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A salary cap limits the amount each team can spend on player salaries, preventing wealthier owners from assembling all the top talent and ensuring a competitive balance in the league. The NFL, for instance, has a salary cap of $301m per team for 2026, contributing to remarkable competitive parity. In 20 of the last 24 years, at least one NFL team has climbed from worst in its division to first the following season. Major League Baseball, which operates without a salary cap, has historically seen far fewer such turnarounds.