finals since (32.4% of all Grand Finals for a 16.2% premiership success rate). Of note in this regard is that the Sydney Swans, playing as South Melbourne until 1981, mostly struggled in the 50 seasons between 1946 and 1995, and made the finals on just four occasions in that time (a finals success rate of 8%). They had not won a premiership since 1933 and had not appeared in a Grand Final since 1945, but since 1996, have qualified for the finals in 23 of 27 seasons (a finals success rate of 83%) and played in six Grand Finals, winning the premiership in 2005 and 2012.


Football department cap

Originally, the cap was only for the Total Player Payments of each club and not the club's football department. This has caused concern in recent years; for instance, three of the four top-spending clubs played in the Preliminary Finals in 2012 and 2013, and the last team to win the premiership outside the top eight spending teams was North Melbourne in 1999. There had been calls for a separate cap for the football department, or to reform the salary cap to include football department spending, but these had been opposed by the wealthier clubs, with Sydney CEO Andrew Ireland saying that the AFL needed to examine the gap between football department spending for these teams. In 2014, the AFL and its clubs accepted a luxury tax on football department spending (excluding the salary cap) to take effect in 2015 and an overall revenue tax to take effect by 2017. Clubs that exceed the football department cap will pay the AFL the lesser of $1 million or 37.5% of the excess, and repeat offenders will pay the lesser of 75% of the excess or $2 million.


Criticism of the cap

The AFL salary cap is occasionally controversial, as it is a soft salary cap and can sometimes be slightly different for each club. Clubs in poor financial circumstances have not always used their full cap, in some circumstances not even reaching the salary floor. The AFL has also used the cap to pursue its policy of supporting clubs in non-traditional markets such as Sydney and Brisbane.


State and regional leagues

Apart from the AFL, several regional leagues also have salary caps which although widening between them and the AFL and overall less than national competitions, are substantial enough to dictate the movement of semi-professional and professional players between states and the overall playing quality and spectator attendance of the state leagues.


AFL Women's

In 2017, the AFL launched a semi-professional women's national league, known as
AFL Women's AFL Women's (AFLW) is Australia's national semi-professional Australian rules football in Australia, Australian rules football league for women's Australian rules football, female players. The 2017 AFL Women's season, first season of the league ...
: all of its teams are fielded by AFL clubs. In the league's inaugural season of 2017, a three-tiered salary structure was employed: marquee players received A$27,000 for the season, with second-tier players earning $12,000 and other all other listed players $8,500. All three amounts would rise for the league's second season of 2018. In the second season of 2022, marquee players received A$71,935 for the season, with second-tier players earning $55,559, third-tier players $47,372 and all other listed players $39,184.


Rugby league

The
National Rugby League The National Rugby League (NRL) is an Australasian rugby league club competition which contains clubs from New South Wales, Queensland, Victoria, the Australian Capital Territory and New Zealand. The NRL formed in 1998 as a joint partnership ...
has a NRL salary cap, salary cap of A$9.6 million in 2018, with a salary floor of A$9.12 million (95% of the cap). The salary cap keeps average annual player salaries at around A$364,800. The National Rugby League adopted a hard salary cap model in its first season in 1998. The NRL's stated purposes for having a salary cap are "to assist in spreading the playing talent" and "ensure that clubs are not put into positions where they are forced to spend more money than they can afford in terms of player payments, just to be competitive." Before the 2012 season, the NRL's then Chief executive David Gallop said "The cap's there to make sure that pure purchasing power cannot dominate the sport... It means we can genuinely say that all 16 teams ... have a chance. For the fan every week, every game is a contest. That's at the core of why rugby league is so successful." The breaches of the salary cap and salary floor regulations outlined by the NRL are exceeding the salary cap, falling below the salary floor, not informing the NRL of payments, late or incorrect lodgement or loss of documents relating to player financial and contract details or engaging in contract tampering. Trading cash for players is also prohibited to prevent wealthier clubs from evading the salary cap and salary floor regulations. Penalties for players, club officials and agents include fines of the one-and-a-half times of the amount involved and/or suspension. Penalties for clubs include fines of up to triple the amount involved ($10,000 for each document that is late or incorrectly lodged or lost) and/or deduction of premiership points. The NRL is one of the few major leagues to implement a salary cap in a sport that has competing leagues in other countries where there is either no salary cap or a much higher cap per club. As a result, at times there has been a tradition of players from Australia moving to Europe where salaries for the elite, and even for average players, were considerably higher. This is often dependent on exchange rates or the rise and fall in the fortunes of international rugby league or union competitions. The NRL chooses to continue with the cap, believing that any reduction in quality of the sporting product due to the loss of these players is less than allowing richer clubs to dominate. In practice, the goal of parity has been quite successful, with 12 different clubs winning the 19 premierships between 1998 and 2019.


