The NBA has a salary cap and maximum salaries. A team can spend a certain amount of money each year and each player is limited to how much they can be paid. If you have a salary cap, why do you need a max salary? The usual answer is that you don’t want a team paying a player 99% of the salary cap and then the rest of the roster splits the remaining 1%. But a team constructed like that won’t win. And there are spillover effects. There’s the Larry Bird exception, the mid-level exception, the Qualifying Veteran Free Agent Exception. All these exceptions are band-aids to fix unforeseen consequences.
Complex vs Complicated
Complex vs Complicated
Complex vs Complicated
The NBA has a salary cap and maximum salaries. A team can spend a certain amount of money each year and each player is limited to how much they can be paid. If you have a salary cap, why do you need a max salary? The usual answer is that you don’t want a team paying a player 99% of the salary cap and then the rest of the roster splits the remaining 1%. But a team constructed like that won’t win. And there are spillover effects. There’s the Larry Bird exception, the mid-level exception, the Qualifying Veteran Free Agent Exception. All these exceptions are band-aids to fix unforeseen consequences.