NFL Salary Cap For 2025 Will See A Significant Increase
Teams around the league have anxiously waited to hear the news. It’s difficult to plan moves, acquisitions and transitions without this knowledge. So today the NFL went ahead and made an announcement to help everyone relax. And it’s very good news for all parties involved as the NFL salary cap for 2025 will see a significant increase. According to ESPN senior National NFL reporter Dan Graziano:
“The NFL today informed teams that the 2025 per-team salary cap will fall in the range of $277.5 million to $281.5 million, way up from last year’s $255.4 million. Cap will have increased by more than $53 million over the last two years.”
However, the final figure will be determined following further negotiations with the NFL Players Association. Graziano also posted a portion of the letter sent to NFL teams by the league which said in part:
“As you know, the 2024 Player Cost and Salary Cap amount was reduced by $10 million per club. Due to a $9 million smoothing adjustment and an incremental $1 million being added to Performance Based Pay. The parties agreed that the NFLPA would have the unilateral right to recover up to %50 of the $9 million deferral in the 2025 League Year, with any remaining amount being recovered in the 2026 League Year.
We presented a range of options to the NFL Players Association in December; however, we still have not been advised on how the Union plans to reinstate the deferral for the 2025 League Year. We expect to conclude negotiations over the 2025 Player Cost and Salary Cap amount next week but can provide a projected Salary Cap range of $277.5 – $281.5 million per Club that can be used in your planning leading into the Combine.
Keep in mind that this range is subject to change based on further negotiations with the NFL Players Association.”
NFL Salary Cap For 2025 Will See A Significant Increase
For those who are curious about how the salary cap is calculated it’s done annually. It’s based on a collectively bargained formula tied to league revenues. And thanks to new media rights deals the revenues have increased in recent years. As for that $9 million smoothing adjustment it was done to balance things out. In other words, it would prevent having a massive salary cap one year and then a much smaller salary cap the next year. That way players wouldn’t get new deals in the massive cap year at the expense of players getting lower deals in the smaller cap year.
At any rate, there are teams who already have large amounts of cap space. While other teams are close to or over the cap. Therefore, with this new information they can all plan on how to spend accordingly.
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