Derek Carr Contract: Saints Find Loophole to Save $23M in Salary Cap After Restructuring Erik McCoy’s Salary

As they say, a penny saved is a penny gained. And the New Orleans Saints are leaving no stone unturned in their pursuit of maximizing cap space. This is part of their annual restructuring exercise ahead of the Draft and Free Agency deadlines. They actually started with Center Erik McCoy. And now they’ve moved to the QB, Derek Carr.

The cap space hence saved up can be used to sign fresh new faces during the NFL Draft 2024. And the players themselves need not be too sad about the process. They’ll receive the same amount, just that it might be spaced out differently.

Saints move to restructure Derek Carr’s salary

ESPN’s Jeremy Fowler has reported that the Saints are gearing up to make a move anticipated to yield approximately $23 million in cap savings. Presently, the Saints boast the largest deficit across the league with a staggering -$76.5 million prior to Carr’s restructuring. Having inked Carr to a four-year, $150 million deal last offseason, New Orleans faces the immediate task of maneuvering within tight financial constraints. Carr’s slated base salary of $30 million for the upcoming 2024 season represents a significant portion of the team’s payroll.

In light of this, the reported contract restructure will involve converting a portion of Carr’s salary into a bonus, offering the Saints some much-needed relief against the cap. The decision to restructure Carr’s contract ensures that he will be their starting quarterback for the upcoming season.

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Nonetheless, the restructuring introduces additional considerations, particularly regarding Carr’s future cap implications. With a $10 million bonus set to vest in three weeks, the team faces the prospect of a substantial dead cap hit of $50.13 million in 2025 should circumstances dictate Carr’s departure. However, the first player to have his contract restructured was Erik McCoy.

Saints start restructuring process with McCoy

As reported by NFL Network’s Tom Pelissero, the Saints restructured McCoy’s contract, resulting in substantial cap savings of $7.18 million. This maneuver involved converting a sizable portion of McCoy’s base salary and a roster bonus into a new signing bonus, with the addition of a void year to facilitate spreading out the proration of the signing bonus.

The outcome of this restructuring effort is a notable reduction in McCoy’s salary cap hit for the 2024 season, plummeting from $13.7 million to approximately $6.5 million. McCoy’s stellar performance in the 2023 campaign, culminating in his maiden Pro Bowl selection as an injury replacement, underscores his pivotal role as the linchpin of the Saints’ O-line. Amidst the team’s tumultuous season, McCoy emerged as a reliable and consistent force, providing stability from the pivot spot.

This adjustment ensures a more favorable financial outlook for the Saints while preserving McCoy’s presence on the roster through the 2027 season.