A hard cap is the maximum amount that can be spent without exceeding the limit. This style of salary cap is used in the NFL and by many other professional sports. However, the NBA and MLB have similar styles of soft cap. A soft cap means that teams can exceed or stretch the limit, but they will face some sort of consequence. Both the NBA and MLB have their own versions of a luxury tax, but the MLB calls theirs the “Competitive Balance Tax”. A luxury tax is where teams that exceed the cap limit have to pay tax on however much they are over. This is a gradual tax system for both leagues, so the more you’re over, the more you pay. Also, if you have been over for multiple years, then you will pay even more in taxes as well. With the recent NBA CBA coming out that will add more consequences to the NBA’s luxury tax, there are many people wondering if they should just get rid of it and switch to a hard cap like the NFL.
There are several pros to using a hard cap system, but the obvious one is that it increases competitiveness, which is why the MLB calls it the “Competitive Balance Tax”. It’s easy to understand that if everyone has the same amount of money to spend, then it would be more competitive. Without the hard cap in place, the top market teams in LA and New York dominate because they have more money to spend. For example, the Dodgers, Yankees, Warriors, and Lakers will usually have the highest salary, and they will have the best teams because they can and will spend more than other teams. Small market teams like the Oakland Athletics, and Charlotte Hornets will struggle because they don’t make as much money, so they don’t have as much to spend on the top tier talent in free agency every year, and their teams will rarely be good unless they draft really well. Another benefit to using the hard cap is that there are still some ways around it like there is with the soft cap. In the NFL, you often see teams restructure players' contracts. The players still get the same amount of money, but they get it at different times, and teams can shave off a few million dollars at the same time. So, by using the hard cap, organizations will have to make tough decisions, but the talent will be spread across the league instead of on just a few teams, and it will be more fair.
Although there are several pros, there are also many cons. One of the more popular reasons against the hard cap is that the owners of these organizations are billionaires, and spending big money should be encouraged. If you want to win big, you have to pay big. Even if you are in a small market, you can still pay a lot of money and win. For example, the Milwaukee Bucks won the championship recently, and they had to spend a lot of money on big name players like Giannis Antetokounmpo, Khris Middleton, and Jrue Holiday. Another reason against it is that it hurts teams that draft well. As an example, the Denver Nuggets drafted Nikola Jokic, Jamal Murray, and Michael Porter Jr. who all will be paid a lot of money. The soft cap allows them to pay them all max contracts, and still get some key role players, but they wouldn’t be able to do that if there was a hard cap. So, why punish teams for drafting well? Another reason against the hard cap is that it already kind of exists within the luxury tax. The luxury tax is meant to prevent teams from spending big, but still allowing them to if they need or want to. The idea is that if teams need to spend a little extra money to keep a championship caliber team around then they should be able to, but they shouldn’t be able to spend ridiculous amounts of money.
Personally, I like the idea behind a luxury tax even though I don’t think it works as well as it was designed to. I believe in both the NBA and MLB's soft cap because I am a fan of superteams. I want to see more superteams like the 90s Bulls, the recent Warriors with Kevin Durant, and the Dodgers teams every year. None of that would be possible if there was a hard cap. Yes, it does make the league less competitive, but I still like seeing the top talent on the same teams going up against other superteams. I can see why people would like a hard cap, but I am against it.
https://www.uvureview.com/sports/nba-get-rid-luxury-tax/
https://en.as.com/nfl/2023-nfl-free-agency-the-salary-cap-explained-n/
https://tbaw.ca/2023/03/28/how-the-luxury-tax-is-ruining-the-nba/
Do you think a hard cap would be better?
Would you rather watch superteams play, or have a balanced league?
Do you think the NBA or MLB will ever change?
Replies
Great tropic and super job Mason!
I personally think that hard cap is better. I prefer to watch super teams than just have a balanced league. That is the fun in sports, to watch a superteam to all kinds of crazy stuff and have an incredible season and every other team is trying to take them down.
I think that hard cap could turn out being a good idea but it could also turn out bad. It would allow teams to be more balanced and more equality between them. However, this could end up not having competition between teams and just all being the same level which would be boring.
I agree that if the hard cap was implemented then it could lead to the league being boring.
I think it should stay the way it is. It is cool to see super teams but it is also cool to see underdog stories in sports. I think it could be a little more balanced but overall it doesn't make a huge difference.
I agree with you. I also like to see super teams and some underdog stories.
i think a hard cap would be better, i perfer to watch superteams over watching a balanced league. i doubt the nba or mlb would change. i think they probably like how it is now and if it were to change it would probably be awhile becasuse they need to vote and stuff
I disagree. I think a soft cap is better because it allows for more superteams.
I personally think the hard cap could be better, but I prefer to watch superteams over watching a balanced league. I don't really know if the NBA or MLB will ever change, just because I think they probably like the soft cap more than the hard cap.
I agree. I prefer to watch superteams, and I doubt that the NBA and MLB will change because they enjoy the soft cap.
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