Skip to main content

Capping Excellence: The NFL Salary Cap


The first salary cap in NFL history was imposed in 1994 at $34.608 million, the equivalent of $57.163 million today.

The current salary cap in the NFL is set at $167 million per team, meaning a near tripling of the cap since its introduction.


According to theory backing the artificial price ceiling, the salary cap offers two reported benefits to the NFL: controlled costs and near-parity between teams. 

How successful has this proved to be, and what are some of the externalities spawning from this restriction?

Well, the low-hanging fruit here appears to be the unforeseen consequences of the salary cap era, which oddly enough share a lot in common with the greater American economy: the NFL has increasingly become artificial, homogenized and even sterilized.

Of course, the salary cap was originally born out of fabulous intentions, aspiring to neutralize the playing field between major and junior market teams.

Whereas teams like the Detroit Lions and Buffalo Bills might otherwise struggle to attract the same level of talent as the Dallas Cowboys and the New England Patriots, the salary cap ensures that teams are at least at parity on the amounts of cash they can dispense for that talent.

However, this appears to entirely overlook the purpose of those investments from the very consumers who subsidize those teams: they want to see the best version of their team on the field, whether they are watching from the stands of a billion-dollar stadium or the comforts of their own home.

The salary cap causes not only an undervaluation of the talent pool by suppressing the sums available to them for any given year; it effectively distorts the financial calculus for every team.

Akin to college campuses across America, where unfathomable sums of government-backed loans and direct subsidies persistently bid up the prices of tuition while failing everywhere to represent the real value of that tuition while ornate facilities and cafeterias pop up every year, the NFL has invested far more in aesthetics and football-irrelevant ventures which fail to proportionately, or remotely, promote the interests of their treasured consumer base who remain desperately attached to the declining traditions of their team.

What’s more, each team’s coaching staff pours tremendous quantities of energy and countless hours of labor into the development of their programs, their playbook and athletes, tailored each year around their present rosters.

Not only does the staff coach up these players when they arrive on site, but they heavily scout their athletes to find diamonds in the rough, such as Chris Canty, Tony Romo, Dak Prescott and the famed sixth-round pick out of the University of Michigan, Tom Brady. 

All of these endeavors come at a cost not directly expressed in monetary terms at the onset, while the expression of their success only later manifests to their own detriment through a weighty appreciation of that athlete’s market value. 

And of course, because of the salary cap, the team may shoulder this weight for only a limited number of athletes before reaching the limit. 

In this case, the team is tacitly incentivized to restrict the budding athlete’s performance before locking him into a long-term contract, otherwise jeopardizing millions of dollars in cap space or losing the developed athlete to another team whose cap room enables a greater investment.

In this case, the athlete then joins a team that must restructure its playbook to accommodate a new athlete, while the athlete and fans must settle for an arrangement of lower quality, in terms of both contract value and football outcomes.

To deliver this point, let’s focus on the case of nine-time Pro Bowler DeMarcus Ware, drafted by the Dallas Cowboys out of Troy University in the first round of the 2005 NFL Draft.

Before the addition of DeMarcus Ware, the Cowboys employed a 4-3 defensive scheme. 

Upon his arrival and drafting additional defensive talent, including Marcus Spears, Kevin Burnett, Chris Canty and Jay Ratliff, all from that same 2005 NFL Draft, the Cowboys switched to a 3-4 defense to accommodate their new talent.

In the following three drafts, the Cowboys would then enlist the likes of Jason Hatcher, Anthony Spencer and Mike Jenkins, all of whom would reach the Pro Bowl at least once in their careers.

By the beginning of the 2015 season, every one of these athletes had moved on to another team.

Another example of the salary cap’s effects can be traced back to the 2007 NFL season, when the Dallas Cowboys finished with thirteen wins and only three losses, sending a record thirteen players to the Pro Bowl. 

Just three seasons later, only four of those players remained on the team’s roster, as the others left in pursuit of bigger contracts.  

Part of the fandom experience is following the progress of developing talent.

This enables the fan to engage at a far more intimate and personal level, as he or she develops a sort of relationship with the players on the field. 

As fans, we purchase the jerseys of teams but also players, and we popularize chants and nicknames for athletes and core members of the team. 

Remember the Doomsday Defense, the Steel Curtain, the Big Blue Wrecking Crew, the Bruise Brothers, and the Purple People Eaters?

These were all made possible in a cap-less era, when developed talent remained with their teams and specifically honed their skills alongside familiar faces within familiar concepts.

Where we find transient athletes moving between teams, we cannot account for the frictional cost of time lost to learning a new playbook and the idiosyncrasies of a new team. 

