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If more teams can compete for titles, then they will be more entertaining and more people would turn out to the games.
Without the salary cap, teams can throw as much money as they want at a player until the player agrees to play for them. This can become unfair for the smaller franchises. Typically, big name players play for big name teams. Just because a team is not based in a famous city, doesn’t mean they shouldn’t be given the opportunity to be a well-rounded franchise. Small market teams should not have to suffer because they have less money. This happens every season because, as Ira Berkow points out, “ …teams from large cities would be able to purchase the best players and the teams from small markets would no longer be competitive...
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