NFL is one of the highest grossing industries in America but there are still rules which keep its money in check, here is the NFL Salary Cap for 2021 and 2022 by year explained
The National Football League (NFL) is America’s highest grossing sports industries where a lot of revenue is generated and players are compensated quite well. However, there are still rules in existence which keep the industry’s money in check. One of them is the salary cap. In simple terms, it is a fixed limit of amount a team is allowed to spend on the salaries of its players. Read on to know the 2021 NFL salary cap explained.
NFL Salary Cap Explained: How Does The Salary Cap Work In 2021 And 2022
The Collective Bargaining Agreement (CBA) had introduced the concept of salary cap to NFL back in 1994 to level the league’s playing field on the financial side. In this way, large market teams are kept from significantly outbidding smaller market teams for talent.
Teams compensate their players via a minimum base salary and bonus payments like signing, option, workout, restructure and roster. These payments together make up the total cap hit.
When it comes to calculating the salary cap for a season, two factors are taken into account – the total revenue from the prior NFL season (sales made through merchandise, ticket, concession, television contracts, etc.) and the revenue percentage negotiated for players from the 32 NFL teams, as per the CBA. In 2021, the cap has observed a decrease for the first time since 2011 due to the absence of fans amidst the pandemic.
What Is The NFL Salary Cap Figure For The 2021 Season?
As announced in March, the salary cap figure for the 2021 season of the National Football League is $182.5 million, 8% less than what it was in 2020. No one could have foreseen that the pandemic would have such dire consequences on the league operations. This also means that higher compensated players will take up a larger chunk of the budget of the team.
However, as the world is gradually coping with the pandemic and returning to the old normal, the 2021 NFL games are expected to be more lucrative as fans return to attendance.
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