prior to the cap it was legal --- you could spend whatever you wanted.
I think the way it worked back then was that other teams could poach your guys, but they would have to compensate you with draft picks and the compensation you got was directly related to their salary --- higher salary = greater comp
also, there was a right of firts refusal back then, so if you didn't want to lose a guy you'd just match the offer.
after the cap was instituted in '93 or '94 is when the niners were supposedly circumventing it by hiding guys on ir, as the only way they knew how to beat people was to outspend them.
can you imagine if the pats were allowed to double up on payroll of the other teams in our division?
we'd probably dominate that division...oh wait.........
anyway, after the cap was in place the niners saw just one conference game in the next 20 years, which they lost.
they won like every other team when they were forced to spend like every other team