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2021 Salary Cap floor at $180 million; ceiling still being negotiated


Xenos

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1 minute ago, Xenos said:

I wonder what cap will finally be now. 190 million? Or even higher?

Definitely not likely to be higher than 190M. A week or so ago Schefter reported that he was hearing the cap would be around 180-181M. I say it probably goes higher than that but less than 185M. 

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Just now, Xenos said:

I wonder what cap will finally be now. 190 million? Or even higher?

It's not going to be known until the TV deal is finalized.  And this is just the deal for MNF coming up now.    The money for Sunday football (daytime) is going to be nuts, and hopefully the Sunday Ticket will be gone, and replaced by better streaming / network options.    The latter deal is a huge gold mine for the NFL, the Sunday Ticket was incredibly undervalued for the league.   Non-exclusive packages might be the way they go.

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3 minutes ago, J-ALL-DAY said:

Definitely not likely to be higher than 190M. A week or so ago Schefter reported that he was hearing the cap would be around 180-181M. I say it probably goes higher than that but less than 185M. 

That's because only the MNF deal is being negotiated.    After next season, the bump in revenue is going to be potentially massive with the rest of the games being renegotiated.  But yeah, I'd guess maybe it's 185M for 2021, reading all the tea leaves.

Edited by Broncofan
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Just now, minutemancl said:

I'm confused; is this saying the 'salary cap floor', as in the minimum that teams have to spend, is set to $180 million, or is it saying that the 'floor' of the 2021 salary cap is $180 million, meaning that the 2021 salary cap (upper limit) will be at least $180 million?

Door B - teams will have at least 180M to work with, maybe more (181-185 is the CW), as the cap.   They don't have to worry it's 175M.

Teams cap floor is a complex rolling formula, where they have to spend 90 percent of the total cap over a X-year period (last time I saw it was 5, but who knows now, since the CBA was renegotiated last year).

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2 minutes ago, Broncofan said:

Door B - teams will have at least 180M to work with, maybe more (181-185 is the CW), as the cap.   They don't have to worry it's 175M.

Teams cap floor is a complex rolling formula, where they have to spend 90 percent of the total cap over a X-year period (last time I saw it was 5, but who knows now, since the CBA was renegotiated last year).

Got it. Thanks.

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2 hours ago, Tk3 said:

I'm not familiar enough with cap floors, but this seems like an insanely tight window, no?

180M is not the cap spending minimum.

The statement made was the lowest the cap will be next year is 180M.   It could be higher.  It won't be lower.   

The cap minimum is a complex formula where teams have to spend at least 90 percent of the total cap over a X-year period.   In the past it's been 5-years.   No idea what the new CBA has done to this.   But basically, the actual floor for cap spending (=minimum team must spend) is a lot lower, since you can choose to not spend 10 percent/year x 5 years, but you can't save more than that.   It's very rare to see teams even come close to the floor nowadays, but it's also why you won't see teams get to insanely high cap numbers left to spend, either (ie if the cap averages 200M x 5 years, the most you'll see a team have is 120M - 100M from the prior 5 years saved, and the 20M from the present year 200M cap).

Edited by Broncofan
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The smart move would be to freeze the cap this year and push losses forward. The cap is going to jump dramatically in the future with the new TV deals and revenues normalizing after the pandemic. Having a dramatic drop this year followed by the cap exploding will only wreak havoc. Teams will be forced to make a bunch of moves this year to get under the cap and players in FA will not have a great market (leading to a bunch of short-term deals). Freezing the cap is the smart play. But this is the NFL, so they'll probably make the stupid and greedy play.

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I guess they're looking at the start of FA as the target for when they need to have the finalized cap number by but it seems insane to me that there's no definitive number yet. For teams trying to re-sign FA's right now or else decide whether they want to use the franchise tag (which teams can start using next week), you sorta need to know what the salary cap is in order to structure the contracts accordingly and/or make decisions on the tag. This just seems so utterly haphazard and is getting in the way of teams being able to fully move on offseason plans. 

Edited by SalvadorsDeli
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