Why does the salary cap keep going up in the NFL?
Most of the NFL teams and fans were caught off guard by the recent news that the 2024 NFL salary cap would increase to $255.4 million, up from $224.8 million last season. That is a whopping $30.6 million increase.
The reason that the cap is ever increasing is the same reason that gas, food, and housing costs increase. Inflation. As prices rise, so must salaries rise to keep pace. But this year’s increase is far in excess of even the most hopeful of projections. In fact, this year’s increase represents the largest year-to-year increase in total money in free agency history.
Part of the reasoning behind the massive boost is a new NFL broadcast deal that will pump $110 billion into the league’s coffers, but a large part of this payout is a recalibration to take into account the advances by clubs and deferments by players during the past few years due to the pandemic. The league has opted to bring the financials back into line in one fell swoop rather than phase it in.
“The unprecedented $30 million increase per club in this year’s salary cap is the result of the full repayment of all amounts advanced by clubs and deferred by the players during the COVID pandemic as well as an extraordinary increase in media revenue for the 2024 season,” said the league in a statement.
Additional revenues from new streaming platforms and gambling revenue mean that the league can afford the hit. But it is almost guaranteed to be a one-off. The new level has been found and future seasons should increase at a more sedate pace.
Comments
Post a Comment