A team’s salary cap is the total value of the salaries of professional players (dressed or scratched). The coach’s salary is not included, and the salaries of injured players are also excluded.

The salary cap is configurable and voted on at the start of each league. It may be adjusted for subsequent seasons. A team that exceeds the salary cap during the season will pay, at the end of the season, a punitive tax equal to $1 for every $1 over the cap, if this rule is activated.

Salary Cap Calculation and Applicable Penalties #

Since payroll expenses are calculated throughout the regular season (1/82 of the team’s payroll after each game), the penalties, if any, are based on the total salary actually spent during the entire season. This means a team can occasionally exceed the cap without paying a penalty at the end of the season, as long as the season total does not surpass the salary cap.

For every $200,000 in penalties, 1 Finance Point is deducted from the GM’s salary cap rating. According to rules voted on by the GMs, penalties may also apply to teams exceeding the cap by more than $5M. Please refer to your league’s rules for details.

The salary cap does not apply during the offseason, and there is no minimum payroll requirement unless Rule R18.1 on the salary floor is activated.