Record Increase in NFL Salary Cap Benefits Players and Teams in Free Agency
The NFL salary cap has experienced a significant increase this year, rising by a record 13.6% from $224.8 million to $255.4 million per team. This jump in the salary cap is expected to have a major impact on players hitting free agency and teams looking to make moves in the offseason.
The news of the increase was received positively by both players and teams. Brandon Beane, the general manager of the Buffalo Bills, expressed his surprise and excitement, stating, “We were hoping it would get to $250 [million], but we didn’t really expect it to… So to get the 255 [million], I was smiling.”
But what does this record increase in the salary cap mean for the NFL and its fans? Let’s take a closer look at the implications and key takeaways.
Why did the cap go up so much this year?
The NFL’s salary cap is calculated based on a percentage of projected league revenues for the upcoming season. The increase in the cap can be attributed to several factors. First, the league signed massive new TV rights deals in 2021, which had a significant impact on revenues. Additionally, all of the player benefits deferred during the COVID-19 pandemic have now been paid back, further contributing to the increase. Finally, some teams outperformed their revenue projections in 2023, leading to improved revenue projections for 2024.
Is this a one-time increase or will the cap continue to rise?
While this year’s increase is substantial, it is unlikely that we will see a similar jump in the salary cap next year. In fact, an agreement was reached between the league and the NFL Players Association to defer a portion of this year’s increase into 2025. The NFLPA was concerned that the 2024 increases resulting from the TV revenue bump wouldn’t translate into next year, and they wanted to ensure fairness for the 2025 free agent class. While it’s possible that 2025 revenue projections could exceed expectations and lead to another spike in the cap, the expectation is that future increases will be more in line with the annual increases we’ve seen in the past.
Impact on franchise tag usage this offseason
The higher salary cap has had a significant impact on franchise tag usage this offseason. The tag numbers are tied to the cap number, so with the cap coming in higher than expected, the franchise tag salaries have also increased. This means that more players have been tagged than they would have been if the cap had been lower. Additionally, the higher cap number may increase teams’ ability to tag and trade players, as they can now carry the full amount of the tag on their salary cap without needing to clear as much cap space.
How does this help teams dealing with massive cap charges for their stars?
The increased salary cap provides some relief for teams dealing with massive cap charges for their star players. For example, the Dallas Cowboys currently have quarterback Dak Prescott carrying a $59.455 million cap charge for 2024. While they may still need to extend his contract to lower his cap number, the additional cap space created by the higher salary cap means they don’t have to make immediate moves to get under the cap. They can also utilize strategies such as converting a portion of Prescott’s salary into a signing bonus to create additional cap space.
Who else benefits from the higher cap number?
The higher salary cap benefits big-name free agents and players looking for new deals. With more teams having cap space, the bidding for top free agents is expected to be higher this year. Additionally, wide receivers seeking new deals, such as Justin Jefferson and CeeDee Lamb, may find it easier to secure extensions with the looser cap. The increased cap number also impacts cut designations, allowing teams to spread out cap costs over multiple years and potentially avoid significant dead money charges.
In conclusion, the record increase in the NFL salary cap has wide-ranging implications for players, teams, and the upcoming free agency period. The additional cap space provides opportunities for teams to make moves and retain key players, while free agents may benefit from higher bidding and increased demand. While this year’s increase is unlikely to be repeated in the future, the higher cap number sets the stage for an exciting offseason in the NFL.
