Even if the New Orleans Saints don’t plan to be active early in free agency, they’ll have to sort out their biggest remaining question mark before the new league year begins: quarterback Derek Carr’s contract.
Currently carrying more than a $51 million cap hit, Carr’s contract is the most important mechanism available for the Saints to get under the salary cap. The team currently sits just under $40 million over the limit.
New Orleans has a simple path to resolution, but the team appears to be exploring alternative options.
A simple restructure to Carr’s base salary and roster bonus would save the team $30.996 million immediately. The real question is: why hasn’t New Orleans taken action yet?
Oftentimes these kinds of deals could already be done, but don’t become public until they process.
The delay in executing a restructure, for which they do not need permission from the player, could also suggest that the team is pursuing other options first. Although speculation about a trade may be premature, the team has already expressed confidence in moving forward with Carr. However, that doesn’t eliminate the possibility of pursuing a pay cut.
Carr has said publicly that he will not accept a pay cut. The Saints entered their agreement with Carr in 2023 and knew that restructuring and cap gymnastics would be a part of keeping him in New Orleans. Typically, the Saints design contracts with a restructure plan in place from the start. In fact, most teams that frequently use this mechanism follow a similar approach.
But a shift to a pay cut is a different story. Carr and his team would have to agree to a salary reduction or any rework that moves money around. With a new coaching staff in place, the Saints may now hold a stronger bargaining chip than before. However, Carr has no obligation to accommodate the team’s requests. In situations like this, leverage often favors the player who has no intention of leaving.
“I wouldn’t take a pay cut,” he told ESPN’s Katherine Terrell. “Yeah, I wouldn’t do that. Especially with what I put on tape. Would I restructure? Absolutely. I’ll always help the team that way. But there’s some things that you put out there that you earned.”
I caught up with Derek Carr today on his injury, thoughts about the future and how he would approach any potential talks to redo his deal in 2025: https://t.co/J0KBiLsQ6b
— Katherine Terrell (@Kat_Terrell) January 6, 2025
The restricted option is absolutely available. Carr says he’d be okay with it, but truthfully the clause allowing the team to do so is already built into his agreement. The Saints and Carr have their path forward, but New Orleans looks to be leaving no stone unturned.
The good news about the negotiation period is that deals that are agreed upon do not yet become official. Meaning New Orleans could still be working to get under the cap by Wednesday while agreeing in principle on deals Monday and Tuesday. Although, the Saints haven’t often been involved in that portion of free agency for some time.
If the Saints are actively seeking a pay cut, it makes sense that they are taking time to resolve Carr’s contract and address their salary cap overage. However, whether their efforts will succeed remains uncertain.
