Voided contracts could result in $16.4 million in dead cap for Packers

Unless the Green Bay Packers choose to extend several contracts on or prior to February 20th, they will incur a total of $16.4 million in dead cap hits because of previous voided contracts.

According to Ken Ingalls, who independently tracks the Packers’ salary cap, the contracts of Adrian Amos, Dean Lowry, Jarran Reed, Randall Cobb, Mason Crosby, Marcedes Lewis, and Robert Tonyan, all of whom are free agents, are contributing to this accumulated dead cap hit total.

The largest dead cap hit from this group will be left by Amos, and that totals $7.9 million. Lowry, meanwhile, has a dead cap hit of just over $3 million, while the rest are under $1.5 million.

Over the previous two offseasons, in order to get under the salary cap while also trying to keep their roster intact, the Packers have utilized voided years on a number of occasions. In short, voided years are for bookkeeping purposes. On paper, they extend the contract’s life, giving the team a longer runway to spread cap charges over, but in reality, the contract didn’t have any additional years added on. So when that contract is up — which is the case this offseason for the players mentioned — those cap charges pushed into the voided years all come due and, in this instance, will be on the 2023 salary cap, regardless of whether or not those players are suiting up for the Packers this season.

Now, as already alluded to, if the Packers were to extend any of these players on or prior to that February 20th date, they could avoid those dead cap charges by pushing them into the additional years that would come with the new deal. However, will the Packers go that route? Given Amos’ dead cap hit, coupled with the need at safety, of this group, an extension for him makes the most sense, but it remains to be seen if there is mutual interest in an extension, whether it be with Amos or any of the other players with voided contracts.

In general, this is going to be another offseason where the Packers are up against the salary cap. Currently, Over the Cap has them at $16.4 million over the salary cap. They have few significant cuts that can be made to help create cap space. One includes moving on from Aaron Jones, but from a football perspective, that makes little sense. The other would be David Bakhtiari, but the cap savings just aren’t large enough to justify the move.

Instead, we will again see the Packers utilize contract restructures, and possibly more voided years, to get under the salary cap. Jones, Bakhtiari, Kenny Clark, Jaire Alexander, Rasul Douglas, De’Vondre Campbell, and Preston Smith are all restructure candidates. An extension for Rashan Gary, which will help clear cap space, is in the cards as well.

In addition to clearing the $16 million to get under the cap, the Packers also need room for any free agent signings, the draft class, the practice squad, and reserves for any in-season spending that will inevitably take place.

The Packers must be out of their salary cap hole and solvent by March 15th, when the new league year begins and free agency opens.