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Salary cap prevents large-market teams from just paying unlimited money to obtain the best talent whenever
If you don't have cap space, you basically only get to sign free agents to minimum contracts.
There are exceptions though. Like going over the cap to re-sign your own players if you have their bird rights.
This is where luxury tax comes in. Deeper you are in the luxury, more it's gonna cost you to keep top-level talent
Luxury is the real salary cap since most teams have no problem going over the actual salary cap
This is how well I understand it from managing teams on 2K
It's definitely more complicated in actuality but you did ask for quick and simple
So basically if you happen to develop a team where theoretically say the entire starting 5 are all stars, you can pay (overpay) for all of them to stay on your team? And thats where the lux tax comes in? And you cant just sign 5 all stars from different teams basically cause of the cap.