Usually means: Limit on team payroll spending.
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We found 5 dictionaries that define the word salary cap:

General (4 matching dictionaries)
  1. salary-cap: Wordnik
  2. salary cap: Wiktionary
  3. salary cap: Dictionary.com
  4. Salary cap: Wikipedia, the Free Encyclopedia

Slang (1 matching dictionary)
  1. salary cap: Urban Dictionary

Definitions from Wiktionary (salary cap)

noun:  A limit on the salaries paid to the employees of an organization imposed by government or some other body

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