What is NFL salary cap? How does it work? All details explored in 2024

The NFL salary cap limits how much NFL franchises can pay players on its roster in a given season. Franchises cannot exceed the salary cap, and each team must be under the cap by the start of each new league year.

The NFL salary cap typically increases by 5-8% per season. The 2024 season will be the same, and we will look at how the salary cap works, among other things, in this article.

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What is the NFL's salary cap?

The NFL has operated with a salary cap for over three decades to keep a level playing ground in the league. The salary cap is the same for all 32 franchises, so general managers are tasked with staying under the cap for the duration of the season.

Draft picks, free agency signings, waiver claims and trades all count towards the salary cap. Hence, it's not unusual to see teams restructure contracts to open up more cap space. Most franchises have restructuring clauses inserted into their players' contracts, and these help in roster-building moves ahead of the regular season.

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How does the NFL salary cap work?

The NFL salary cap is designed to limit how much an NFL franchise can pay players on their roster in a given season. It is a system put in place across major American sports, and it has helped maintain a semblance of normalcy in the inflated world of professional sports.

The collective bargaining agreement (CBA) stipulates that league owners and players split revenues. Typically, owners receive a slightly larger split in American football while the players get a respectable percentage.

Revenue in the NFL is obtained through three significant sources: NFL ventures/playoff revenue, media revenue and local revenue. The NFL's 32 franchises then divide the players' cut to give each team its salary cap.

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What is the NFL salary cap in 2024?

According to multiple reports, the NFL's salary cap for the upcoming 2024 season will be a record $255.4 million per franchise. The league has announced the news, representing a $30.6 million jump from the 2023 salary cap. This increase is by far the largest the league has seen season-to-season.

The record 2024 salary cap increment is likely a result of the prolific revenue spike enjoyed in the past few months. The NFL has cited "an extraordinary increase in media revenue" for the upcoming season.

This news would be music in the ears of NFL franchises, as they'll have more money to use to retain key free agents and potentially bolster their squads for a playoff push. It's a great time to be an NFL general manager.