NFL informs teams of significant salary cap increase for 2025

The NFL informed all 32 teams Wednesday that the 2025 per-team salary cap will see a significant increase.

Per Dan Graziano of ESPN, the 2025 salary cap will fall in the range of $277.5 million to $281.5 million, way up from last year’s $255.4 million. In total, the cap will have increased by $53 million over the last two years.

The league sent a memo to the teams explaining why the cap number is not yet finalized.

“As you know, the 2024 Player Cost and Salary Cap amount was reduced by $10 million per club, due to a $9 million smoothing adjustment and an incremental $1 million being added to Performance Based Pay,” the memo read, via Graziano. “The parties agreed that the NFLPA would have the unilateral right to recover up to 50% of the $9 million deferral in the 2025 League year, with any remaining amount being recovered in the 2026 League Year.

“We presented a range of options to the NFL Players Association in December; however, we still have not been advised on how the Union plans to reinstate the deferral for the 2025 League Year. We expect to conclude negotiations over the 2025 Player Cost and Salary Cap amount next week but can provide a projected Salary Cap range of $277.5-$281.5 million per Club that can be used in your planning leading to the Combine. Keep in mind that this range is subject to change based on further negotiations with the NFL Players Association.”

NFL salary sap continuing to explode

With the salary cap increasing year-by-year, teams can spend big money and players’ salaries will continue to skyrocket. Just this past September, Dallas Cowboys quarterback Dak Prescott became the highest-paid player in NFL history after signing a four-year, $260 million extension.

But the salary cap increase will also be beneficial to teams like the New Orleans Saints, who enter the offseason roughly $51 million over the cap, according to Spotrac.

It’s clear the NFL isn’t losing any steam whatsoever with record ratings being reported every season and an 11-year, $111 billion media rights deal in place through 2033. Translation? Expect the salary cap to continue moving in an upward direction.