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:
“But its hard to farm
Between the stumps:
The cows get thin, the milk tastes funny,
The kids grow up and go to college
They dont come back
the little fir-trees do”
—Gary Snyder (b. 1930)
“In marble halls as white as milk,
Lined with a skin as soft as silk,
Within a fountain crystal-clear,
A golden apple doth appear.
No doors there are to this stronghold,
Yet thieves break in and steal the gold.”
—Mother Goose (fl. 17th18th century. In marble walls as white as milk (Riddle: An Egg)
“I put a Phrygian cap on the old dictionary.”
—Victor Hugo (18021885)
“The salary cap ... will be accepted about the time the 13 original states restore the monarchy.”
—Tom Reich, U.S. baseball agent. New York Times, p. 16B (August 11, 1994)
“Heaven nor hell shall impede my designs, said Manfred, advancing again to seize the princess. At that instant the portrait of his grandfather ... uttered a deep sigh and heaved its breast. ... Manfred ... saw it quit its panel, and descend on the floor with a grave and melancholy air.”
—Horace Walpole (17171797)