Rugby union


Australia: Super Rugby

Through the 2017 southern hemisphere season, the five Australian teams then playing in rugby union's
Super Rugby Super Rugby is a men's professional rugby union club competition involving teams from Australia, Fiji, New Zealand, and the Pacific Islands. It previously included teams from Argentina, Japan, and South Africa. Building on various Southern Hem ...
competition were subjected to an A$5 million salary cap for a squad of 30 full-time players per Australian team. The Australian Rugby Union, now known as Rugby Australia, decided in 2011 to introduce the salary cap because of financial pressures. Originally starting in 2012 as a cap of A$4.1 million, it was later was raised to $4.5 million for the 2013 and 2014 seasons to take pressure off the teams' ability to recruit and retain players. The salary cap has been key component of negotiations between Rugby Australia and the Rugby Union Players' Association (RUPA) over the collective bargaining agreement. The fact that the Australian teams in Super Rugby face a salary cap has been attributed as a factor that makes it more difficult for Australian teams to win the title. The cap regulations had some small concessions: * Five players on each team could be paid $30,000 each per season by team sponsors; this amount was not included in the team cap. * The maximum cap charge for a non-Australian player was $137,000, regardless of his actual wages. Rugby Australia and RUPA later negotiated a new bargaining agreement, running from 2018–2020, that made significant changes to previous cap schemes. The 2018 season, coinciding with the transition from five Australian Super Rugby sides to four, was uncapped, but the salary cap returned for 2019 and 2020, at A$5.5 million. Prior concessions for sponsor payments and non-Australian players were removed, while a salary floor was added at 90% of the cap.


New Zealand: NPC

The 14 teams participating in New Zealand's top domestic competition, now known once again by its historic name of the National Provincial Championship, faced a salary cap in 2013 that was the lesser of $NZ 1.35 million or 36% of the union's commercial revenue. Maximum player salaries are $55,000, and minimum salaries are $18,000. In August 2013, it was announced that the cap would be further reduced, with the team cap for the 2015 season set to $1.025 million. New Zealand first implemented the salary cap in the 2006 season. The purpose of the salary cap was to ensure an even spread of players to produce competitive matches and higher television audiences for the new, fully professional competition. The salary cap had been as high as $2 million in 2008. However, the competition had generated losses of approximately $9.6m in 2007, and salary payments had increased by 75% in the previous four years. Some teams were reported to be in dire financial position, with four teams having payrolls of $1.75 million or more. The salary cap was cut in 2008, converting what was then known as the ITM Cup into a semi-professional competition, with players not under national team or Super Rugby contracts needing to find other part-time jobs.


