In North America, Major League Baseball has implemented the luxury tax system. The National Basketball Association also has a luxury tax provision; its utility is somewhat limited by the fact that the league also has a salary cap provision. The "hard" salary cap of the National Football League has prevented any need for a luxury tax arrangement.
It was widely assumed that the negotiations between the National Hockey League owners and players would have had to result in the implementation of a luxury tax, a salary cap, or some combination of both either under those or other names; most NHL teams were not financially long-term viable enterprises under the current arrangements. In the end, a hard salary cap was agreed upon.