by Andrew Duhan
Understanding the NFL Salary Cap and Void Years
Disclaimer: I’m not an NFL employee, nor have I worked directly for an NFL team. My research relies on third-party sources. If that makes you skeptical of the details, fair enough. My goal is to provide high-level insights into the NFL salary cap for the average fan, particularly how void years can serve as an indicator of a team’s aggressiveness in roster construction.
I’m passionate about diving deep into complex topics, a habit that’s fueled my success in my professional career as an insurance risk quant. The salary cap has long fascinated me, and I welcome corrections or additional resources from those more knowledgeable to deepen my understanding.
The NFL Salary Cap: A Brief History
Introduced in 1994 via the Collective Bargaining Agreement (CBA), the NFL salary cap aims to ensure competitive balance among teams. Some speculate it was partly a response to the Dallas Cowboys’ dominance in the 1990s, fueled by owner Jerry Jones’ willingness to outspend rivals.
The salary cap is notoriously complex, requiring significant time to master. Frankly, the cap strategies of some NFL teams could suggest they may not fully grasp all the moving pieces. Actions reveal priorities, and not every team’s cap strategy align with their stated goal of winning.
Organizational Masterclass: Philadelphia Eagles
For a masterclass in organizational excellence, look no further than the Philadelphia Eagles. Their front office and ownership work in lockstep, excelling in the draft, free agency, and cap strategy. Since 2017, they’ve reached three Super Bowls without a generational quarterback. Jalen Hurts is a top 10 QB in 2025, but he’s not anywhere close to the level of Tom Brady or Patrick Mahomes. The Eagles won a Super Bowl with Nick Foles and won another with Hurts, a feat matched only by Mahomes, Brady, Matthew Stafford, and Peyton Manning over the last decade. Their coaches, Doug Pederson and Nick Sirianni, may not rank among legends like Bill Belichick or Andy Reid or have the offensive prowess of Sean McVay, yet the Eagles’ front office consistently maximizes their roster’s potential.
Chip Kelly’s tenure as Eagles head coach was a necessary disruption—clearing out the old to rebuild stronger. In 2015, Eagles GM Howie Roseman was exiled from football operations in favor of Chip Kelly. Roseman didn’t sulk during his exile. He studied successful organizations, learned from mistakes, and eventually resurfaced as the GM when Kelly was fired. Below is a quote from Roseman from a March 2018 PFT article:
“As it turned out, it was probably the best thing that ever happened to me. Did I ever think I would be back in a significant position in Philadelphia? No. I don’t think that I did. But I was just determined that I was going to try to do the right thing every day, and get better and learn more.”
Many NFL teams lack this patience, firing executives before they can grow. Had Kelly enjoyed short-term success, Roseman might not be with the Eagles today (a nightmare scenario for Eagles fans).
Even Roseman isn’t perfect. During the 2020 NFL draft, he drafted Jalen Reagor over Justin Jefferson. Yet Roseman rebounded from that pick, building a roster that won a second Super Bowl and is now among the NFL’s deepest. Roseman selected Super Bowl MVP QB Jalen Hurts in the second round of that same draft, a decision that was widely controversial at the time since the Eagles already had QB Carson Wentz on the roster. Mistakes happen; resilience defines success.
Salary Cap Basics
The salary cap is the maximum each team can spend on players, increasing annually due to rising league revenues, like media deals. In 2025, it jumped from $255.4 million to $279.2 million.
There are two vital concepts that everybody should understand: cash (what players are paid) and cap (how that payment is accounted for). The cap isn’t a budget. Teams can spend more cash than the cap allows. For example, the Cowboys spent $353.2 million, nearly $100 million over the cap, driven by Dak Prescott’s $78 million signing bonus, while the Saints spent just $192.5 million, the league’s lowest.
How Teams Manipulate the Cap
Teams exceed the cap using mechanisms like signing bonuses, which pay players upfront while spreading the cap hit over up to five years. For example, a five-year deal with a $10 million signing bonus can be spread out (or pro-rated) at $2 million per year throughout the life of the contract instead of recognizing the $10 million hit all in one year. When NFL teams try to create space in their salary cap, they can convert a portion of the player’s salary to a signing bonus, pay the player up front, and spread the cap hit out to up to five future years.
Now, consider a one-year deal with a minimum base salary and a $10 million signing bonus. Can you prorate the bonus over five years? Yes—by adding “void years” (or dummy years) to the contract. At the end of Year 1, the contract voids, and the remaining $8 million becomes dead cap in Year 2 unless the player is extended. Every dollar paid to the player must eventually be recognized on the cap; the strategy lies in when.
Void Years: A Strategic Tool
The graphic below illustrates the void year cap charges from 2026 to 2033 for every NFL team, as of June 14, 2025, using Spotrac data.
Philadelphia leads the NFL with over $427 million in void-year cap charges from 2026 to 2033, a clear sign of their aggressive approach. Cleveland and New Orleans rank second and third, but their void years stem from overpaying the wrong quarterbacks, forcing cap gymnastics to avoid total roster collapse.
The Chiefs, meanwhile, have $60 million in void-year charges for Patrick Mahomes’ contract in 2033–2034, the highest for a single player. The Eagles even deferred $20,000 of kicker Bradley Pinion’s salary, showing they optimize every dollar. Four teams avoid void years entirely (Bears, Patriots, Steelers, and Chargers), and ten, including the Bengals, have less than $20 million deferred. Cincinnati, with big contracts for Joe Burrow, Ja’Marr Chase, and Tee Higgins, has stayed conservative but may be forced to change their philosophy with ongoing talks for Trey Hendrickson.
What Void Years Reveal
Void years alone don’t guarantee success, but for competitive teams, they’re a green flag of aggression. The Eagles’ $427 million in void-year charges exceed the combined total of the bottom 18 teams. Looking ahead, NFL owners are reportedly seeking cap changes to favor less cash-rich teams, a move I view skeptically. Below is an X post from Ari Meirov on May 25, 2025:
Per Sports Business Journal’s Ben Fischer, the NFL brought in more than $23 billion in total revenue in the past fiscal year. Each NFL team will receive a $416 million distribution from the league’s national media, sponsorship, and licensing revenue. The cap already is an advantage for the owners, not the players. The Players Association should resist changes that could impede cap flexibility and prevent more players from getting paid.
Closing Thoughts
I hope this deep dive into the salary cap and void years was enlightening. For further discussion, reach me at
Check out my Falcons podcast, Flight Path, on YouTube or Spotify, where Jeff Benedict and I cover all things Atlanta Falcons.
Thanks to Spotrac’s Mike Ginnitti, OTC’s Jason Fitzgerald, and former Eagles VP of Football Administration
