The salary cap is often viewed as the most complicated aspect of the NFL. While this is true to some extent, it’s also essential in maintaining teams that build around the league. The accounting procedure controls draft picks, waiver claims, and free agent signings.
The NFL salary cap refers to a limit on how much a team can pay to its players for a particular season. According to the collective bargaining agreement between the NFL and the NFLPA, the revenue split between the owners and players is mandated. This split leans slightly in favor of ownership.
How the NFL Set Its Salary Cap For 2025 Season?
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Derrick Brown adds to the average NFL salary for interior DL.
In 2025, the NFL’s finances are set to grow. The league’s salary cap stands at $279.2 million per team, representing a drastic increase of around $24 million from last season, which was $255.4 million. This hike is attributed to booming revenue from sponsorship growth and global games. According to Spotrac insiders, teams are managing their budgets more strategically. The New England Patriots lead the league with $53.47 million in cap space. While the Detroit Lions and the Cowboys also have good numbers, with the Lions having $33.01 million and the Cowboys having $38.99 million.
Teams like the Falcons (-$15.29 million) and the Bills (-$13.43 million) have crossed their limit in terms of cap space and need to restructure their deals to balance their costs. The New York Giants and Houston Texans are also overburdened with heavy costs and dead money that shake the league’s flexibility.
Dead Cap refers to the salary of players who are no longer on the team but whose contracts remain in effect. For instance, Baltimore had over $30 million in dead money, limiting its ability to add new talent. In contrast, Active Cap refers to a team’s spending on a player’s current contract.
Managing the salary cap is complex. Each team must reach the set limit. However, the league can restructure contracts to share bonuses across multiple years. According to the rule, the team has to spend around 89% of the cap over a four-year window, making it difficult for owners to hoard money rather than invest in players.