Association football


A-League

Both national senior
association football Association football, more commonly known as football or soccer, is a team sport played between two teams of 11 players who primarily use their feet to propel the ball around a rectangular field called a pitch. The objective of the game is ...
(soccer) competitions operating under the A-League banner,
A-League Men A-League Men (known as the Isuzu UTE A-League for sponsorship reasons) is the highest-level professional men's soccer league in Australia and New Zealand. At the top of the Australian league system, it is the country's premier men's competi ...
and A-League Women, have salary caps. A-League Men had a salary cap of A$2.5 million in its most recently completed 2021–22 season, with the cap set to rise by $50,000 in each of the next two seasons. This value had reached $3.2 million in 2019–20, but was reduced to $2.1 million in 2020–21 due to financial fallout from COVID-19. However, the cap has numerous exceptions. First, then-current player contracts were honoured at their full values and not subjected to the cap. In the 2020–21 season, the league's two newest teams, Western United FC, Western United (which debuted in 2019–20) and Macarthur FC, Macarthur (which debuted in 2020–21), were allowed a higher cap of $2.433 million. The league also has a salary floor, set at 90% of the cap. The Salary Cap applies to the 20 to 23 Players that Clubs have registered to their A-League Men Player Roster. Unless specifically exempt, all payments and benefits (eg. cars, accommodation, etc) provided by a Club to a Player are included in the Club’s Salary Cap. Each team can sign two "marquee players" and one "guest player", the latter of whom can only play for a maximum of 14 matches in a season, whose salaries are excluded from the team's salary cap. A-League Men has also introduced a "junior marquee" for eligible under-23-year-old players with the aim of keeping young talented players in Australia (or New Zealand for the Wellington Phoenix) for a longer period, similar to the Designated Player Rule in
Major League Soccer Major League Soccer (MLS) is a men's professional soccer league sanctioned by the United States Soccer Federation, which represents the sport's highest level in the United States. The league comprises 29 teams—26 in the U.S. and 3 in Cana ...
in North America. Each team can also exclude the salaries of up to four "homegrown players", defined as under-23 players who have come from the club's youth system. Finally, once a player has been with a club for 4 consecutive years as a professional, he is considered a "loyalty player", and as long as he remains with that club, part of his salary is excluded from the cap. The percentage of exclusion starts at 12.5% in his fourth season with the club, increases to 25% in his fifth, and increases by 5% in each subsequent season until reaching its maximum value of 50% in his tenth season. The breaches of the salary cap and salary floor regulations outlined by the A-League are exceeding the salary cap, falling below the salary floor, not informing the A-League of payments, late or incorrect lodgement or loss of documents relating to player financial and contract details or engaging in contract tampering. Penalties for players, club officials or agents include fines of up to one and one half times the amount involved and/or suspension. Penalties for clubs include fines of up to triple the amount involved ($7,500 for each document that is late or incorrectly lodged or lost) and/or deduction of competition points. In the 2006–07 season, Sydney FC were fined $174,000 and deducted three competition points after it was found that they had exceeded the salary cap by $110,000 and failed to declare third-party payments during the 2005–06 season in which they were premiers. In 2014–15, Perth Glory were fined $269,000, deducted nine points and ruled ineligible to compete in the finals series after it was found that they had exceeded the salary cap by $400,000 during the season. A-League Women had a cap of $450,000 and floor of $315,000 in the 2021–22 season. The floor is set to rise to $390,000 by 2025–26, with the cap level to be reviewed annually.


National Basketball League

The National Basketball League (Australia), National Basketball League has a salary cap of Australian dollar, A$1.1 million for each of its eight teams as of the 2016–17 season. In addition, from 2003–04 through 2015–16, the NBL used a "points cap" to encourage spread of talent: players were assigned points on a 1–10 basis each season "based on their performance in the NBL or based on the league they have participated in for the season just concluded", and each team's player roster (of between 10 and 12 players) had to fall within a "Total Team Points" limit. On May 9, 2014, in order to help attract high-calibre imports or offer financial incentive for local stars considering overseas opportunities, the NBL introduced a marquee player rule. It originally allowed a team to nominate one player whose salary was paid outside the cap, with a 25% Marquee Player levy applied to any payment made above the salary cap. The levy still applies to non-local marquee players (i.e., players who are neither Australians nor New Zealanders), with one exception introduced in 2016–17. Effective with the 2016–17 season, several significant changes were made to the cap scheme. First, the cap was changed from a hard cap of A$1 million to a soft cap of $1.1 million. Teams exceeding the cap are required to pay "salary equalisation" (effectively a luxury tax) equal to the amount above the cap. Additionally, players' values for purposes of the cap are not based on their publicised salaries, but are instead determined by an NBL panel. Also, the points system in place for the previous 13 seasons was scrapped; in its place, a salary cap provision was added requiring that all teams have at least one group of five players with a collective cap value of no more than A$400,000. Second, the Marquee Player rule was modified with regard to "non-restricted" players; the cap charge for a qualifying player who fills the marquee player slot is now $150,000, regardless of his actual salary. Since that season, "non-restricted" players have been defined as all Australians and New Zealanders, plus one player per team from another country that is a member of either FIBA Asia or FIBA Oceania. The 2018–19 season saw another significant change to the cap scheme with the introduction of the NBL's "Next Stars" initiative, targeted mainly at young American players seeking an alternative to U.S. college basketball, plus Australians and New Zealanders considering U.S. college basketball. The league identifies young prospects preparing to graduate from secondary school and offers them NBL contracts at a first-year salary of A$100,000, plus housing and transport allowances. Players who sign "Next Stars" contracts are then allocated among the league's teams, with each team receiving an extra import roster slot intended to be filled by a "Next Star". As these slots are funded by the NBL, they do not count against the salary cap.