Likewise, we cannot account for the learning curve for coaches becoming acquainted with their new athletes.

One of the greatest misfortunes about the salary cap is that one player’s achievement can simply be the manifest expression of the success of the whole unit, and where we find one athlete’s excellence, we might also find that this individual purely complements the whole.

And so the acclaimed athlete eventually moves on to another team of inferior rank, instead of continuing to build the program in which he had flourished, and his new team fails to complement him with a competent surrounding staff as their former top talents also left for other lacking teams filling major roster gaps.

And so the vicious cycle continues, as the NFL salary cap aspires to flatten the terrain of the playing field to mediocritize the league, make the games more about fanfare and the stadiums, and sell jerseys of players who will be gone in three to four seasons.

Comments

Popular posts from this blog

The Deal with Tariffs

Over the course of President Trump’s two terms, there has been much talk around the matter of tariffs — taxes on imported goods. However, much of the talk seems to miss the point. After all, for those of us who seek the truth, it’s not really a question of whether tariffs are ‘good’ but whether they are preferable to other kinds of taxes — assuming, of course, that taxes are the rule, as certain as the eventuality of death. First, let’s establish the theory: beyond the generic purpose of revenue generation for the state, the institution of tariffs ordinarily serves to  reduce (or discourage) imports by making them artificially more expensive, while encouraging domestic production by making domestic products more appealing on a relative price basis. In the realm of foreign affairs, tariffs are instituted or threatened in the course of international trade negotiations in order to signal dissatisfaction with existing trade barriers and to push for more favorable trade terms; or in ord...

Summarizing the “Separation of Church and State”

There is much confusion surrounding the concept of the “separation of church and state”; much of it likely born out of the steep secular decline in religious affiliation across recent generations, with particular emphasis among atheists and anti-deists.  While many have hastened to leverage this language (“separation of church and state”) in order to condemn or censure religious values — particularly those which are Christian — where they have carried influence in public life (i.e. prayer in schools, teachers covering lessons from the Bible, government representatives appealing to God, coinage bearing the words “In God We Trust”), the truth is that this “separation” was never expected to completely eliminate religious practice or religious sentiment from all matter of public life. In fact, religion was so deeply enmeshed in American life during the eighteenth and nineteenth centuries that the French magistrate and prison reformer Gustave de Beaumont, during his nine-month tour of A...

Rethinking “Forgiveness”

Forgiveness is often hailed as the ultimate moral virtue — a cleansing of the soul, a sign of spiritual maturity, and the first step toward healing fractured relationships. But in modern discourse, particularly in religious and pop-psychological circles, “forgiveness” has extended beyond the sensible, beyond etiquette, and beyond justice and useful application. The concept of “forgiveness” has been stretched far outside of the realms of that which is easy to “forgive”, that which is merely inconvenient or annoying, or relatively innocuous or insignificant, where “forgiveness” is merely part of tolerating people’s human shortcomings, their mistakes and  their accidents , or extending ‘mercy’ to those who’ve disrespected or “trespassed against us” (and have since offered sincere apologies and the necessary restitution). This reimagined kind of “forgiveness” has taken on a dangerously idealized form ignorant to or dismissive of the laws and limits of human nature and the potential imp...

Their Lives, Their Fortunes, and Their Sacred Honor

A  recent YouTube post by the political organization PragerU betrays the truth about the American Revolution. It goes as follows: “Britain spent a fortune defending the colonies in the French & Indian War. America’s response? Boycotts, protests, rebellion. Ingratitude that sparked a revolution.” This description of history is not just a reductive reframing of the issues; it is a crude and provocative statement insulting the intelligence of Americans who remember their history and disrespecting the men who staked everything in their noblest of causes during the American Revolution.  One commenter in the comments section even sided with PragerU, taking to task any who dares criticize the post: “Are you incapable of creating scenarios from the opposite side?” Unfortunately for this commenter, true history isn’t about “creating scenarios”; it’s about understanding what actually happened — the totality of the circumstances. So, let us do just that: let’s get straight to the fac...

Cullen Roche's Not So "Pragmatic Capitalism"

In his riveting new work Pragmatic Capitalism , Cullen Roche, founder of Orcam Financial Group, a San Diego-based financial firm, sets out to correct the mainstream schools of economic thought, focusing on  Keynesians, Monetarists, and Austrians alike. This new macroeconomic perspective claims to reveal What Every Investor Needs to Know About Money and Finance . Indeed, Roche introduces the layman to various elementary principles of economics and financial markets, revealing in early chapters the failed state of the average hedge fund and mutual fund operators  —  who are better car salesmen than financial pundits, Roche writes  —   who have fallen victim to the groupthink phenomenon, responsible for their nearly perfect positive correlation to the major indexes; and thus, accounting for tax, inflation, and service adjustments, holistically wiping out any value added by their professed market insight.  Roche also references popular stu...

