limit the amount of money a team can spend on its players. Organizations using
the salary cap approach include the National Football
League (NFL), the National Basketball League (NBA), and the National Hockey
League (NHL). Major League Baseball (MLB) is the most popular professional
sporting organization in the US to not utilize a
salary cap, and the issue is hotly debated each time
it is raised. Instead of using a cap, MLB applies a "luxury tax" to teams whose
payrolls exceed a certain amount, and uses that income to help smaller-market
teams increase their payrolls to foster greater competition. However, there is
no actual limit to what a baseball team can spend on its players, either
individually or as a team.