The NFL announced this Friday that his Salary cap for 2024 season will be a record $255.4 million per teama surprising one 13.6 percent increase from last year’s cap, and a sign that the league is entering a new phase of explosive revenue.
This year’s salary cap will be $30.6 million more per team up from last year’s $224.8 million, by far the biggest jump it has made from one year to the next since the salary cap was introduced in 1994reported ESPN.
Benefit for teams in free agency
The increase could have a significant impact on the free agent market that opens next month, as most teams had been using salary cap projections in the range of between $240 million and $245 million dollars when budgeting for next season.
As an example, there are three teams (San Francisco 49ers, Green Bay Packers y Seattle Seahawks) that he ESPN Roster Management System projected that they would be above the cap as of this Friday morning, and they should be below the cap now that the actual cap number was set.
Part of the reason for the massive jump is that the league has now refunded all benefits to players who were postponed in 2020 as part of the agreement between the players and the league to keep the league operating during the pandemic Covid-19.
Increase related to league revenue
Salary cap growth is directly related to league revenue growth, but was limited in 2022 and 2023 because the payback of those benefits was subtracted from the final calculations.
With all benefits refunded at this time, the 2024 cap figure more closely reflects the increase in income.
In its announcement of the 2024 salary cap number, the NFL said one of the reasons for the sharp increase was “an extraordinary increase in media revenues”.
Since the league signed new deals with its broadcast partners in 2021, it has been believed that 2024 and 2025 would be the first years in which new television revenues would actually have a notable impact on the league income.
Friday’s announcement indicates that is the case. Given the expected continued impact of the agreements transmission rightssignificant increases in the cap are likely to be expected in the coming years as well.
The NFL experienced an increase in the salary cap of approximately $10 million to $12 million per year every year from 2013 to 2020.
The salary cap was reduced by nearly $17 million in 2021 as a result of projected revenue losses due to the pandemic, but rose again to $208.2 million dollars in 2022, and $224.8 million dollars in the recently completed 2023 season.
2024-02-23 20:11:15
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