If the salary cap decreases in 2021 like it could, the Rams will be in an extremely tough spot.
Currently, the Los Angeles Rams have the second-least cap space in the NFL with only $5.24 million to work with. That doesn’t account for their 2020 draft class, which still needs to be signed in its entirety.
To say they’re in a good spot financially would be inaccurate, but the front office is working toward remedying the situation by taking a more conservative approach in free agency and on the trade market this offseason.
That’s in part because of the upcoming contracts the Rams have to hand out in the next year or so. Signing their most important free agents in 2021 could become more difficult than anticipated, too.
The coronavirus pandemic will assuredly lead to lower revenue across the league in 2020, both in lost preseason games and reduced attendance in stadiums – if fans are even allowed to attend games at all. The NFL is trying to find ways to make up for that lost revenue, even proposing to the NFLPA that each team cut its player costs by $40 million “in salary cap and/or benefits.”
If that deal isn’t agreed upon, the financial ramifications could roll over into the 2021 campaign with an even bigger hit to the salary cap. According to Tom Pelissero of NFL Network, the salary cap could drop by as much as $50-70 million per team next year.
That would be a huge difference for not only the Rams, but every other club.
Over the Cap currently projects the 2021 salary cap to be $215 million per team, which would be a $16.8 million rise from this year. Based on that projection, the Rams would have $42.9 million in cap space next year, which includes $8.4 million in dead money and any carryover from this year – which is minimal.
However, if the cap decreases by $50-$70 million, that would put it in the range of $128.2 million and $148.2 million. The salary cap hasn’t been that low since it was $143.28 million in 2015.
In that scenario, the Rams would be over the cap limit, as most teams would be. It’s unclear how teams would be able to account for that reduction in available money – surely, players wouldn’t be outright cut – but pay cuts and tweaked contracts would likely become the norm next year.
Looking at the Rams’ 2021 free-agent class, that massive drop in cap space would impact them the most. That list of players includes Jalen Ramsey, Cooper Kupp, John Johnson, Leonard Floyd, Gerald Everett, Josh Reynolds, Samson Ebukam and Troy Hill.
Ramsey, Kupp and Johnson should be the highest priorities, particularly the star cornerback. The Rams traded two first-round picks to acquire him from the Jaguars and letting him leave after a season and a half would be a huge mistake. The Rams have good depth at both wideout and safety thanks to the additions of Van Jefferson, Terrell Burgess and Jordan Fuller in this year’s draft, but that doesn’t minimize the impact that Kupp and Johnson have on this team.
Even with the current projection of a $215 million salary cap, the Rams would eat up their allotted space quickly by re-signing Ramsey, Kupp and Johnson. Ramsey could approach $20 million per year, while it’s reasonable to think Kupp will eclipse $15 million per year. And with the way safeties are being paid, Johnson should become one of the richest at his position with a contract likely eclipsing $13 million annually.
Now, those contracts could be worked to lower their cap hits in 2021 in the event of a lower cap, but pushing money out to later years isn’t always the smartest move, even if completely necessary during this uncertain time.
The Rams need all the cap space they can get at this point, and any reduction in the salary cap would greatly hurt their roster-building plans – as would be the case for the majority of other teams, too. With big-name free agents set to hit the market next year, the Rams should be watching this situation closely.
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