How do the figures in the cap percentage formula come together?

In the context of the cap percentage formula, the average figure is compared to a total to establish a ratio or percentage. Specifically, you want to determine what portion the average salary of a player (or group of players) represents in relation to the total salary cap for that year. This calculation involves dividing the average salary by the total salary cap.

This process provides insight into how much of the team's salary cap is being consumed by a particular player or group of players, which is crucial for teams in managing their financial resources under the constraints of the salary cap. Understanding this proportion helps agents, teams, and players to navigate contract negotiations and overall team financial strategies effectively.