The NFL has given its teams a preliminary look at the 2025 salary cap, projecting it to land between $277.5 million and $281.5 million. The final number will be determined after further discussions with the NFL Players Association (NFLPA).
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Another Significant Jump
Regardless of the final figure, this represents another substantial increase in the salary cap. The 2024 season saw a record-breaking jump, rising from $224.8 million in 2023 to $255.4 million. This year's projected increase means the cap will have grown by at least $53 million over just two years.
The Formula and the Adjustments
The salary cap is calculated annually using a formula tied to league revenues, which have been boosted by new media rights deals. However, the number isn't yet set in stone because the league and the NFLPA engage in annual negotiations to fine-tune the figure.
As the league explained in a memo to teams, last year's cap, for example, was initially projected to be $265.4 million. It was ultimately reduced to $255.4 million due to an agreement between the league and the NFLPA to add $1 million to the performance-based pay pool and implement a "smoothing adjustment" of $9 million.
Why the Delay?
The NFLPA agreed to the smoothing adjustment to avoid drastic year-to-year fluctuations in the cap, which could disproportionately benefit players signing new contracts in high-increase years.
The current delay in finalizing the 2025 cap stems from the NFLPA's decision on how to recoup that $9 million smoothed out of last year's cap. The union can recover up to $4.5 million of that deferral this year, with the remaining amount eligible for recovery next year. The league is awaiting the NFLPA's decision on how much of that $4.5 million they wish to apply to this year's cap, hence the current range.
Looking Ahead
The NFLPA declined to comment for this report.
The league's memo to teams stated they anticipate concluding negotiations with the NFLPA next week, at which point the final cap number will be announced. The new league year, and with it free agency, begins at 4 p.m. ET on March 12.
The memo also included a crucial caveat: "Keep in mind that this range is subject to change based on further negotiations with the NFL Players Association."