Download NFL, NBA, and MLB Salary Caps and Drafts and more Exams Economics in PDF only on Docsity!
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95% and each team has to spend at least 90% of the cap - correct answer ✅In the NFL, how much of the cap must the league (all 32 teams) spend on payroll? Teams must set aside funds from their salary cap to pay newly drafted players. - correct answer ✅In the NFL, what is the rookie salary cap Number of credited seasons - correct answer ✅In the NFL, the leagues minimum salary is based on a players: A veteran player who needs to prove he can stay healthy - correct answer ✅Which of the following players would most likely agree to a split contract? NBA - correct answer ✅Which of the following leagues has a soft salary cap? Maximum player payroll for the entire league Maximum player payroll for each team - correct answer ✅A salary cap is $19.67 million - correct answer ✅An NFL player signs a $20 million 5- year contract that pays $4M per year. The player has opted to defer 50% of his annual compensation until the final year (no deferment in 5th
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year). Assuming a 1.75% discount rate what is the total cap hit after 5 years? During offseason, rosters expand to 90 players, therefore only the top- 51 salaries COUNT against the cap in the offseason - correct answer ✅In the NFL, what is the Top-51 Rule? The CBA limits annual salary increases to no more than 30% - correct answer ✅In the NFL, what is the 30% rule? A performance incentive based on previous performance levels, thus it will be included in the salary cap. - correct answer ✅What is considered a likely to be earned cash incentive in the NFL? Limits the amount that larger market teams can spend on payroll - correct answer ✅How do salary caps/luxury taxes promote competitive balance? 7.5% - correct answer ✅In the NHL, how much can a team exceed the salary cap to pay performance bonuses? Full pay status for three or more regular season games - correct answer ✅In the NFL, how does a player achieve a credited season?
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Exclusive rights free agents - correct answer ✅Which of the following is a category of free agents in the NFL? The compensation to the previous team made free-agents too expensive. - correct answer ✅Why did most teams find it better not to sign free-agents under the Rozelle Rule? The player can become an UFA If the player is signed by another team, his former team will receive Rule 4 draft picks. Draft round depends on financial status of the signing team. If the player is signed by another team, his former team will receive compensatory draft picks. Draft round depends on the financial status of the players former team. - correct answer ✅A MLB player has over 6 service years, which of the following is true? Very few RFA s are valuable enough to warrant a first-round tender The player will require a more money in their contract if it includes a first-round tender. - correct answer ✅Why wouldn t a team just give every player a first-round tender to their RFA to ward off any other team? Salary arbitration - correct answer ✅A MLB player has 3 service years, which of the following does he qualify for?
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The market will direct resources to the team that values them the most
- correct answer ✅The invariance principle states Playing in six regular season games - correct answer ✅In the NFL a player will earn an accrued season after First round draft picks become RFA after the fourth year of their rookie contract - correct answer ✅Which of the following is true about NHL free agency? All of the above are true about the Plan B free agency system - correct answer ✅Under the NFL s Plan B free agency system They ve played in 172 games and on the 25-man roster - correct answer ✅An MLB player earns a service year if: Antitrust law does not apply to disputes between unionized employees and management. - correct answer ✅What is non-statutory labor exemption? Group 6 free agent - correct answer ✅A 25 year old NHL player that has played in 80 NHL games over the past three seasons qualifies as a:
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What is the rationale for having a soft cap? - correct answer ✅Allows teams the opportunity to resign their players and sign veteran players Which of the following is true about the NBA salary cap: - correct answer ✅Approximately 44%-51% of Basketball Related Income (BRI) Teams must spend 90% of the cap Players have maximum salaries based on the number of years in the league -All of the above is true- Which of the following best defines the Larry Bird exception: - correct answer ✅Teams can exceed the cap on their own free-agents. An NBA team is looking to resign one of its long time free agents (3+ years), however doing so will put the team payroll over the salary cap. Which exception best fits this scenario? - correct answer ✅Bird rights An NBA team drafts a player, however signing that player puts them over the salary cap, which exception would the team most likely use? - correct answer ✅Rookie exception
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An NBA team signs another team s free agent, however that signing has resulted in the team s payroll exceeding the apron. Which exception could they use? - correct answer ✅Mid-level taxpayer f a team uses their bi-annual exception, which of the following is true? - correct answer ✅The team can no longer use the MLE-Tax Payer (mini MLE) Which of the following is not true about the Mid-level Exemption? - correct answer ✅The MLE can be used to exceed the apron Which of the following are not one of the two types of drafts in the NFL? - correct answer ✅Lottery reverse order draft Compensatory picks: - correct answer ✅Given to teams that lost more free agents than they signed. The value of compensatory picks is based on? - correct answer ✅A proprietary formula used by the NFL B. Based on the players performance in the next season
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International player must be 22 years old -All of the above- How is the NBA draft order determined? - correct answer ✅Lottery for the first 14 spots, then reverse order How is the MLB draft order determined? - correct answer ✅Reverse order based on win % Which of the following is NOT true about the MLB competitive balance draft? - correct answer ✅The draft order is lottery based Which of the following is true about MLB slot values? - correct answer ✅Slot values are based on the draft pick Total slot values equals the bonus pool The purpose is to limit what a team can spend on newly drafted players
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-All of the above is true-
