The NFL and the NFL Players Association have agreed to reduce the salary cap for 2021 by 8% to USD$182.5 million (AUD$234.7 million) per team.

The 2020 NFL salary cap was set at USD$198.2 million (AUD$254.9) before the COVID-19 pandemic led to reduced revenues for the league and a 92% decrease in fan attendance due to the pandemic.

This salary cap decrease marks the first time the cap limit has decreased since 2011, with every previous season since 2011 recording rising cap limits in line with rising league revenues.

NFL franchises were reportedly expecting the final salary cap figure to be in the range of USD$180 million (AUD$231.5 million) and USD$185 million (AUD$238 million), after being told by the NFL the cap would not drop below USD$180 million.

With the NFL reportedly nearing new broadcast deals, and fan attendance expected to be increased further as the COVID-19 vaccine is rolled out further across the US, the drop in the salary cap is expected to bounce back for the 2022 NFL season.

Currently, 16 teams are now over the total salary cap.

NFL teams have until next Wednesday to ensure they are in line with the new salary cap before the next season begins.

This new salary cap figure comes after it was revealed the NFL’s revenue dropped by USD$4 billion (AUD$5.1 billion) in 2020 due to COVID-19.

According to Sports Business Journal, 2020 had been projected bring in USD$16.5 billion (AUD$21.2 billion) in revenue for the NFL after the 2019 season saw the league record USD$16 billion (AUD$20.5 billion) in revenue.