UNDER SALARY CAP

If you own a sports franchise, it’s important to make sure that you balance the books so as not to have any problems with a late audit, done by the Government to avoid any possible problems.

The Canadian Football League officially announced that an extensive audit process has officially confirmed seven of eight teams were under the league’s salary cap.

According to a release sent by the league, the Saskatchewan Roughriders were the only team to exceed the cap. Their total salary expenditure of $4,417,975 was $17,975 over the salary cap of $4.4 million.

The team will be penalized one dollar for each dollar they were over the cap for a total fine of $17,975.

“The salary cap system was brought into the CFL to provide competitive balance and business prudence,” said CFL Commissioner Mark Cohon in the statement. “And the fact that seven of eight teams were under the cap continues to illustrate that our teams believe in this system, work within it, and understand that for the continued growth of our league, we have to remain fiscally responsible.”

The salary cap management system was introduced in 2007.

The system’s review process includes detailed field audits of all eight clubs (twice per year) once during the CFL season and once following its completion of the season.

Teams are also required to provide regular updates on compensation levels at the 6-game, 12-game and 18-game point of the season.

Under the provisions set by the league’s Board of Governors, teams are fined one dollar for every dollar they exceed the cap up to $100,000, and two dollars for every dollar they exceed the cap between $100,000 and $300,000, plus the loss of the team’s first round draft pick.

Teams are fined three dollars for every dollar they exceed the cap beyond $300,000, and they lose their first two draft selections.

As no team exceeded the cap by more than $100,000 in 2013, the order for the CFL Draft on May 13 is not affected.

Thanks to http://www.tsn.ca/cfl/story/?id=450184 for the story.