Fischer: Tortured in the Pasadena Jailhouse (featuring the Morals of Chess by Benjamin Franklin)

Buy your copy today of  Fischer: Tortured in the Pasadena Jailhouse (featuring the Morals of Chess by Benjamin Franklin) , available at  Amazon  and Barnes & Noble . The name Bobby Fischer reigns supreme in the world of chess, yet there was a time when it hogged headlines, struck fear into the eyes of the competition, and was on the lips of folks all across the globe. More than the face of the centuries-old game, there was a time when Bobby Fischer was synonymous with the cause and spirit of America, that his moves on the chessboard sought more than checkmate but to pit the strength of “raw-boned American individualism” against “the Soviet megalithic system” which had come to dominate the game of chess at the same time it dominated Cold War politics. Fischer’s triumph over the USSR's Boris Spassky in the ’72 World Chess Championship would ultimately be celebrated as a symbolic and diplomatic victory for the U.S., but, as time would tell, it would not mean the American...

The ‘Values’ Problem in the NFL

Every year, there is talk across the major sports leagues about which players are due for contract extensions and huge paydays. The chatter is seemingly endless, and it often seems to cast a shadow over the sports themselves — talking heads arguing and debating, insisting that so-and-so is going to ‘reset the market’ or so-and-so is demanding the ‘market rate’ for his position.  This is where the conversation goes awry, economically speaking.  The truth is that players  are not commodities: they are neither fungible nor interchangeable. Each player brings a distinct skill set, and each team operates within a unique scheme, meaning that each player’s value is situational rather than universal. There is, thus, no ‘market rate’ for any player or position; contracts exist in relation to each team’s particular situation, and every dollar spent on one player (in a salary-cap league) directly reduces the resources available for others — where ‘overspending’ in any case necessari...

The People's Banner: Why the “Thin Blue Line” Flag Betrays the Spirit of the Stars and Stripes

The American flag — proudly known as the Stars and Stripes — is more than a banner of colors stitched together. It is a living symbol of rebellion, unity, and the sovereignty of the people. It was never originally the flag of a government, but of a movement; not a mark of officialdom, but of revolution.  Having evolved from the Continental Union Flag, its stripes — with their roots in the "rebellious stripes" of the Sons of Liberty — represent resistance to abusive power, a stand against imperial overreach, and a declaration that legitimate authority flows from the consent of the governed. In this light, the proliferation of the “Thin Blue Line” version of the American flag is not merely a modification of a unique American symbol; it is a mutilation of the flag’s fabric and its meaning. It transforms a people’s flag into a government’s flag, in direct contradiction to its foundational ethos. The Stars and Stripes emerged during the crucible of the American Revolution. Designe...

Death By Cop

A  recent post from a popular YouTube channel has provided more evidence of that which is blatantly obvious in modern America, at least to those who are willing to face the truth: the fact that cops, as with the governments they serve, are the enemy to goodness, justice, and American liberty.  This latest post is from The Civil Rights Lawyer, a channel (by a practicing civil rights lawyer) documenting police misconduct and civil rights violations since the year 2020. This time, it is a case of an elderly man, a former pastor suffering from dementia, murdered at the hands of “ the very people who were supposed to protect and care for him”: “Officers were dispatched to a business to assist an elderly customer who appeared to be suffering from dementia. At the scene, officers found him extremely confused. He told them the year was 1948 and that the president was George Washington. So they call his daughter to come pick him up. So how did things go so terribly wrong that day, tha...

“Stolen Land”

The claim that America was built on “stolen land” is not only a politically-loaded oversimplification, but a deliberately narrow framing that keeps America — and America alone — under perpetual moral scrutiny. It collapses fundamentally different actors, motives, and historical processes into a single accusation, thereby obscuring more than it explains. At a macro political level, land claims have  always  been in flux. Long before European contact, tribes across North America routinely warred over territory, resources, hunting grounds, and waterways. Claims were seasonal, contingent, and often overlapping, shaped by migration patterns, environmental conditions, and intertribal treaties that themselves shifted over time.  Had Europeans never settled in America, this dynamic would have continued to dominate; it was the prevailing condition of the continent. From this perspective, “ownership” has never been an abstract moral constant but a function of enforceability under a...