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NFL salary cap will increase to $116 million

10:31 AM CST on Wednesday, December 6, 2006
By RICK GOSSELIN / The Dallas Morning News

IRVING ? The NFL informed its teams Wednesday that the salary cap will increase to $116 million in 2008 ? up from the $109 million cap figure of 2007.

The NFL informed teams of the increase for future planning purposes at its annual labor seminar. Counting benefits, the total player costs for each team will be $130 million in 2007 and $139 million in 2008.

The NFL salary cap this season is $102 million. That represents 57 percent of the league's revenues. The players will receive 57 percent again in 2007, but it jumps to 57.5 percent in 2008.

E-mail rgosselin@dallasnews.com

The bubble's gotta burst at some point... there's just no way this rate of growth can be sustained.

That said... this is GREAT news. With it unlikely that we'll see any kind of cap relief from or for Bentley and Baxter, we're going to need some more cap room down the road to do some shopping as well as re-sign some of our emerging stars to long term deals.

i don't see it as great news at all.
i see the FA price tag sky rocketing now that EVERYbody can sign one. i don't like the thought of this at all.

[color:"white"]

I said the exact same thing about MLB a couple of years ago. So where are we? Suddenly, Manny Ramirez, he of the no defense and petulant attitude, is suddenly a "bargain" and is about to be traded. People like Adam Eaton, who's never posted more than 12 wins or a sub 4.20 ERA, just got roughly $30 million over 3 years (I think that's the number), and Ted Lilly just got $40 million over 4 years. Ted Freakin' Lilly.

The NFL is still the big fish in the pond, and the money isn't drying up. You'd think that the bubble would have to burst.......right? right? I wonder...[/color]

the thing is, who cares?

What the team pays is irrellevant as long as we can fit what we want to buy into our available cap space. The scale of things is just a bit larger than it was before, that's the only difference.

Thats a big jump....and i agree with the other poster it needs to stop and i cant see why it has to increase EVERY year.

Is it in a bargaining agreement or something? <img src="/images/graemlins/confused.gif" alt="" />

Yes, as the article points out, the Salary Cap is directly tied to league revenues as a percentage of total shared revenues: "The players will receive 57 percent again in 2007, but it jumps to 57.5 percent in 2008.".

So, the more the league makes, the higher the salary cap for each team.

The salary cap increase seems inevitable according to wiser heads than mine on this board....but does anyone else get the feeling that the NFL is heading towards oversaturation of the market and may actually see its revenue DECREASE in coming years?

well, that's a big part of why the league is already taking steps to expand viewership outside of the U.S. and is being such a money grubbing fiend with NFL Network royalties from cable/satellite providers. The real money is in TV contracts, so as long as they can keep getting networks to pay billions for the right to air the games, they have a steady guaranteed stream of money.

TV ratings would have to drop to XFL levels for them to lose any significant amount of money, and even then it wouldn't likely happen until the next contract time comes around.

The cap being a percentage of revenues and not fixed values, it would of course auto-correct itself, but a decrease in the cap would likely force more than a few teams to make some hard decisions, and it would definitely lead to a shakeup in the rankings.

Look for higher ticket prices.

I went to the Browns board the other night and pulled up a pricing by section page, and it had been taken down.

My guess is the powers that be have in down in preperation for the new page...and a new page would indicate something is going to change.

How many jerseys are sold each year? How many people would notice a .50 or a $1 increase in the price of the jersey?

$2 on a ticket, .25 on a soda or hotdog?

The bubble doesn't burst until the people quit buying the products.

[color:"white"]the thing is, who cares?

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as usual it will be the ones who can afford it the least. the fans......

then don't buy the product.

But the biggest driving factor in the salary cap is not ticket prices or merchandising, it's TV revenues. It'll affect us, but only to the degree we allow it to.