What is the purpose of the salary cap in relation to bonuses?

The purpose of the salary cap in relation to bonuses is fundamentally about managing team spending effectively. The salary cap sets a limit on the amount of money that each team can spend on player salaries during a season, which includes not only regular salaries but also bonuses. This structured approach to team finances is designed to prevent wealthier teams from monopolizing talent simply by offering higher salaries and bonuses.

Under the salary cap system, bonuses can be structured in various ways, but they are included in the overall calculation of the salary cap, meaning teams need to carefully plan how they allocate their financial resources. This management is crucial as it helps teams avoid exceeding the cap while ensuring they can still attract and retain talented players.

The intention behind effectively managing team spending is to maintain overall financial health within the league and ensure that teams remain competitive regardless of their market size or revenue generation capabilities. Therefore, the salary cap serves as a crucial tool in promoting fiscal responsibility within teams.