Tag: guarantees

How do Derek Carr’s $30M injury guarantees impact Saints’ decision?

Derek Carr is due an extra $30 million in guarantees if he can’t pass a physical in March. How does that impact the Saints’ decision to keep playing him?

We’ve learned some more details on Derek Carr’s new injury. The New Orleans Saints starting quarterback fractured a bone in his non-throwing hand leaping for a first down late in Sunday’s win against the New York Giants, and while it won’t land him on injured reserve, he’s going to be a week-to-week decision, according to interim head coach Darren Rizzi.

But there are longer concerns at play here. If Carr can’t pass a physical by March 17, an additional $30 million becomes guaranteed on his contract.

That’s already the case anyway, as far as Carr’s performance and the salary cap are concerned. The difference is, if he suffers a serious injury and won’t be able to pass that physical upon reporting for the offseason program, the Saints would be on the hook for the $30 million in 2025. If he’s healthy, they have an off-ramp, should they choose to use it. They could say he wasn’t meeting expectations or salary cap constraints forced their hand. Carr’s 2025 salary cap hit is set at $51.4 million, but they could designate him as a post-June 1 cut, let him go by March 17, and get that $30 million back in savings on June 2 — after free agency and the draft have passed them by.

So right now, that isn’t a real factor in their decision. If the Saints choose to ask Carr to play through injury, they could risk another more-significant injury that would impact him in the longer view. That would jeopardize the $30 million tied up as injury guarantees. If they choose to shut him down instead and not risk it, they’d be following a pattern established by other teams. That’s why the Las Vegas Raiders made Carr a healthy scratch to close out his career, and why the New York Giants benched Daniel Jones before cutting him at his request.

However, this all hinges on the idea that the Saints don’t plan on paying that $30 million anyway. Their next head coach should ultimately decide whether or not to keep Carr. It’s also possible that decision has already been made and working with Carr could be a mandate from ownership or management. Restructuring his contract again would fold the $30 million into another signing bonus that’s paid out over future years, which would be the easiest path forward if they’re determined to keep building around him.

But at that point we’re speculating too much. For now the Saints don’t appear to be concerned about Carr’s long-term projection, and the injury he’s currently dealing with should be well behind him come March. It’s just something to keep an eye on if they do choose to put him into another game or four this year.

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Chase Young’s unique contract structure makes Saints deal look better than expected

Chase Young’s unique contract structure makes his deal with the Saints look better than expected. See for yourself:

Now this is interesting. It’s been a whirlwind of a week for Chase Young and the New Orleans Saints — fans following this saga were surprised to see him sign a fully-guaranteed $13 million contract on Monday, which turned out to be for just one year, before it was reported that Young will be undergoing neck surgery. That procedure is going to sideline him into training camp.

And now there’s another twist as the full picture becomes clear. The Saints knew about Young’s medicals before they agreed to this contract, and it’s structured in such a unique way that they’re protected in case he misses time recovering.

CBS Sports’ Jonathan Jones first reported that the Saints signed Young to a deal that includes $7.99 million in per-game roster bonuses, which he will only receive if he’s active each week during the 2024 season. So Young risks losing $470,000 for every game he’s unavailable, giving him a strong incentive to attack his rehab and get back on the field as soon as possible.

Additionally, Jones reports that Young’s base salary is just $2.7 million. He also received a $1.86 million signing bonus and a $450,000 workout bonus. That means Young’s contract is effectively a $5.01 million deal with another $7.99 million he can earn through being active in every game. Any games he misses will result in a salary cap credit going back to the Saints in 2025. If things take a bad turn and Young never plays a down for New Orleans, the team will get the full $7.99 million back next season.

Obviously they hope that won’t come to pass. Everyone involved is eager for Young to get healthy and play a productive 17 games in the fall (and then some; it’s playoffs or bust for underperforming head coach Dennis Allen). To that end, betting on his upside is worthwhile.

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Chiefs, DL Chris Jones agree to massive 5-year extension with $95M guaranteed

The #Chiefs signed star defensive lineman Chris Jones to a massive five-year extension that reportedly guarantees him $95 million.

The Kansas City Chiefs and veteran defensive lineman Chris Jones reached agreement Saturday on a five-year contract that includes $95 million in guarantees.

The contract will keep Jones in Kansas City until he is 34 years old and clears the way for the Chiefs to keep their championship defense intact for another season.

Jones’ new deal was first reported by ESPN’s Adam Schefter:

While the finer details of the move have yet to be announced, fans in Kansas City are sure to be excited that one of the Chiefs’ cornerstone players will be with the team for the foreseeable future.

