As mentioned, each franchise begins the new league year (June 1) with $100. After paying out salaries for players already under contract and paying out salaries for players signed via the Auction, whatever money is left over can be used to sign in-season free agents.
But what happens if a team concludes the season with cash still in hand?
Teams can use whatever cash remaining they have to pay future salaries of players under contract. By doing this, however, they are taking on additional salary for this year, so their Active Roster salary must remain under the league’s Salary Cap.