In the 1970s, the Pittsburgh Steelers blossomed into a dynasty that won four Super Bowl championships over a six-year span. Their success can largely be attributed to the continuity of their all-star roster, which included nine Hall of Fame players who played together for eight straight seasons.
Retaining that much talent is impossible in the modern day due to the salary cap, which reshaped the NFL after it was implemented in 1993. Today, teams have to strike a balance and build a winning roster without falling into financial disaster.
With free agency approaching, general managers across the league are attempting to create cap space to either retain their own talent or bolster their roster on the open market. Fortunately, they’ll receive a boost from a historic increase in the cap ceiling.
NFL salary cap sees a record-high increase in consecutive years
The NFL and NFLPA have agreed to a 2025 salary cap of $279.2 million per club, according to NFL Operations. That figure — a $23.8 million increase from last year’s salary cap of $255.4 million — sets a new record high.
The salary cap has increased annually, and it now stands over $100 million higher than it was in 2018, when the figure was just $177 million. In 2005, the salary cap was just $85.5 million.
The salary cap is calculated based on a formula outlined in the collective bargaining agreement between the NFL and the NFL Players Association. Currently, players are entitled to 48 percent of the defined gross revenue, which includes the league's earnings from network contracts, ticket sales, merchandising, naming rights, and advertising. After determining the total gross revenue, 48 percent of that amount is divided among the league's 32 franchises, which establishes the individual salary cap figure for each team.
Last year, the salary cap saw an unprecedented increase of $30 million, partially due to new network deals and recovery from the COVID pandemic. The salary cap increases are particularly helpful for the Cincinnati Bengals, who are attempting to retain three star players, and the New Orleans Saints, who currently have a deficit of $47 million.
Teams who pay superstar talent also have to start unproven rookies elsewhere on the field. Some teams, like the Philadelphia Eagles, have handled that task masterfully. Others, like the Saints, have fallen apart with a mismanaged budget.