Guide
How salary caps work in dynasty fantasy football
A salary cap in contract dynasty fantasy football works the same way it does in the NFL: each team has a maximum budget for player salaries. Every player costs something, and you cannot spend more than the cap allows. This guide explains how salary caps work on League Tycoon, what counts against the cap, and how to manage your cap space strategically.
The basics
In a salary cap league, every player on your roster has a salary that counts against your team's total cap. The salary cap is the maximum amount you can have committed to player salaries, dead money, and other cap charges at any time.
League Tycoon defaults
Salary Cap
$250
Holdback
$50
Cap Rollover Max
$25
Practice Squad Cap %
25% of salary
IR Cap %
100% of salary
Minimum Salary
$1
All settings are configurable by the commissioner.
What counts against the cap
Your total cap usage is the sum of all salary obligations on your team. Here is what counts:
Active roster salaries
Every player on your active roster counts at their full contract salary.
Practice squad salaries
Practice squad players count at 25% of their contract salary by default. A player with a $20 contract salary costs $5 of cap space on the practice squad.
IR salaries
Injured reserve players count at 100% of their contract salary by default. There is no cap relief for placing a player on IR.
Dead money
When you cut a player before their contract expires, a dead money charge stays on your cap. Current-season dead money and next-season dead money are both tracked and count against the cap in their respective years.
Cap space is what remains after subtracting all of the above from your salary cap, plus any rollover from the prior season.
Holdback
Holdback is a portion of your cap space that is locked until all drafts are complete. It ensures you have funds left over for in-season moves like FAAB/waiver bids, promoting players from the practice squad, and cap space for players you receive in trades. Once all drafts are complete, the holdback unlocks and your full cap space becomes available.
Example
If your cap is $250 and the holdback is $50, you can spend $200 until all drafts are complete. Then your full $250 becomes available.
How player salaries are set
Player salaries come from several sources depending on how the player joins your team:
Auction draft
During the startup or free agent auction draft, teams bid on players. The winning bid becomes the player's salary. In contract bidding drafts, teams bid with a salary and a contract length. Longer contracts come with a per-year discount (default: 8% for 2-year, 16% for 3-year, 24% for 4-year, 32% for 5-year).
Rookie scale
Rookie draft picks have salaries based on a rookie scale that factors in draft position. Early first-round picks cost more cap space, while late-round picks are inexpensive. This makes rookie contracts some of the most valuable assets in contract dynasty because you get years of production at below-market cost.
Extensions
When you extend a player, their new salary is calculated based on their recent on-field performance (default: 85% of computed market value from their last 30 games). Breakout players cost more to extend. Each team gets 1 extension per season by default, adding up to 3 additional years.
Franchise tags
A franchise tag retains an expiring player for one season at the higher of two values: the average of the top salaries at their position, or their current salary plus the league's yearly increase. Tags are expensive by design.
Cap rollover
Unused cap space rolls over from one season to the next, up to a configurable maximum (default: $25). At season rollover on April 1st, any unused cap space up to the rollover max carries forward and is added to the next season's cap.
This rewards cap discipline. Teams that manage their spending efficiently get a small head start the following season. Rebuilding teams that intentionally shed salary can accumulate rollover cap as part of their long-term strategy.
Practice squad cap strategy
Practice squad players count against the cap at only 25% of their contract salary. This makes the practice squad one of the most important cap management tools in contract dynasty:
- Stash rookie draft picks on the practice squad at 25% cost while they develop
- If a PS player breaks out, promote them to the active roster (salary increases to 100%)
- If a PS player does not develop, cut them for minimal dead money (25% current year, 0% future years)
- Use the PS to carry upside players who are not ready to contribute without eating significant cap space
The combination of reduced cap cost and reduced dead money makes the practice squad a low-risk way to invest in player development. Leagues that use it well gain a significant cap advantage.
Dead money and the cap
When you cut a player before their contract expires, a dead money penalty stays on your cap. By default:
- Current season: 100% of the player's salary stays on your cap
- Next season: 25% per remaining contract year, charged as a lump sum
- Year 3+: $0. Dead money never lasts more than two seasons.
Dead money is what makes contract length meaningful. Without it, teams could sign every player to a long, cheap deal and cut them freely. With dead money, cutting a player with years remaining creates a real cap consequence.
How League Tycoon handles salary caps
League Tycoon calculates and enforces every team's salary cap automatically. When you make a trade, sign a free agent, extend a contract, cut a player, or make any roster move, your cap space is updated in real time. You can see:
No spreadsheets. No manual calculations. No asking the commissioner what your cap situation is. Every team member has full visibility into their own cap and every other team's cap in the app and on the web.