New York Jets acquire Aaron Rodgers with the Help of Contract Restructuring

In a move that helped the New York Jets execute a blockbuster trade, Aaron Rodgers restructured his contract with the Green Bay Packers. The restructuring involved converting a $58.3 million option bonus payable in 2023 into a 2024 base salary. As a result, Rodgers will earn only $1.165 million this season, which is also his cap charge. Under his previous contract, the Jets would have inherited a $15.8 million cap charge, which would have put them several million dollars over the cap. However, by pushing the option bonus into next year, his 2024 compensation will be $107.55 million.

Jets Have Flexibility to Spread Cap Hit Over Contract

Once the Jets exercise the $47 million option bonus, they can spread the cap hit over the remainder of the contract, which runs through 2027. They could also add a void year to lower the cap charges, but if they do nothing other than pick up the $47 million option bonus, his 2024 cap hit would be $71.26 million. The Jets and Rodgers’ agent, David Dunn, are already discussing restructuring the deal again, and chances are he will have a new deal in place by training camp.

Placeholder Contract Gives Jets Room to Pursue Free Agents and Sign Draft Picks

The compensation package included a 2023 second-round pick and a 2024 conditional second-rounder that improves to a first-rounder if Rodgers plays at least 65% of the offensive snaps. For now, the placeholder contract allows the Jets cap room to sign draft picks and pursue free agents. They are currently $7.4 million under the cap, according to NFLPA data. On Wednesday, they created about $3.5 million in space by tweaking defensive end John Franklin-Myers’ contract. Rodgers, who is 39 years old, did not commit to playing in 2024, but he hinted that he plans to.

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