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For example, the National Football League has a salary cap for 2004 of about $75 million and the National Basketball Association has a salary cap for 2004 of approximately $44 million. There are multiple reasons for a salary cap but two of the underlying reasons are parity (equality) and competitiveness...
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It is assumed that without a salary cap, large market teams such as New York, Los Angeles, and Chicago will be able to ?buy up' all the good players leaving the small market cities such as Minneapolis, Cincinnati, and Phoenix with the less-talented left-overs. Additionally, teams that win more games and make the playoffs and World Series receive extra revenue from TV, thereby creating even more of a discrepancy if large market teams have an advantage in winning more games and playing in the post-season...
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