How Does the NFL Salary Cap Work?

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for NFLSportChannel.com

Published: July 17, 2009

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... clear.

The most important of these is that NFL contracts are not guaranteed. A NFL team can cut a player during his contract and the remainder of that contract does not count against the cap.

There is one notable exception to this rule. Let’s say a player signs a four-year deal, with a $20 million signing bonus. Under NFL rules that 20 million dollars would be prorated against the cap over the life on the contract.

Meaning, the $20 million bonus counts for $5 million per year against the cap for the life on the contract. If the player is cut before the end of the deal, say in year three, then the team is penalized the remaining amount of the signing bonus on that year’s cap.

In this case, cutting the player would count $10 million against the team cap for that year.

In essence the NFL salary cap, as negotiated by the players Union in the current collective bar...

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Article Source: BleacherReport.com


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