The New Orleans Saints are one major step closer to getting on the right side of the salary cap, using the full restructure value of Derek Carr's contract to do it.
The decision was finalized on Saturday, according to multiple reports, and will clear about $30.9 million against the 2025 salary cap. The Saints went into the weekend just shy of $39 million over the cap. All teams must be cap compliant by March 12, the first day of the new league year.
This decision was fully up to the Saints in terms of executing the restructure, something that is written into all of their contracts. Saints GM Mickey Loomis indicated at the scouting combine last month that the team intended to retain Carr at starting QB.
The move itself isn't particularly surprising, but it does mean a few things. The first is that the team and Carr were not able to come to terms on any kind of a pay cut and he'll earn the full $40 million that was earmarked for him this season. The second is that it effectively guarantees Carr will spend at least one more year as the Saints' QB. The third is that we'll be right back in this situation again next season, when Carr will count nearly $70 million against the cap and a similar decision will be presented.
Carr is entering the third season of a 4-year, $150 million contract signed ahead of the 2023 season. To this point the Saints have only accounted for just shy of $18 million of that against the cap due to the structure of the deal and last year's restructure. The Saints could also have opted to cut Carr outright, though that would've meant tricky maneuvering and restructures for several other aging veterans to make ends meet.
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The Saints have already restructured Erik McCoy's contract, and the simplest route to clear the cap burden by Wednesday will be to restructure RG Cesar Ruiz's deal, and either land a pay cut for other veteran players or restructure Carl Granderson's deal. The Saints will have to make additional moves to clear space to sign their draft picks and make any signings in free agency.
Carr's tenure with the Saints to this point has been injury-plagued and highly criticized, though he does have a winning record (14-13) in his 27 starts. Carr was limited to 10 games this season due to an oblique injury and a fractured hand. The Saints lost all 7 games he missed and finished 5-12, with head coach Dennis Allen fired after a Week 9 loss to the Panthers. Carr, 33, has also dealt with a significant shoulder injury and multiple concussions in his short tenure with the Saints. Over that span Carr has completed 68.2% of his passes for 6,023 yards and 40 touchdowns against 13 interceptions.
The Saints have since hired Kellen Moore to lead the team as head coach and reinvigorate an offense that has now had three different offensive coordinators in as many seasons.