Jones tallied 10.5 sacks in 2023, playing for Kansas City on the franchise tag after holding out through training camp, the preseason and the Chiefs’ Week 1 loss against the Detroit Lions.

With his new deal, Jones will be among the highest-paid players ever at the defensive tackle position and should be expected to continue producing elite numbers in Steve Spagnuolo’s system.

Saints kick off their annual restructures with Pro Bowl center Erik McCoy

The Saints kicked off their annual salary cap strategy by restructuring their contract with Pro Bowl center Erik McCoy:

The New Orleans Saints kicked off their annual salary cap strategy with Pro Bowl center Erik McCoy, agreeing to a contract restructure that guarantees McCoy his money while helping the team’s accountants.

Per NFL Network’s Tom Pelissero, the Saints are saving $7.18 million by restructuring McCoy’s contract — which they’ve done by converting most of his base salary and a $500,000 roster bonus due in March into a new signing bonus, adding a void year to spread out the signing bonus proration. The end result: McCoy’s salary cap hit drops from $13.7 million to about $6.5 million for 2024. He’s under contract through 2027.

McCoy earned his first trip to the Pro Bowl Games in 2023 as an injury replacement, and he was the Saints’ steadiest offensive lineman during their recent tumultuous season. They’ll be counting on him to anchor the middle of the line from the pivot spot for the foreseeable future. With Derek Carr returning at quarterback and Klint Kubiak installing his offense, having McCoy at the point is going to be good for all involved.

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As expected, Saints will likely restructure Derek Carr’s contract

As expected, the Saints will likely restructure Derek Carr’s contract and tie themselves to the QB through 2025:

This was the way the wind was blowing: the Times-Picayune’s Luke Johnson reports that the New Orleans Saints are likely restructuring their contract with Derek Carr this offseason, which will bring the team much-needed salary cap relief while tying themselves closer to the quarterback. His contract would effectively become guaranteed through 2025.

Carr currently has a salary cap hit at $35.7 million, highest on the team. A standard restructure would reduce his already-guaranteed base salary from $30 million to the veteran’s minimum and pay the difference out as a signing bonus, which is prorated over the next five years. That lowers his cap hit down to about $12.6 million in 2024, saving the Saints more than $23 million this year. This was the plan all along — committing to Carr with heavy guarantees through his first two years. That’s how they got him to sign here instead of with, say, the New York Jets or Carolina Panthers.

Now, New Orleans would still be in the red by more than $60 million after restructuring Carr. The Saints would still by higher over the cap by a higher figure than any other team; the Buffalo Bills and Miami Dolphins both need to clear about $51 million to reach cap compliance. There’s a lot of work still to be done. This is just the first big step.

The downside to doing this? Carr’s cap charges in 2025 ($45.7 million) and 2026 ($55.7 million) go even higher, increasing by about $5.7 million in each season. Because this money was already guaranteed, just paid out differently for accounting purposes, it’s more difficult to get out of Carr’s contract later on. If he fails to improve with a new offensive coordinator in the fall then general manager Mickey Loomis will be left with an albatross around his neck. Releasing Carr before his contract expires would accelerate all of those $5.7 million signing bonus payouts into the current year rather than scratching them out over time.

It’s more complicated if you look further out. If Carr is on the roster by March 17, 2025 then his $30 million salary for that season will become fully-guaranteed, too. Let’s say the Saints do restructure Carr this offseason, which is what’s expected. That puts his 2025 cap hit at more than $51.4 million. They’ll have to make a decision next year on whether to cut him (to negligible salary cap benefit) or restructure him again. Knowing Loomis, the latter route is more likely.

Carr was always going to be in New Orleans for at least 2023 and 2024. Restructuring his contract now makes it highly likely he’ll be the quarterback again in 2025. His current deal runs out in 2027. Who knows what the team looks like at that point? Loomis and Dennis Allen could both be gone. But Carr, and all the money they chose to invest in him, will remain. Let’s hope he can carry his strong finish to the 2023 season — Carr led the league in touchdown passes through the final five weeks — over into the years ahead with a new offensive coordinator calling plays, making this big contract a little more palatable.

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Don’t expect big moves from Saints at NFL trade deadline

Never say never, but fans shouldn’t expect big moves from the Saints at Tuesday’s NFL trade deadline:

Any New Orleans Saints holding their breath for a blockbuster move ahead of Tuesday’s NFL trade deadline may need to reconsider their stance. It’s possible the Saints could surprise us and add a big name or ship someone out, but it’s not looking like they’ll be part of many high-stakes negotiations as the trade deadline approaches. NFL rules dictate that trade talks may not continue beyond 3 p.m. CT on Tuesday, Oct. 31.

