The NFL has informed teams that the salary cap in 2021 will not be less than $ 180 million, a slight increase over last year’s agreement between the league and the NFLPA.
The league said in a note that the $ 180 million amount is not the final figure of the salary cap, but only an adjustment from the ceiling limit set last summer in negotiations with the union.
The final figure for the 2021 ceiling, the note notes, “will be determined after examining the final figures for earnings in 2020 and other auditable and accounting adjustments”. The new year of the league and the free agency are scheduled to begin on March 17.
Sources familiar with the negotiations told ESPN that the final figure will probably fall between 180 and 185 million dollars, although it is almost certain that it falls into the lower spectrum of that range.
“As you know, one aspect of the agreements negotiated last summer with the NFLPA on pandemic operations indicates that the 2021 wage cap will not be less than $ 175 million,” the note notes. “Following discussions with the union that addressed issues such as actual earnings in 2020 and the projection of attendance for the 2021 season, we agreed to increase the minimum wage for the year in the 2021 League by 180 million dollars. In due course, we will inform all clubs when the salary cap is set ”.
Last summer, while negotiating agreements under the league during the COVID-19 pandemic, the NFL and NFLPA agreed that the initial salary cap limit would be $ 175 million per team by 2021. This decision was made as precautionary measure against the possibility of losing earnings that will reduce the salary cap.
A source indicated that the numbers of earnings on which the annual cap is based would be capped at about $ 160 million per team, which would have been a considerable and disastrous reduction from the $ 198.2 million that each team traded it in 2020.
With a limit now set at $ 180 million, the ceiling will be about $ 20 million higher than it would otherwise have been. This $ 20 million will have to be “borrowed” against future ceilings, and how this will happen is subject to negotiations between the league and the union.
For example, if earnings projections give a salary cap of $ 220 million in 2022 and another $ 230 million in 2023, the NFL and NFLPA might agree to cut those numbers by $ 10 million in each of those years to compensate. the amount of $ 20 discrepancies. Millions in 2021.
The final figure for the 2021 wage cap could take some time to set, as the NFL continues negotiations for new contracts with television networks. These contracts would affect earnings projections and could cause the league to extend the regular season to 17 matches immediately after next season.
However, a source close to these negotiations said that the outcome of the negotiations, in the best case scenario, will not increase the salary cap in 2021 beyond $ 185 million.
Teams can transfer the available space to the salary ceiling from previous years, so that any available space of the teams below the limit of USD 198.2 million in 2020 can be applied to the 2021 ceiling.
The total attendance last season was 1.2 million, down from 17 million in 2019. Thirteen teams did not allow fans in their regular season games, and other clubs limited the number of people to comply with social distance and regulations. health and safety in their states.
The PA contributed to this report.