Salary cap

A salary cap is a rule that limits the amount of money that a sports team can spend on paying its players. Imagine you have a box of toys that you really love, but you can only spend a certain amount of money on new toys every month. That amount of money is like a salary cap.

In sports, the salary cap is set by the league (the group that organizes and oversees all the teams that play the sport). The league says that each team can only spend a certain amount of money on player salaries. This is often based on the league's total revenue.

A salary cap is designed to make sure that teams can't spend too much money on players and create a huge advantage over other teams. It helps keep things fair and competitive.

So, let's say a basketball team has a salary cap of $100 million. That means they can spend up to that amount on paying their players. If they go over the salary cap, they might face penalties or be forced to get rid of some of their players. If they stay under the salary cap, they might have some money left over to sign new players or give bonuses to other players.

Overall, a salary cap is a way to make sure that sports teams operate on a level playing field, and that the most successful teams aren't always the ones with the most money.