So why won’t New Orleans be in the mix? For one thing, the Saints don’t have many contracts they could offload for salary cap relief, nor pending free agents other teams would want to prioritize. For another, these are the only 2024 draft picks New Orleans can barter with right now (compensatory draft picks can be traded, but not until they’ve been officially awarded in March):

  • Round 1
  • Round 2 (via Denver Broncos)
  • Round 5
  • Round 6
  • Round 6 (via Philadelphia Eagles)
  • Round 7 (via Denver Broncos)

Those top two selections should be off-limits, so that leaves the Saints with only a couple of late-round picks to put on the table. And that’s unlikely to land a difference-maker. Maybe the Saints could improve depth along the offensive line or add another receiver or tight end, but those are all marginal improvements.

One other point: while it may be fun to daydream about a trade for a top-shelf pass rusher like Danielle Hunter or Chase Young, those players would need expensive contract extensions. And the Saints just guaranteed a combined $61.8 million in extensions with Cameron Jordan and Carl Granderson this summer, so it’s very unlikely they would triple down with another veteran pass rusher like this. Maybe a situational player would make sense, but then they’d be taking snaps away from Isaiah Foskey and stymieing his development.

Obviously you’d never say never, but in this case it doesn’t look like the Saints are going to be big players at the trade deadline on Tuesday. We’ll check in on the rumor mill and see whether the Saints are being linked to anyone in the hours leading up to that deadline.

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Rookie Saints cornerback Anthony Johnson’s contract is heavily guaranteed

It was easy to overlook undrafted Saints CB Anthony Johnson, but he was hot on their radar. He received the second-most contract guarantees of their rookie free agents:

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It was easy to overlook cornerback Anthony Johnson. The former Virginia standout didn’t arrive with as much fanfare as other New Orleans Saints undrafted free agents, but the team was thrilled to sign him after the 2023 draft — NewOrleans.Football’s Nick Underhill reports that Johnson received a whopping $231,000 in guarantees, second-most of the Saints rookie free agent class. Only Arkansas-Pine Bluff offensive lineman Mark Evans had a larger portion of his rookie deal guaranteed at signing ($241,000).

That’s impressive, but Johnson is an impressive prospect. He played often at Louisville from 2018 to 2020 before transferring to Virginia for a larger role on defense in 2021, and the move paid off: he intercepted 5 passes and logged 15 pass breakups in two years with the Cavaliers. He was named first-team All-ACC last year, too.

He’s totaled more than 2,000 defensive snaps at cornerback in his college career while recording 328 reps on special teams, mostly with the punt return and field goal blocking squads. And he’s got great size for the NFL at 6-foot-1.5 and 205 pounds, with 32.6-inch arms though his overall athletic profile is lacking.

Johnson’s athletic limitations weren’t much of a problem at the Senior Bowl practices, and he impressed Saints senior defensive assistant Peter Giunta at Virginia’s pro day, who conducted drills for the defensive backs in front of scouts and other coaches. Johnson won a trip to Ben & Jerry’s from Giunta by not dropping any passes in that workout, and that relationship (as well as the heavy contract guarantees) may have helped the Saints ultimately recruit him.

It’s a good sign for his chances of making the cut that the Saints already waived cornerback Vincent Gray, who spent the entire 2022 season on their practice squad. Johnson’s contract guarantees should at least lock him in to the practice squad, but if he can be an asset on special teams while competing hard on defense through the summer and preseason, he just might make the 53-man roster.

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Several New Orleans Saints rookies among NFL’s highest-paid undrafted free agents

Several New Orleans Saints rookies rank among the NFL’s highest-paid undrafted free agents. Expectations are high for them with rookie minicamp on the horizon:

There’s a lot to be said for hearing your name called in the NFL draft, but in some cases it pays to be patient and reach undrafted free agency. Those seas are turbulent, but there’s big profits to be won from sailing them. Several New Orleans Saints rookies have certainly cashed in this year after hammering out undrafted free agent contracts in the hours and days after the draft.

Once you get into the later rounds, some players may prefer to not be picked at all because of the unique contract quirks that comes with that status. For drafted players, contract guarantees are tied to their draft slot — so a sixth-round pick may only receive a signing bonus valued between $218,000 and $133,000, for example. Seventh-rounders receive even less in guarantees: former South Alabama wide receiver Kawaan Baker, the Saints’ seventh-round selection in 2021, only received $80,076 in guarantees as the No. 255 overall pick.

