Section 2Additional Salary Cap Room
For the 2021 League Year only, and only if the League elects to play seventeen (17) regular season games in that year, and only if the 2021 Player Cost Amount is less than 48.5% of Projected AR for the 2021 League Year, each Club may elect to receive a credit to Team Salary not to exceed: (1) the difference between: (a) a baseline Player Cost Amount calculated at 48.5% of Projected AR for the 2021 League Year; and (b) the Player Cost Amount for the 2021 League Year (if lower); divided by (2) the number of Clubs in the League. Clubs will be notified of the credit amount, if any, upon the finalization of the Salary Cap for the 2021 League Year. No credit would be applicable if the 2021 Player Cost Amount exceeds 48.5% of Projected AR for the 2021 League Year.
The amount of any such credit to Team Salary in the 2021 League Year shall be offset by an equivalent charge to Team Salary, spread over the 2024–27 League Years in a manner to be determined by the Club. (By way of example, if Club A elects to receive a “credit” to Team Salary for the 2021 League Year of $2,000,000 (i.e., an additional $2,000,000 of Room), Club A may designate $2,000,000 to be offset in the 2024 League Year, or $1,000,000 in the 2025 League Year and $1,000,000 in the 2026 League Year, or in any other manner to be designated by Club A to offset the 2021 League Year Team Salary credit.)
Each Club’s claim of such credit, if any, shall be made by written notice to the NFL prior to the beginning of the 2021 League Year. Additional Room shall become effective upon receipt by the NFL of such notice. The NFL shall promptly forward such notices to the NFLPA. Clubs shall identify in writing to the NFL prior to the beginning of each of the 2024–27 League Years the amount of any offset that shall apply for such League Year. If a Club has not identified its entire offset as of the first day of the 2026 League Year, then the remaining offset balance shall apply in the 2027 League Year.