NFL Teams face a sudden $40 million cut to the salary cap of 2020. How can the LA Rams achieve that? Look to players signed after the NFL Draft.
The LA Rams 2020 salary cap woes just keep on growing. In a season of uncertainty, the last thing NFL teams need is to discover at point-blank range that the 2020 salary cap may suddenly plunge by an amount of up to $40 million this year. Why the drastic cuts? We’ve been citing the plunge of NFL revenue for weeks, and the NFL projections have finally delivered on a per-team impact for 2020.
Both the NFL and NFLPA are motivated to act now. The latest CBA links NFL salary caps to the previous year’s revenue. In a “pay as you go” mode, the significant drop in the 2020 revenue will have a drastic impact on team and player finances next season. While this will impact all 32 NFL teams equally in terms of dollars, the impact of a salary cap reduction will hurt some teams far more than others.
The economic proposal the NFL sent the NFLPA on Tuesday removed the 35% salary escrow provision — but instead would’ve slashed each team’s player costs by $40 million in salary cap and/or benefits in 2020, per sources. Player leadership strongly opposed to such a short-term hit.
— Tom Pelissero (@TomPelissero) July 17, 2020
A $40 million cap hit in 2020? Yes, you are reading that right.
Pay now, or later?
This is an issue the NFL-NFLPA faces now. A Pay-me-now-or-pay-me later scenario has developed, and now everyone must agree or face the uncertain consequences of failing to act.
The reason that the players should also want cap clarity before training camp is because if teams go into camp thinking the cap could drop by $70+M in 2021 you will see a number of mid level vets likely cut this summer to build space for the future.
— Jason_OTC (@Jason_OTC) July 17, 2020
So the LA Rams face a very common 2020 theme once more. How can the team shave out $40 million in salary cap expense this season? More importantly, how can the team remain competitive in the process?