Netball

In netball's now-defunct ANZ Championship, which featured five teams each from Australia and New Zealand, each franchise was restricted to a New Zealand dollar, NZ$380,000 salary cap (as of 2013) from which player salaries were paid. Salary amounts varied among players, but each player received a retainer of at least New Zealand dollar, NZ$12,000 per season; high-profile players were expected to earn up to New Zealand dollar, NZ$50,000. Following the 2016 season, Australia's national governing body of Netball Australia broke away from the trans-Tasman championship and launched its own national league,
Suncorp Super Netball Suncorp Super Netball is the top level netball league featuring teams from Australia. In 2017 it replaced the ANZ Championship, which also included teams from New Zealand, as the top level netball league in Australia. Since 2019, the league has ...
. The initial team salary cap in the new league was Australian dollar, A$675,000, with minimum player salaries of A$27,375. This latter figure was more than double the minimum wage of A$13,250 in the final season of the ANZ Championship. New Zealand rebranded its now-domestic league as the ANZ Premiership, presumably retaining its prior salary cap provisions. Since then, Super Netball's salary cap has risen modestly. The original team cap of A$675,000 had been structured with a $500,000 cap on playing payments, plus an additional $150,000 for club-related employment, educational, and ambassadorial roles, and the balance for health insurance and technology allowances. For the 2019 season, the minimum player wage (not including the health insurance allowance, set at $1,635 for that season) rises to $30,000, and the team cap on playing payments rises to $515,000.


Chinese Super League

Following a 2020 Chinese Super League, 2020 season financially rocked by COVID-19 pandemic in mainland China, COVID-19, the
Chinese Super League The Chinese Football Association Super League, commonly known as Chinese Super League or CSL, currently known as the China Ping An Chinese Football Association Super League for sponsorship reasons, is the highest tier of professional football in ...
saw major turmoil. In February 2021 alone, the reigning champions Jiangsu F.C. folded; Shandong Taishan F.C., Shandong Taishan were expelled from the AFC Champions League for "overdue payables"; and Tianjin Jinmen Tiger were reportedly at risk of collapsing, with Chinese media reporting that the club had not paid players in 10 months. In 2020, then-current Super League member Tianjin Quanjian F.C., Tianjin Tianhai folded, as did Liaoning F.C., which had been the first Chinese club to win the AFC Champions League before dropping to the country's lower levels. In December 2020, the Chinese Football Association imposed a salary cap on the Super League. Effective in 2021, total player wages are capped at Renminbi, RMB 600 million (US $91.7 million at March 2021 exchange rates), with a separate cap of €10 million (US $12.1 million) on total wages of foreign players. Individual player salaries are also capped at RMB 5 million (US $765,000) before tax for Chinese players and €3 million (US $3.63 million) for foreign players.


In rugby union

''Salary caps and currency conversions accurate .'' Notes:


In cricket

''Salary caps and currency conversions accurate as of January 2018.''


2022 season


See also

*List of largest sports contracts *Maximum wage *Minimum wage


References


External links


salary caps 101

CapGeek.com – NHL salary cap calculator, buyout calculator, org charts, free agents, and more

The Hockey GM – Up to date salary cap information for NHL teams



Ask the Commish NFL Salary Cap FAQ, up to date with current (2006) labor deal




* [https://web.archive.org/web/20121030034212/http://www.nrl.com/nrlhq/referencecentre/salarycap/tabid/10434/default.aspx NRL salary cap page]
Sports' salary cap discussed in detail

2010/2011 Toronto Maple Leafs Salary Cap
{{DEFAULTSORT:Salary Cap Sports rules and regulations Sports labor relations Sports culture Terminology used in multiple sports Personnel economics Wages and salaries, Cap