NFL salary cap rules

The NFL salary cap is a limit on the total amount teams can spend on player salaries each season, designed to promote competitive balance. It includes salaries, bonuses, and other compensation, but excludes certain benefits. Teams must stay within this cap when signing, re-signing, or trading players, and cannot exceed it without facing penalties. The cap adjusts yearly based on league revenues. Teams often structure contracts with signing bonuses and incentives to manage cap impact, spreading costs over multiple seasons while complying with the overall limit.