National Football League Hard Salary Cap

1
National Football LeagueHard Salary Cap

• Cap set at 64 of League revenues
• Only Exception signing bonuses pro-rated over
  term of contract, creating potential for Cash
  Over Cap
• Few Restrictions on Free Agency
• Average Salary 1.2 million
• Approximately 64 of League revenues paid to
  players
• Most NFL teams are profitable

2
National Basketball AssociationSoft Salary Cap

• Cap set at 55 of League revenues
• Principal Exceptions
• Larry Bird Exception - allows team to re-sign
  own veteran free agent
• Disabled Player Exception
• 1 Million Exception
• Mid-Level Salary Exception - allows team to sign
  one player, every other year, at average salary
  amount
• Rookie Wage Scale

3
NBA (continued)

• Individual Maximum Salary
• Escrow/Luxury Tax System
• Few Restrictions on Free Agency
• Average Salary 4.5 million
• Approximately 60 of League revenues paid to
  players
• About half of NBA teams are profitable

4
Major League BaseballLuxury Tax System

• No Salary Cap
• Teams with payroll greater than 117 million pay
  luxury tax currently only one team pays tax
• Some Restrictions on Free Agency
• Average Salary 2.55 million
• Approximately 65 of League revenues paid to
  players
• Most MLB teams are unprofitable

5
National Hockey LeagueNo Salary Restraints

• No Salary Cap
• No Luxury Tax
• Significant Restrictions on Free Agency
• Average Salary 1.64 million
• Approximately 70 of League revenues paid to
  players
• Most NHL teams are unprofitable