The MLS (Major League Soccer) has no salary cap, instead they have a budget. Which is different because the MLS is a single entity. The league owns all of the teams and the franchises are simply owner operators. This means that the league pays the teams expenses i.e salaries. The teams however have to pay their designated players the additional amount. Example: David Beckham is paid $6.5 million per year, which is well over the budget for the entire team which means the MLS will pay a portion of his salary then the franchise is required to pay the additional amount to him.
The MLS has found a way around having a salary cap but they still manage to keep teams competitive.
But would this work in a bigger league like the MLB or NFL?
Source: http://www.wakingthered.com/2012/11/15/3637094/mls-salary-cap-details-la-galaxy-robbie-keane-toronto-fc
The source I got this information is a news site and is fairly realiable.
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