Salary Caps in Pro Sports - the Cost of Players vs Owners

Salary Caps: the NFL has one, the NBA has one, thecurrently employed in professional sports, the Hard
NHL now has one all that is left is for the MLB to installCap, and the Soft Cap. Many people that are not
one. The basic premise of the salary cap is to ensureparticularly familiar with caps in sports would easily
that owners of a team are not gouged by thewonder why have two different types of cap? The
ever-increasing costs of players for the respectivedifference between the two caps is generally laid out
sport. Albeit the fact that there are loopholes in salaryin variation of the sports that they govern.
caps, like just about any other business endeavor, theA soft cap for example allows for certain exceptions
cap is a great way to control rising player costs asto the cap, which allow for the going over the cap,
well as a manageable system to draft and recruitunder particular circumstances. This is the cap that the
players.NBA employs. The cap can vary from team to team
Currently there is only one of the major sports thatdue to their needs. The NFL carries a hard cap; this
North America enjoys that do not use a salary cap.type of cap cannot under any circumstance be run
That sport being the MLB, considering however theover.
collective bargaining agreement runs out in DecemberMany players are completely against a salary cap, and
2006, one can surely bet that there will be serious talksfor obvious reason. What the cap basically does is limit
towards the cap. There are some insane payrolls inwhat the player can make on a payroll. The owners
the MLB, and if they are not curbed and the entry levelhowever, are elated over this system, as it keeps
pays lowered owners will surely find themselves inmoney from falling out of their pockets on a regular
quite a dilemma.basis.
There are basically two types of salary caps that are