Taylor Swift, Meet the Cap Hit: A Crash Course in NFL Economics for New Fans

So you fell in love with the NFL last fall. Maybe it was Travis Kelce’s touchdowns, perhaps it was Taylor’s celebrations. Either way, welcome to the madness, and now that you know what a first down is, it’s time to level up.

As it turns out, NFL drama doesn’t just happen on the field. It happens in contracts, cap space, and boardrooms, where billionaires try to build rosters like Grammy-winning albums, heavy on the hits, light on the filler. Confused? Don’t worry. Let’s break it down the way a Swiftie would understand.

Salary Cap = The Record Label’s Budget

Courtesy of the 33RDTEAM

Before Official Announcement on March 1

Every year, the NFL and the NFL Players Association come together to determine the set amount of money each team can spend on its players. It’s called the salary cap, and in 2025, it’s setting another record at $279.2 million (that buys a lot of tickets to the Eras Tour).

Think of it like a music label. You’ve got to pay your headliner (Quarterback), backup vocals (Offensive Line), the featured artists (Wide Receiver, Running Back), and your sound crew (Defense). Blow it all on one star? You’ll be lip-syncing in the playoffs (and not in a fun way).

Guaranteed Money = The Album Advance

NFL players don’t always get the full value of their contracts, unless it’s guaranteed. This is the money they’re getting no matter what, even if they flop, get injured, or are traded to a new team.

It’s like Taylor getting an advance for an album. The label can pull promo, but that cheque’s already cashed.

It’s kind of like “All Too Well (10 Minute Version)”, no matter how long it goes, the payout is locked in.

Franchise Tag = The Unwanted Bonus Tour

Courtesy of FOX Sports

A team can force a player to stay for one more year by using the franchise tag, a top-tier salary for their position. Sounds good? Not always.

It’s like being contractually stuck on a tour you didn’t want to do, playing the same old songs while dreaming of new stages. For high-impact positions like running backs, where injuries often occur, one injury can end their career, leaving them without the financial security they might have secured through a multi-year contract in free agency. 

Dead Cap = Still Paying for the Ex

Ever wonder why a team is still hurting financially from a player who’s already gone? That’s dead cap. Money they owe for past promises, guaranteed salary, signing bonuses, even if the player’s halfway across the country (like the Broncos’ Russell Wilson situation…).

Dead cap is the emotional baggage of NFL accounting.

Courtesy of AP Photo/David Zalubowski | 

Russell Wilson is projected to be the player with the largest cap hit in NFL history.

Void Years = “We’ll Worry About It Later” Energy

Teams sometimes add “void years” to contracts just to spread out the money on paper. These years don’t even count as real seasons; they’re just cap illusions.

It’s the NFL’s version of putting a vacation on your credit card. Fun now. Painful later.

Backloaded Deals = That One Album That Only Has Good Songs at the End (Taylor Swift could never!)

Backloaded contracts start cheap and get more expensive later. It helps the team save money now, but makes the future a budgeting nightmare.

Great if everything works out. Terrible if your tour ends early (or your quarterback forgets how to throw…).

Cap Hit - The Track That Dominates The Charts

This is the actual amount a player counts against the team’s cap in a given year. A $100M contract might sound wild, but the cap hit could be just $20M this season.

It’s kind of like the hit single on the album that makes the entire era, think Cruel Summer or Anti-Hero. These songs have a big impact on the success of the album, especially in terms of how much money it makes, just like that star player who takes a big payday, affecting the overall success of the entire team.

Courtesy of Jeff Hanisch-Imagn Images

Signing Bonus = A Surprise Album Drop

Imagine, all of a sudden, Reputation Taylor’s Version! Bam! This surprise album drop would be akin to the signing bonus some players get. It’s the upfront cash players get just for signing, usually prorated over the contract length. Teams love it because it spreads out the cap impact.

Restructuring = The Taylor’s Version of NFL Contracts

This happens when teams and players can agree to restructure a deal to free up cap space (usually by converting a salary into a bonus).

Why it works: Like Taylor reclaiming her master’s, it’s a strategic move that reshapes the narrative and the balance sheet.

Karma is the Cap Hit on Your Favorite Tight End” – How Travis Kelce’s Contract Impacts the Chiefs

Courtesy of AP Photo/Alex Brandon

Lastly, for all the Chiefs fans out there looking to impress with their newfound cap knowledge, here’s another gem to sneak into your football convos to make you look like the real mastermind. 

While Travis Kelce may be the NFL’s ultimate tight end, he’s also the biggest bargain in football. For years, Kelce has played on a below-market contract.

But here’s where the Karma kicks in:

Travis restructured his deal multiple times to help the Chiefs stay under the cap, freeing up money for Patrick Mahomes’ weapons, O-line upgrades, and those hard-hitting defenders. He played the long game and looked out for the success of the team, not the individual. I would say this has worked in recent years, with 5 Super Bowl wins since 2019. 

This season, Kelce will have a $19.8 million cap hit, giving the Chiefs roughly $5.8 million in cap space, but that doesn’t give them a whole lot of room. But there are options; the Chiefs can open up just over $10 million by converting Kelce's roster bonus to a signing bonus. Kansas City knows Kelce deserves a raise. But now they’re paying the price for keeping the band together. It’s like going into another leg of the tour without a budget for new dancers.

Love May Be Delicate, But The Cap Hit Isn’t

Whether you’re here for the touchdowns or the tight ends, understanding NFL contracts makes the game even juicier. And the next time Travis restructures a deal or gets extended, you’ll know why that matters, both on the scoreboard and on the spreadsheet.

Now go forth and cap-watch, Swifties. Just know this: in football, like in music, the biggest hits come from those who know how to play the long game, just like our Queen Taylor Swift.

Edited by Elle Chavis