Optimism emerges regarding 2021 salary cap

Getty Images

The negotiations that allowed the 2020 season to proceed included a commitment that the 2021 salary cap will be no lower than $175 million per team. The upcoming negotiations (and it’s negotiated every year) regarding the 2021 salary cap could result in a number significantly higher than $175 million.

Per a league source, the possibility that stadiums will be full for the 2021 season could prompt the league to not tie the hands of teams by dropping the salary cap by more than $23 million per team, from $198.2 million. Although the 2020 season will indeed result in lower revenue than usual, the potential of a return to something normal or close to it plus the coming TV deals may result in the league keeping the cap in the range of $195 million.

Time will tell what the league chooses to do. Although a projected cap typically is shared with all owners in December, the final decision isn’t made until late February or early March, through negotiations with the NFL Players Association. By then, the league will know more about whether the vaccine is being distributed and working properly, setting the stage for coffers being restored via ticket revenue in 2021.

The losses from 2020 will still be absorbed at some point. However, most teams won’t want to tie their hands next year with a dramatically reduced cap. Pushing losses to future years also helps players by reducing the possibility of the widespread termination of veteran contracts.

11 responses to “Optimism emerges regarding 2021 salary cap

  1. Not buying this one. They expected higher tv ratings with everyone at home, but that hasn’t happened and that’s where the money is.

    The reported 40-75 million leas is still the reality. The struggling owners like in Buffalo, Jax, two new LA teams, etc, will need all the relief they can get.

  2. Put it at 200 million. Sorry, but I am not all that sad about the loss of revenue this year. Even with very little revenue from tickets, they still made plenty off the TV deals. We the fans pay for that with these crazy high bills from our cable providers.

  3. I think the owners should suck it up. The valuation of NFL franchises has never, ever decreased. The TV money is exponentially more than the game-day in-stadium revenue from tickets. Truthfully speaking, 65K fans at $100 a pop each weekend barely pays a minimum salary player.

    It is approximately $23M per team. The valuations for NFL franchises, on average, even during this pandemic year, have risen 7%. Assuming a one-billion dollar franchise valuation, that’s $70M per year. Suck it up.

  4. If quarterback’s salaries weren’t 1/4 of the team’s payroll, this probably wouldn’t be a big deal. One greedy position means the rest of the players get less. Even more so if the cap is lowered.

  5. As a fan, it wouldn’t matter much. It’s either some guys make a few mil more, or the market gets squeezed and teams have to be fiscally smarter. The product on the field won’t change.

  6. murphyslaw40 says:
    December 6, 2020 at 11:17 am
    I think the owners should suck it up. The valuation of NFL franchises has never, ever decreased. The TV money is exponentially more than the game-day in-stadium revenue from tickets. Truthfully speaking, 65K fans at $100 a pop each weekend barely pays a minimum salary player.
    ——————————————————————-

    I get what you are saying about the team value, but your math is a little off. At $100 a pop for 65K fans you’re looking at about $52M (8 reg season games, not counting playoffs), so a little over 25% of the salary cap (at 198.2M)…a lot more than just enough to barely pay a min salary player. Patriots for example – avg tick price $127 – 65,878 seats = aprox $67M or 34% of the salary cap.

  7. NFL owners and their billion plus dollar franchises boohooing about 30 million dollars??? For one season? Suck it up, we’ve all had to do it. Most people without billion dollar franchises….

  8. If the salary cap goes to 175… a lot of teams will need to cut players under contract to make the cap. If I’m an owner… why would I want to cut some quality vets and eat 15m – 25m in guaranteed $$$ for a 1 year dip?

    The NFLPA is going to make a deal where they borrow from future a future growth over a couple of years to keep the cap steady in 2021… which is a win for all parties.

  9. I don’t care what the cap is at. It was negotiated and agreed upon by the owners and the players. There is no ‘suck it up’.
    It’s the same cap number for every team. Teams that were pushing money forward will feel the pinch more, but they took the benefit in years past. Cap hell happens every year .

  10. freefromwhatyouare says:
    December 6, 2020 at 10:47 am
    Put it at 200 million. Sorry, but I am not all that sad about the loss of revenue this year. Even with very little revenue from tickets, they still made plenty off the TV deals. We the fans pay for that with these crazy high bills from our cable providers.
    ———————————————-
    Generally, the TV money pays players, coaches, and staff expenses, and travel. Profit is in ticket sales, concessions, parking, and merchandise. So yeah, the owners are loosing about $140m this year. Even billionaire owners notice that.

Leave a Reply

You must be logged in to leave a comment. Not a member? Register now!

This site uses Akismet to reduce spam. Learn how your comment data is processed.