KIDS TRIVIA

Detailed explanation-1: -The salary cap is the maximum amount of money that teams may spend on contracts for a given season. In 2022, that amount was fixed at $208.2 million. There was a $25.7 million increase from 2021, the year in which the salary cap fell for the first time since it was implemented in 1994.

Detailed explanation-2: -If a team goes over the salary cap, they are fined upwards of five million dollars for each violation of the cap. In more severe scenarios, draft picks can be confiscated entirely and player contracts can be voided. Teams over the cap are also banned from signing any new players until they are back below the cap again.

Detailed explanation-3: -How is the Salary Cap calculated? The Salary Cap is based on a complicated calculation that measures the league’s revenue (or certain revenues) and then apportions around 48% of that revenue to player costs. That player cost number is comprised of two components – (1) player benefits and (2) player salaries.