Packers create $16M in cap space restructuring Alexander and Smith deals
By Paul Bretl
The Green Bay Packers’ quest to get under the salary cap continues. According to Ian Rapoport, the Packers restructured the contracts of Jaire Alexander and Preston Smith, creating $9.456 million and $6.668 million in respective cap space.
It is unknown at this time if void years were added to either contract, but it’s a tool that the Packers have used frequently the last few offseasons to help alleviate salary cap constraints in the current year. Void years are not an extension and the cap charges pushed to them immediately come due when the contract terminates.
These two moves shouldn’t come as a surprise. As I wrote about recently, both players had roster bonuses due on March 17th. Alexander’s was worth $11.45 million, and Smith’s $7.5 million. When a roster bonus is paid, that entire amount counts towards the current year’s salary cap. However, by converting a portion of those roster bonuses to signing bonuses, which I’m guessing the Packers did with Alexander and Smith, those cap hits can be spread out over the life of the contracts, thus lowering the cap hit in 2023.
Prior to these two moves, Over the Cap had the Packers at $9.6 million over the cap. With roughly $16 million in cap space now created, Green Bay should be out of the red and with a surplus of about $5.5 million.
Although they are no longer in the hole, Brian Gutekunst and Russ Ball still have work to do. Expenses that have not yet happened nor been accounted for in the Over the Cap projection include needed cap space for the incoming draft class, the eventual practice squad, money for any in-season spending, which would go towards any signings or practice squad elevations, along with money for the upcoming free agency period.
The good news is that the Packers have several other cap-saving maneuvers still available, but this will again be an offseason where Green Bay likely doesn’t make a big splash in free agency. Along with Alexander and Smith receiving those roster bonuses on the third day of the league year, so do David Bakhtiari, De’Vondre Campbell, Rasul Douglas, Pat O’Donnell, and Kenny Clark–which makes each of them a contract restructure candidate. An extension for Rashan Gary will also free up cap space as well.
Although cap space is freed up in the present with these moves, by pushing cap charges into future years, the cap hits for any restructured deals will increase in the following years. The cap charges never completely go away with restructures; they just come due in a different year.