Not only do undrafted rookies get more guaranteed money, they also may have the luxury of choosing their team if there are competing offers on the table. Last year, the Saints signed returns ace Rashid Shaheed out of Weber State to an undrafted free agent contract carrying $222,000 in guarantees. He was the only undrafted rookie to get more than $200,000 in guarantees from New Orleans last season. At least three players have earned that in this cycle. Here’s why the Saints valued them so highly:

Saints among NFL’s biggest spenders in signing 2022 undrafted free agents

The Saints were among the NFL’s biggest spenders in signing undrafted free agents last year, but will that trend continue after the 2023 draft?

This is interesting. NFL Network’s Tom Pelissero shared a report from the NFL Players Association breaking down each team’s spending on undrafted free agents from the 2022 rookie class — and few teams spent as heavily to recruit undrafted talent as the New Orleans Saints.

In total, the Saints guaranteed a whopping $1,242,000 to the rookies they signed after the 2022 draft. That’s double the average spending by team ($600,551), ranking third-most behind the Philadelphia Eagles ($1,882,000) and Dallas Cowboys ($1,842,500). Teams are limited by how much they can guarantee to undrafted players, and the Saints came close to maxing out their rookie pool.

So where did that money go? The Saints guaranteed $222,000 to former Weber State wide receiver Rashid Shaheed, one of the highest totals for an undrafted player around the league (despite him recovering from a torn ACL at the time). They signed 19 undrafted rookies to an average guaranteed signing bonus of $9,294, so Shaheed was someone they valued very highly. If he had been healthy they may have drafted him in the sixth round instead of Air Force defensive tackle Jordan Jackson, who spent his rookie year on the practice squad before jumping ship for the Denver Broncos; but that worked out better for Shaheed because only $176,688 of Jackson’s contract was guaranteed, because of his draft slot. Shaheed signing an undrafted rookie deal actually allowed him to get more money in guarantees.

But only two of those undrafted players made the roster, in Shaheed and backup offensive lineman Lewis Kidd. Eight others earned spots on the initial practice squad. Only the Indianapolis Colts (4 on the roster, 7 on the practice squad) and Jacksonville Jaguars (3 on the roster, 9 on the practice squad) had more first-year players make the team.

On one hand, that’s impressive, but on the other hand it goes to show how serious the depth issues have gotten in New Orleans that so many undrafted players were in the mix. The COVID-19 pandemic-fueled salary cap crunch hit them harder than most teams.

Still, the Saints have a history of finding value among the players who aren’t fortunate enough to hear their name called on draft day. They aren’t afraid to spend big to bring in players who they believe in. We’ll see who joins the list in 2023.

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Alontae Taylor remains Saints’ only unsigned 2022 draft pick

Alontae Taylor remains the Saints’ only unsigned 2022 draft pick, but expect that to change with rookies reporting to training camp:

New Orleans Saints training camp is almost upon us, with the team’s rookie players reporting for their first day of work on Tuesday. Veteran teammates will join them next week, and the first real Saints training camp practice session will soon follow, with nine dates open for fans to pack the sidelines and take it all in.

But there’s one bit of housekeeping left to attend to: officially signing second-round rookie Alontae Taylor to his first NFL contract. Taylor is the only Saints draft pick to not yet sign his standard four-year rookie deal, with NewOrleans.Football’s Nick Underhill reporting back in June that there’s been a holdup in negotiations — either in offset language (determining how much the Saints are liable to pay should Taylor be cut and join a new team) and the amount of guaranteed money, specifically in base salaries for future seasons.

That’s not too surprising. Most first-round picks receive a fully-guaranteed four years, and most players picked early in round two get the first three years guaranteed. Taylor, who was selected right in the middle of round two at pick No. 49, happened to fall at an inflection point between players who get some of their third-year salary (the 2024 season) guaranteed, and those who don’t receive any guarantees past their second season (in 2023).

For example, the player selected right after him at No. 50 (New England Patriots wide receiver Tyquan Thornton) didn’t receive a a guaranteed salary in 2024. That’s likely a point of context the Saints are using to avoid guaranteeing Taylor the money his agent is pushing for. It’s in the team’s interest to only guarantee the first two years of his deal (in case things don’t work out and they part ways by 2024), and it’s in Taylor’s interest to push for at least some guarantees in 2024 to give himself some more security.

But this is pretty low-stakes as far as NFL contract negotiations go. The delay in getting Taylor to sign won’t impact the Saints salary cap situation in any significant way. Things like per-year salaries and signing bonus figures are tied to draft slots under the latest collective bargaining agreements, so these later-year salary guarantees are one of the last remaining points that teams and players can engage in back-and-forth talks on. With Taylor back in New Orleans for camp, both sides will feel some incentive to bridge the gap and put pens to paper. Look for a resolution in the near future.

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