EricVega/iStockBy CARMEN COX, ABC News

(NEW YORK) — The NFL and the NFL Players Association have reached an agreement on team salary caps. On Wednesday, the league and its players’ union agreed to cap each team’s salary at $182.5 million in 2021 — down 8% from last season, according to a memo obtained by ESPN.

In previous years, teams saw increasing salary caps as league revenues continued to rise. But as the COVID-19 pandemic forced city and statewide lockdowns, game attendance fell by 92% and caused a decline in 2020 revenues.

Teams must comply with the new salary cap limits by next Wednesday at 4 p.m. ET — the start of the new league year. The decreased limits will likely mean teams will have to make difficult roster decisions and release a significantly high number of players into the free agent market to bring team salaries below the league’s required cap.

As COVID restrictions relax and the NFL works to lock in new broadcasting deals, pro football attendance and revenues are expected to rebound in the 2021 season.

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