What is the salary floor?

• A. The maximum amount a team can spend on salaries.
• B. The minimum amount a team must spend on players salaries to stay competitive.
• C. A floor on luxury tax.
• D. A cap on international players.

Answer: (B)

The salary floor is the minimum amount a team must spend on players' salaries in a season. It’s put in place to ensure teams contribute a baseline level of spending, supporting competitive balance and fair compensation for players. It’s not a spending cap (that’s the maximum a team can spend), nor is it a rule about luxury tax or about international players. So describing it as the minimum payroll a team must spend to stay competitive best captures the idea.