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 stripping of championships won while breaching salary cap rules, and voiding violating contracts. Hard caps are designed so that penalties deter breaking the cap, but there are numerous examples of clubs who occasionally and/or systematically cheat 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; the luxury tax is a common penalty used by leagues.
A salary floor is a minimum amount that must be spent on the team as a whole; this is separate from the minimum salary for each player. Some leagues, in particular the NFL, require teams to meet the salary floor every year, which helps prevent teams from using the salary cap to minimize costs.
Read more about this topic: Salary Cap
Famous quotes containing the words hard, soft, cap, salary and/or floor:
“Having children can smooth the relationship, too. Mother and daughter are now equals. That is hard to imagine, even harder to accept, for among other things, it means realizing that your own mother felt this way, too—unsure of herself, weak in the knees, terrified about what in the world to do with you. It means accepting that she was tired, inept, sometimes stupid; that she, too, sat in the dark at 2:00 A.M. with a child shrieking across the hall and no clue to the child’s trouble.”
—Anna Quindlen (20th century)
“Fathers can seem powerful and overwhelming to their daughters. Let her see your soft side. Express your feelings and reactions. Tell her where you came from and how you got there. Let her see that you have had fears, failures, anxious times, hurts, just like hers, even though you may look flawless to her.”
—Stella Chess (20th century)
“I put a Phrygian cap on the old dictionary.”
—Victor Hugo (1802–1885)
“But compared with the task of selecting a piece of French pastry held by an impatient waiter a move in chess is like reaching for a salary check in its demand on the contemplative faculties.”
—Robert Benchley (1889–1945)
“Cats walk the floor at midnight; that enemy of fog,
The moon, wraps the bedpost in receding stillness....”
—Allen Tate (1899–1979)