I use a "floating" type of cap in one of my league. It goes like this:
Salary Cap = last year's revenue + cash on hand
Using this method, if a team loses money for the season, then cash on hand decreases, making next year's cap decrease.
But if you make money and keep your cash at the 10M maximum, you always have room to sign a player late in a playoff run. Course, you might lose money that year, which would decrease the next year's cap.
I start with all teams at 10M cash on hand and its up to the owner from there.
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