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:
“All I have to do
is hear his name
and every hair on my body
just bristles with desire.
When I see
the moon of his face,
this frame of mine
oozes sweat like a moonstone.
When that man
as dear to me as breath
steps close enough to me
to stroke my neck,
the thought of jealousy
is shattered in my heart
that’s hard as diamond
sometimes.”
—Amaru (c. seventh century A.D.)
“Grown beyond nature now, soft food for worms,
They lift frail heads in gravity and good faith.”
—Derek Mahon (b. 1941)
“France, indeed! whose Catholic millions still worship Mary Queen of Heaven; and for ten generations refused cap and knee to many angel Maries, rightful Queens of France.”
—Herman Melville (1819–1891)
“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)
“They seldom looked happy. They passed one another without a word in the elevator, like silent shades in hell, hell-bent on their next look from a handsome stranger. Their next rush from a popper. The next song that turned their bones to jelly and left them all on the dance floor with heads back, eyes nearly closed, in the ecstasy of saints receiving the stigmata.”
—Andrew Holleran (b. 1943)