The league as a whole DOESN'T HAVE A CAP. The owners decide what they will do with their percentage of revenues and have nothing to do with the cap established for players. Per the CBA the players get 48.5% of the revenues generated by the NFL and THAT is what EACH team's year cap is based on and THAT is what teams are required to spend. Even though the minimum in the last CBA was 95%, it is for this season 88.8% but goes back to 90% starting in 2021. Those escalators you said come from the money that gets reverted back to the league from the teams the previous year who didn't spend the minimum amount required That unused money is returned to the league and then evenly divided to all the teams that did spend their minimum. The have to use the previous year because all teams have until the end of the season to spend their cap dollars. That is why we see some contracts sign towards the end of the season to get that minimum spent so they are only carrying the maximum amount for rollover. There was an interview about 2 years ago with Bob Costas and the league vice president of finance Anthony Cardillo where this was all explained.
First off, I said nothing about owners in any of my post. I know cap dollars and owner earnings have nothing to do with one another.
Secondly, the NFL distributes all of that money among the teams like you said buy only after they give escalators to players that have earned them.
Question. Where do you think retirement funds come from? Players and owners right?
If every team only spins the 89% cap minimal that would leave almost 300 million dollars laying around. 95% of that left over money goes back to current players, one way or another. The other five goes to player retirement funds. So basically they put a cap on how much current players can get just so they could have a pension plan.
Now let's recap. Every team has a player budget of 198 million. 198 million times 32 equals 6 billion 336 million. Of that six billion current players can only get 95% of that. Meaning the league has a league wide cap of 95% while the rest goes toward retirement.
That's why the cap has a floor and a ceiling. The ceiling is set for pension purposes by the NFLPA.
Disclaimer....
I could be wrong. Maybe the NFL doesn't have a pension plan.--JK.
I know they do.