49ers create cap space, restructure Fred Warner’s contract

The 49ers are now more than $10 million under the salary cap after restructuring Fred Warner’s contract.

The 49ers quest to create cap space will include a restructuring of linebacker Fred Warner’s contract according to Matt Barrows of the Athletic.

Warner’s base salary has been dropped to just $1.125 million according to Over the Cap, and his cap hit has been reduced to $13,837,750 for this season. The 49ers added one void year to his deal which allows them to spread his cap hit out over the next few years.

In 2025 his cap hit is scheduled to clear $30 million before dropping to $27 million in 2026. He’ll be a free agent after that season.

Warner was one of the bigger contracts the 49ers didn’t restructure last offseason. Doing so now puts them at $10,345,969 in cap space per OTC.

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Fred Warner contract details show backloaded deal

Details from Fred Warner’s five-year, $95 million contract extension came out.

Details of Fred Warner’s five-year, $95 million extension emerged and as with most 49ers contracts, the structure of the largest contract in NFL history for an off-ball linebacker shows it’s a relatively team-friendly deal.

The deal was broken down by Over the Cap. It’ll be five additional years on top of the final year on Warner’s rookie contract, so he’s signed in San Francisco through the 2026 season when he’s 30-years old.

As a result, his cap hits are relatively small the next couple years. Here’s how the break down:

2021: $3,636,547

2022: $8,164,000

2023: $18,525,000

2024: $24,500,000

2025: $23,250,000

2026: $20,786,000

Chances are if he continues playing at a high level, the contract will get restructured and extended beyond 2026 to knock down some of the larger cap hits.

It’s important to remember though that the cap, which is set at $182,500,000 this year is expected to see a significant jump in each of the next two years with steady increases beyond that. His cap numbers will still be significant, but they’ll chew up a smaller percentage of the cap by that point.

With $40.5 million guaranteed on the deal, it wouldn’t be incredibly expensive for San Francisco to get out from under the contract should something unanticipated go sideways with Warner’s career.

It’s $6,580,000 in dead money to release him with a post-June 1 designation next year. Then $5,000,000 in dead money for the next three years, and $2,536,000 in the final year.

Given the trajectory of the All-Pro’s career though, it’s hard to imagine a scenario where the 49ers are looking to shed his contract while he’s in the middle of his prime.

San Francisco needed to get Warner paid before his rookie contract ran out. He’s the emotional lynchpin of their defense and the prototypical modern linebacker who’s a force in coverage and a sideline-to-sideline run stopper. It was hard to imagine the 49ers letting him get away after also trading away DeForest Buckner last offseason.

That’s no longer a worry though. Warner is the highest-paid linebacker in the league and the 49ers got it done with a relatively team-friendly structure.

What’s next for 49ers front office after Fred Warner’s extension?

What’s next for the 49ers’ front office now that Fred Warner’s contract extension is done?

The 49ers on Wednesday checked the last remaining box on their offseason to-do list. They agreed to terms on an extension with All-Pro linebacker Fred Warner that will keep him in the Bay Area for the foreseeable future. For the first time in a couple years the front office may be able to take a breath.

General manager John Lynch and the front office in their second offseason handed out a five-year, $137.5 million deal to quarterback Jimmy Garoppolo. In 2019 they dealt a second-round pick to acquire Dee Ford and then issued him a five-year deal worth $85.5 million. The following year was George Kittle’s turn with a five-year contract worth up to $75 million. This offseason began with Trent Williams’ six-year, $138.06 million deal and ended with the Warner’s five-year, $95 million agreement.

A quick look ahead to next offseason shows the 49ers’ front office could be in the clear on long-term extensions. Defensive end Nick Bosa will be eligible for an extension after this season, and his is sure to be another hefty one should he stay healthy and work his way back into the Defensive Player of the Year conversation.

However, this will only be his third year and he has a year with a club option left on his rookie contract. Negotiations may happen, but it wouldn’t be a surprise if a deal doesn’t come down until the 2023 offseason.

If Bosa doesn’t demand an extension after Year 3, there’s not a ton left for the 49ers front office to do in the immediate. There’ll be some work to do in free agency with a number of holes coming open on the roster and no first-round pick to work with. The big money additions could hit the pause button though for the first time in this regime’s tenure.

The good news is that shelling out big-money contracts is a good “problem” to have. Loading up on good players is typically a strong team-building strategy, FYI. Even if Bosa doesn’t demand on extension this year, he’ll earn one the following year. Then if Trey Lance is the star they believe he can be he’ll get a massive contract a couple years after that.

Managing the cap is going to be crucial for the 49ers as they maneuver through all these big-money deals. Of all the issues a front office has to navigate, this is the best one to have. If San Francisco continues having to work in top-of-market contracts for their players, chances are they’re going to be in contention too.