That refers to "financial penalties and other punitive measures"...what other punitive measures? Did I miss something? All I saw were the fines.
Those fines are pretty steep, and should act as a deterrent to going way over the cap. If I'm reading it right, a $500,000 overspend will result in a $1.1m fine. I doubt anyone will think it worth $1.6 million to increase their payroll by a half a mill.
But I find this statement hilarious: "While 100% compliance is required in 2006, financial penalties and other punitive measures will not be imposed until 2007." Do they honestly think that ANY team is going to abide by the cap this year? To them, no penalties this year means no cap this year. And a lot of teams will be struggling next season to get the players under the cap.
Which may be why a lot of players are signing long-term contracts. I'll bet that with a close look at those contracts, you'd see that the first year pays a lot more than the others. Pay the bulk of the contract in year 1, when there is no penalty for exceeding the cap, and small amounts in the other seasons, to keep the team payroll low when the cap is enforced.