Monday Money Matters
The NFL Salary Cap has risen again. Due to a new mechanism that was created in the most recent amendments to the Collective Bargaining Agreement in March 2006, there is now close to $1M more per team of available Cap room – around $30M league-wide -- than there was a week ago. Although the reason for the increase is a bit technical, I thought I would give readers a look at why this increase happened – two different times over the past couple of months – and how the amount is artificially inflated due to the fact that 2009 is the last year of the Cap.
The Cash Adjustment Mechanism (CAM) was developed by the NFL and the NFL Players Association as a method to ensure Cap adjustments based on actual Cash spending on an annual league-wide basis. There are two types of accounting in the NFL