NFL salary cap increases
Michigan
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in Sports Talk
Take a good look at the numbers.
No matter how big they seem, they'll look puny in just a few years.
A new labor deal, agreed to in early March, sent the NFL salary cap to heights previously unthinkable and set the table for further growth.
"We've already seen a very substantial increase and that was reflected in a very active free-agent period," says agent Tom Condon, whose clients include Indianapolis Colts quarterback Peyton Manning and San Diego Chargers running back LaDainian Tomlinson. "I think we will continue to see player salaries increase. Teams can utilize the cap any way they choose and spend what their individual budgets allow."
The salary cap for the upcoming NFL season is $102.5 million per team, an increase of $17 million above the 2005 figure. How big an increase is it? When the salary cap was set at $75 million in 2003, it was also a $17 million increase — from 1999 ($57.3 million). The cap was $52.4 million in 1998, so it has almost doubled in eight years.
The popularity of the game and the players and the NFL's ceaseless efforts to market every aspect of it make this a lucrative operation for all parties.
"The revenues are continuing to grow and the salary cap will continue to grow alongside it," says agent Neil Schwartz. "Therefore, players make more money, owners make more money and so do general managers, coaches and assistant coaches. Everyone reaps the fruit."
One of the first reapers in free agency this offseason was center LeCharles Bentley, whom Schwartz represents. Bentley left the New Orleans Saints in March for the Cleveland Browns and a contract worth $36 million for six years, most ever for a center.
The NFL Players Association's research department says the average player salary rose 5% in 2005 to $1.4 million and that the average starter earns $2,259,000. The median salary for all starters was $1.7 million, an increase of 17%. The average for quarterbacks, running backs and offensive tackles was in excess of $3 million.
Among the big earners in 2005: Quarterbacks Michael Vick and Matt Hasselbeck. Vick collected $23.1 million from the Atlanta Falcons and Hasselbeck, who led the Seattle Seahawks to the Super Bowl, earned $19 million.
Offensive linemen did not fare badly, especially prized left tackles. Orlando Pace of the St. Louis Rams scored $18 million from the St. Louis Rams and Seattle paid Walter Jones $17.7 million.
Those figures include total signing bonus dollars, even if the contract defers some of the payments. While such bonuses are prorated over the life of the contract for salary-cap purposes, they are counted here in the year they are earned.
Therefore, Manning's representation in our database at a salary of $668,520 discounts the $34.5 million signing bonus given him in 2004 when he signed a seven-year deal worth $98 million. The low base in the second year was to benefit the Colts' cap.
Fret not for Manning. His 2006 compensation: $10 million.
There's no true method for determining the highest-paid player. Any analysis that computes an average per year figure for the life of contract builds in the numbers agreed to for future years that are not guaranteed and that will likely not be paid. In most cases, a veteran player reaching a season with a high base salary will be asked to extend his contract and exchange his base salary for a signing bonus. Many veterans also restructure their contracts at a lower salary or opt to be released instead.
No matter how big they seem, they'll look puny in just a few years.
A new labor deal, agreed to in early March, sent the NFL salary cap to heights previously unthinkable and set the table for further growth.
"We've already seen a very substantial increase and that was reflected in a very active free-agent period," says agent Tom Condon, whose clients include Indianapolis Colts quarterback Peyton Manning and San Diego Chargers running back LaDainian Tomlinson. "I think we will continue to see player salaries increase. Teams can utilize the cap any way they choose and spend what their individual budgets allow."
The salary cap for the upcoming NFL season is $102.5 million per team, an increase of $17 million above the 2005 figure. How big an increase is it? When the salary cap was set at $75 million in 2003, it was also a $17 million increase — from 1999 ($57.3 million). The cap was $52.4 million in 1998, so it has almost doubled in eight years.
The popularity of the game and the players and the NFL's ceaseless efforts to market every aspect of it make this a lucrative operation for all parties.
"The revenues are continuing to grow and the salary cap will continue to grow alongside it," says agent Neil Schwartz. "Therefore, players make more money, owners make more money and so do general managers, coaches and assistant coaches. Everyone reaps the fruit."
One of the first reapers in free agency this offseason was center LeCharles Bentley, whom Schwartz represents. Bentley left the New Orleans Saints in March for the Cleveland Browns and a contract worth $36 million for six years, most ever for a center.
The NFL Players Association's research department says the average player salary rose 5% in 2005 to $1.4 million and that the average starter earns $2,259,000. The median salary for all starters was $1.7 million, an increase of 17%. The average for quarterbacks, running backs and offensive tackles was in excess of $3 million.
Among the big earners in 2005: Quarterbacks Michael Vick and Matt Hasselbeck. Vick collected $23.1 million from the Atlanta Falcons and Hasselbeck, who led the Seattle Seahawks to the Super Bowl, earned $19 million.
Offensive linemen did not fare badly, especially prized left tackles. Orlando Pace of the St. Louis Rams scored $18 million from the St. Louis Rams and Seattle paid Walter Jones $17.7 million.
Those figures include total signing bonus dollars, even if the contract defers some of the payments. While such bonuses are prorated over the life of the contract for salary-cap purposes, they are counted here in the year they are earned.
Therefore, Manning's representation in our database at a salary of $668,520 discounts the $34.5 million signing bonus given him in 2004 when he signed a seven-year deal worth $98 million. The low base in the second year was to benefit the Colts' cap.
Fret not for Manning. His 2006 compensation: $10 million.
There's no true method for determining the highest-paid player. Any analysis that computes an average per year figure for the life of contract builds in the numbers agreed to for future years that are not guaranteed and that will likely not be paid. In most cases, a veteran player reaching a season with a high base salary will be asked to extend his contract and exchange his base salary for a signing bonus. Many veterans also restructure their contracts at a lower salary or opt to be released instead.
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Comments
Revenues can't continue to go up exponentially, and I fear the next CBA that comes around will have the players expecting another rise in the cap. It seems they've set themselves up for expecting another cap raise.