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cap space question

Would someone offer a simple explanation?

Say the cap is set at 56 million. That represents the hard cap. The soft cap has exceptions, one of which is the Bird exception that allows the team to exceed the 56 M. However, that amount counts against the team's total salary. So is there any penalty?. Does that team have to pay the Luxury tax? . What other penalties are involved for exceeding the cap? I read somewhere that a team could lose draft choices for exceeding the cap limit. Is this true and has the league ever done something like that?

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