The NFL's system for distributing league revenue among all 32 teams and between owners and players. Teams share most national revenue equally, and players receive approximately 48% of total league revenue.
The NFL's revenue sharing system is one of the most comprehensive in professional sports and is a key reason for the league's competitive balance. Revenue is shared on two levels: between the league and its players (via the CBA), and among the 32 teams themselves. On the league-to-player level, the CBA guarantees players approximately 48% of total league revenue, with the exact percentage varying slightly based on the revenue category. This percentage determines the salary cap: total player revenue is divided by 32 teams to establish the per-team salary cap. As league revenue grows (primarily through television deals, which currently total over $10 billion annually), the salary cap rises proportionally. Among teams, the NFL shares national revenue sources -- including television contracts, league-wide sponsorships, and merchandise sales -- equally among all 32 franchises. This ensures that small-market teams like the Green Bay Packers receive the same national revenue as large-market teams like the Dallas Cowboys. However, local revenue sources such as stadium revenue (including luxury suites, naming rights, and local sponsorships) are not fully shared, creating some disparity. The visiting team revenue sharing rule also requires home teams to share a percentage of gate receipts with visiting teams, further promoting parity.
The NFL's television deals signed in 2021 are worth approximately $113 billion over 11 years across CBS, NBC, FOX, ESPN, and Amazon. This revenue is shared equally among all 32 teams, providing each franchise with over $300 million annually in TV money alone before any local revenue.
Salary Cap = (Projected Total Revenue x Player Share %) / 32 teams - Benefits Each team's national revenue share = Total national revenue / 32
Category: CBA & League Rules. Part of the StickToTheModel NFL Encyclopedia.