What’s next for the NFL?
The NFL and NFL Players Association reached an agreement Tuesday, one that will allow the league to increase its salary cap by $1.9 billion to $62.9 million in 2018.
The deal, which was signed by NFL commissioner Roger Goodell, will increase the NFL salary cap from $65.1 million to $72.8 million and allow the NFL to spend $1 billion in 2017-18 to offset the salary cap increase.
The cap increase, however, is a non-binding one that cannot be rescinded by Goodell or his players union.
Goodell and the players union have been negotiating on the matter for months.
The new salary cap will be a major part of the league’s financial planning for the 2018 season.
While the NFLPA has made it clear that it does not support the new cap, the league has long said it is willing to spend as much money as it wants on salary cap improvements.
The league will spend $2.8 billion on its training camp program and $3.9 bilion on its player development program.
Those expenditures will be funded through the NFL’s two-year, $11.9-billion cap, which will be set at $58.5 million.
The NFLPA will receive $1,966,000 from the league for each NFL player.
The $1 million salary cap contribution will go toward salary cap enhancements for the next two seasons.
The salary cap in the NFL is set at a maximum of $60 million per year.
However, the NFL recently approved the league allowing teams to spend up to $52.5 mln on cap improvements, which the league plans to use as a revenue source.
The $1bn increase is also a big step forward for the league, which has been struggling to keep pace with inflation.
The league has spent more than $20bn on salary and player bonuses since 2010, and last year, it spent $22bn.
The NFLPA, which represents the NFL players, had sought $10bn in cap increases in 2016 and 2017.
The Associated Press contributed to this report.