For the second straight offseason, the Chiefs confront uncertainty about the precise amount of the upcoming league-wide salary cap. They’ll have another $5 million with which to work, but that comes with some major caveats.
The NFL on Thursday morning sent a memorandum to all 32 teams announcing that the minimum salary cap per team, or “floor,” has increased from a collectively bargained $175 million to at least $180 million, ESPN’s Adam Schefter reported.
Both of those figures represent a precipitous drop from the $198.2 million actual cap of 2020.
Last year, because of revenue losses amid the COVID-19 pandemic, the NFL and NFLPA agreed to a $175 million cap minimum for 2021. That figure meant the Chiefs would be anywhere from $21 million to $23 million over the cap.
League-wide attendance in 2020 plummeted to 1.2 million, a decline of 17 million from 2019, because of coronavirus restrictions. The Chiefs were one of 19 teams that allowed at least some fans through the turnstiles in 2020; 13 allowed none.
Once finalized, the 2021 cap figure will take into account attendance revenues from last season as well as the uncertain revenue picture for next season. Arrowhead Stadium operated at a maximum fan capacity of 22 percent in 2020; it’s not yet known, as vaccinations slowly roll out and the pandemic continues, how many fans might be allowed at home games this fall.
As emphasized in the league’s Thursday correspondence, the exact 2021 cap amount has not yet been finalized, either. A pending league-wide TV deal will affect that bottom line, for instance. But there’s no doubt it will fall sharply from the actual cap under which all teams operated in 2020.
“This is not the final Salary Cap for the 2021 League Year, which will be set following review of final 2020 revenue figures and other audit and accounting adjustments,” the memorandum read. “This agreement simply increases the minimum 2021 Salary Cap by $5 million per club, from $175 million to $180 million.
“We will promptly advise all clubs as soon as the Salary Cap is set.”
Even with an additional $5 million or so in cap room this coming season, the Chiefs have some number-crunching ahead of them.
Chiefs general manager Brett Veach said in the days leading up to the Feb. 7 Super Bowl that he and his staff, specifically cap gurus Brandt Tilis and Chris Shea, were hard at work behind the scenes projecting cap models between $175 million and $195 million.
“They tell me anything over $185 (million), we’re in pretty good shape,” Veach said at that time.
A $180 million cap minimum provides a general starting point for the Chiefs between now and the league’s establishment of an official 2021 salary cap by the time the NFL’s new calendar year begins on March 17. The new calendar years heralds the beginning of free agency.
The Chiefs were creative in dealing with their cap space in 2020. Last year, Veach restructured some large existing contracts, including those carried by defensive end Frank Clark and right guard Laurent Duvernay-Tardif, in order to gain crucial cap relief. Those moves enabled the organization to sign key free agents in addition to securing lucrative long-term deals with quarterback Patrick Mahomes, defensive tackle Chris Jones and tight end Travis Kelce.
With 18 players scheduled to become unrestricted free agents this year, including wide receiver Sammy Watkins and cornerback Bashaud Breeland, the Chiefs must once again find resourceful ways of working within the cap to address an evolving roster.
Experience will help. From dealing with limited cap space in 2020 to adapting to an NFL Draft held virtually because of the COVID-19 pandemic, the past offseason should aid the Chiefs’ efforts at adjusting as necessary once the precise league salary cap figure is unveiled.
“I really think last year’s offseason kind of prepared us for every scenario,” Veach said.
This story was originally published February 18, 2021 10:16 AM.
