Salary Cap - Dumbed Down Version????

[Kyle W]

Hey Gentlemen,

I am wondering how the Salary Cap adjusted from year to year?  I read the article but wanted to know if someone could dumb it down for me really fast?  Like how is it adjusted and why do some teams have higher than others?  I think that is cool, but I want to make sure I understand why.  Appreciate in advance for the insight!

[BHows]

Hopefully, someone here will be able to but my short answer is "no", I can't explain it. The actual rule is here :
https://www.profsl.com/smf/index.php/topic,234290.0.html
I'm a retired pipefitter so I know some geometry but I have no background in this. Cris handles this, I'm sure he'll chime in!

[ldsjayhawk]

75% of your salary cap is based on current cap

25% is based on your standings in the league.  For example, if you finish 1st on a season, 25% of your cap calculation is based on the highest payroll. 

This is calculated each year and a three year average is used to calculate the final cap number.

For example, if you finish 1st and Philadelphia has the highest payroll at 150 for that season, the calculation would look like this:

37.5m (150 x .25) is added to 91 (120.75 x .75).  The total payroll calculation would be 138 after rounding.

If your cap numbers are 115, 121 & 138.  The three year average is 124.  This would be the new cap calculation.  If this were your 2026 season, the 124 cap would be the 2028 salary cap.

[Kyle W]

Thank you guys.

I understand a little better now.  Just to clarify, is it a 3 year average that determines the year salary cap?  That would make sense inorder to eliminate extreme volatility.   Pretty much keep winning and you get a higher salary cap. 

There is no carry over from year to year or any punishment for signing minors to big bonuses correct?

[BHows]

Nope, it's use it or lose it and no limit on signing bonuses

[Kyle W]

Perfect, thank you!

[ldsjayhawk]

Thank you guys.

I understand a little better now.  Just to clarify, is it a 3 year average that determines the year salary cap?  That would make sense inorder to eliminate extreme volatility.   Pretty much keep winning and you get a higher salary cap. 

There is no carry over from year to year or any punishment for signing minors to big bonuses correct?

Yes, that's correct.  Each year is calculated and then the three year average is used for the cap.  You are correct that it is designed to prevent volatility.

Just to highlight how well that works, the highest increase last season was 6% which ranged down to a 1.5% drop.  So, the system definitely works and generally the the 20% cap is not needed.  Most team payrolls trended up slightly.