Slightly off topic, how are salary caps enforced in North American proffessional leagues? Can anything be learned from them.
All NRL player contracts must be lodged with the Salary Cap Auditor. These contracts are reviewed and each player's remuneration is included in the Salary Cap.
In addition, the CEO and Chairman of each club must provide a statutory declaration to the NRL at the beginning and end of each season in support of the club's Salary Cap calculation.
The Salary Cap Auditor monitors each club's Salary Cap position throughout the year based on the information provided by clubs. In addition, the Salary Cap Auditor may perform investigations into the remuneration of players if discrepancies arise. These investigations usually involve the club and its associated entities and cover all payments made and agreements entered into that may result in benefits being provided to players.
The Salary Cap Auditor also continually monitors media reports and makes enquiries in an effort to uncover any information that may have Salary Cap implications.
When clubs have been found to either breach the Salary Cap or have made undisclosed payments to a player, then the club is issued with a breach notice.
If they don't comply, they are simply fined.
F1 teams will try different ways to circumvent caps, but how do you hide $50-100 millions extra? Not a chance that can happen. At the very least, it will force all the teams to have similar budgets, which is the main goal. There is no need to uncover shenanigans until the last cent. And if budget caps don't work as some say, do they have any other idea that doesn't involve customer cars or doing nothing? (Doing nothing will probably lead to customer cars or spec series, as far as I can see).
Edited by Astro, 21 June 2014 - 03:52.