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The NFL salary cap is designed to enable the league to control team spending on players’ salaries. This limits any financial risks and also underpins the financial integrity of the league as no team is allowed to exceed the cap for any reason.
The salary cap for the 2023 season will be a record-high $224.8 million. Here, we take an in-depth look at how the cap hit works in the league.
The collective bargaining agreement between the NFL and the NFL Players Association states that owners and players split revenues. While ownership has historically received a slightly larger share of the pie, players reportedly earn 48% of the profits as of today.
The league's revenue comes from various sources, including media revenue, ventures, playoff revenue, and local revenue. The players’ total is then divided among the 32 teams in the league to give each franchise its salary cap.
The salary cap has generally increased by roughly five to eight percent per season. The only recent season in which the salary cap decreased was in 2021 when the league lost revenue due to COVID.
The salary cap tends to increase every year as league revenues increase. Hence, a lot of teams that are low on cap space will backload player contracts to save cap space and push it to later years where they will have more space.
Meanwhile, teams with more cap space will usually spend more money during free agency to bolster their squad or tie down key players to contract extensions.
Moreover, a salary cap is considered an accounting system and can be manipulated. Teams can use various mechanisms to push money into the future and create more space in the present.
One example is by offering signing bonuses that are typically paid to players almost immediately, but their salary cap impact can be drawn out. Furthermore, teams can restructure contracts for players to open up more cap space if and when required.
When is the 2023 NFL season starting?
The 2023 NFL season is scheduled to commence on September 7, 2023. Defending Super Bowl champions the Kansas City Chiefs will traditionally play in the opening game of the campaign.
The playoffs are expected to start on January 13, 2024, a week after the regular season ends. Importantly, the Super Bowl LVIII is expected to take place on February 11, 2024, at Allegiant Stadium.
