In the cap percentage formula, how is the top 5 salary average calculated?

The calculation of the top 5 salary average is crucial in understanding how player contracts can affect a team's salary cap. The top 5 salary average is determined by taking the total salaries of the five highest-paid players on the team and dividing that sum by the number of players, which in this case is five.

Thus, over the last five years, the total salary cap is accumulated from the highest-paid players, offering a solid foundation for budgeting and strategic planning within the team's overall salary structure.

This approach ensures accuracy and commonality in assessing the financial implications of high-player contracts, enabling teams to manage their payroll effectively while staying within league cap constraints.