Which league has no cap and no floor?

Which league has no cap and no floor?

• A. MLB
• B. NBA
• C. NFL
• D. NHL

Answer: (A)

In this topic, payroll rules show how leagues try to control spending. Major League Baseball stands out because it has no fixed maximum or minimum salaries for teams. There’s no hard cap restricting how much a team can pay players, and there’s no floor requiring teams to spend a minimum amount. Instead, MLB uses a luxury tax system for teams that spend above a certain threshold, which discourages excessive spending but doesn’t stop it outright. The other major leagues rely on some form of salary cap to limit spending, often with rules that still allow exceptions or penalties, and they typically include a minimum spending floor to ensure teams invest a baseline amount in players. That contrast is why MLB is the correct choice here.

In this topic, payroll rules show how leagues try to control spending. Major League Baseball stands out because it has no fixed maximum or minimum salaries for teams. There’s no hard cap restricting how much a team can pay players, and there’s no floor requiring teams to spend a minimum amount. Instead, MLB uses a luxury tax system for teams that spend above a certain threshold, which discourages excessive spending but doesn’t stop it outright.

The other major leagues rely on some form of salary cap to limit spending, often with rules that still allow exceptions or penalties, and they typically include a minimum spending floor to ensure teams invest a baseline amount in players. That contrast is why MLB is the correct choice here.