The NFL has informed every team that this year's salary cap will be set at $182.5 million, a 7.9 per cent decrease from last season, per multiple reports Wednesday.
Last year's salary cap was $198.2m before the COVID-19 pandemic wreaked havoc with league revenues, following on from 2019's $188.2m cap and 2018's $177.2m cap.
This year's cap was set in conjunction with the NFL Players Association based on 2020 results and 2021 projections as owners anticipate a significant rebound in attendance from the capacity restrictions last season. Attendance in 2020 was slashed 93 per cent due to the pandemic.
An NFL-NFLPA agreement to spread out the players' losses over three years allowed the cap to be higher than expected.
Last month the league and NFLPA set the floor at $180m, up $5m from their previous agreement.
The new league year begins March 17 and coincides with the start of free agency, before which the impact of the salary cap dip could be reflected by teams shifting veteran contracts.
Hopes of increased attendance in the coming season along with new broadcast television and streaming deals mean the cap is expected to continue on the ascent it had been experiencing prior to the coronavirus pandemic.