Everything You Need to Know about Atlanta Falcons Salary Cap Problems, Solutions

Atlanta Falcons owner Arthur Blank pushed the hard-reset button on the franchise after they failed to post a winning record for the eighth consecutive season. CEO Rich McKay was moved off of football, general manager Terry Fontenot was fired after five fruitless seasons, and head coach Raheem Morris was let go after two underachieving seasons.

Matt Ryan was hired as the new President of Football, and his next task is to work with an outside consulting firm to hire a general manager and then a head coach.

Teams must decide if they're going to use their franchise tag on one permitted player by March 3rd.
The contact period for free agency begins on March 9th, and teams must be under the salary cap by the first day of the new year, which is March 11th.

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The Atlanta Falcons are $30.6 million under the salary cap, 16th in the NFL, according to Spotrac, including an expected salary cap increase of roughly $25 million to just north of $300 million in 2026.

Last week, they made a procedural move with quarterback Kirk Cousins in order to create $32 million of space right away, and now they can re-sign some of their own free agents or use the franchise tag before March 3rd.

Let's dig into how the Falcons might spend that money before free agency as well as cut candidates to create more space for free agency

Falcons' Priority Free Agents

Atlanta Falcons linebacker Kaden Elliss is scheduled to be a free agent in March. | Mark J. Rebilas-Imagn Images

The Falcons have two priority free agents who will demand a premium on the open market: Linebacker Kaden Elliss and tight end Kyle Pitts.

That's not to say role players like Arnold Ebiketie and Dee Alford aren't important; they just won't have a significant impact on the 2026 salary cap.

Elliss was the defensive MVP of the team, and Spotrac pegs his market value at three years and $27 million. He's coming off a three year, $21 million deal, and Spotrac may be a bit conservative on this one.

19 linebackers have an average contract of $9 million or more, and that's before this round of free agency. $12 million seems like a more realistic number, and even that feels conservative. Three years at $36 million with $25 million guaranteed could mean roughly a $10 million cap hit for Elliss in 2026.

Pitts is a little more straight forward.

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He was named second-team All-Pro by the AP this week, and just turned 25 years old in October. The Falcons have the option to use the franchise tag on him by March 3rd. This would give Pitts a one-year, guaranteed deal at the average of the five highest-paid players at his position. Because tight ends are underpaid relative to their counterparts, this would mean $15.8 million for Pitts.

Players typically don't like to have the franchise tag put on them because their alternative is the open market and the prospect of a multi-year deal. If the Falcons aren't comfortable giving Pitts a four-year deal north of $60 million, Pitts may push for a trade.

Pitts resurrected his trade value in 2025, and the Falcons' new general manager will have a decision to make. As the Falcons floundered to a 4-7 record, Pitts averaged 41.7 yards per game and had one touchdown.

With the Falcons out of contention, free agency looming, and Drake London missing a significant amount of time, Pitts' numbers ballooned to 78.2 yards per game with four touchdowns in the final six.

The obvious first move is to franchise tag him and buy more time before the NFL Draft in April.

The Savings, Cuts, Trades, and Restructures

Atlanta Falcons quarterback Kirk Cousins new contract has an expiration date of March 13th. | Brett Davis-Imagn Images

Kirk Cousins, QB, Cap Savings $2.1 million

The Falcons already cashed in the savings they would get from cutting Cousins with the restructure. With a guaranteed salary of $67.9 million looming on March 13th, the Falcons' guaranteed Cousins' current contract would expire by that date.

It's not out of the question that he'll return to the Falcons, but he would need a new contract by March 13th that tears up the final two years of his contract.

When they do cut him, $35 million of dead money hits the Falcons' books. Most likely, it will be $22.5 million in 2026, with $12.5 million carrying over to 2027.

Cousins helped out the Falcons by making it easier for them to negotiate new contracts with their own free agents, like Elliss and Pitts, before the start of the new league year. He didn't actually take less money, or "save" the Falcons anything. The total compensation for Cousins' two years in Atlanta will be $100 million.

Darnell Mooney, WR, Savings $7.4 million, $11.9 million post June 1

This is about as easy as it gets when it comes to predicting cuts. Coming off an impressive first year with the Falcons, Mooney was hoping to have an even bigger 2025. He broke his collarbone on the first day of training camp and never really returned to the fold.

His 443 yards were the second-lowest of his career, and he had two catches or fewer in nine of his 15 games.

The Falcons will likely designate him a post-June 1 cut and open $11.9 million while carrying over $4.5 million of dead money to 2027.

Jessie Bates III, S, Savings Up to $14 million in a trade

This one is a little tougher. Bates has been excellent with the Atlanta Falcons. He was named second-team All-Pro for the second time in his three-year stint.

However, he carries a $24.8 million cap hit in 2026 and turns 29 next month.

Is a $25 million safety a luxury this Atlanta Falcons team can afford? They can, but they probably shouldn't. Atlanta could save up to $14 million in a trade. His $13 million base salary isn't bad for a team that would want to make a move for him, and Atlanta is desperate for extra draft picks, with only five in April.

A contract restructure isn't off the table, but restructuring aging stars is what got the Falcons in cap hell at the end of Thomas Dimitroff's regime. A new general manager would do well to take a look at the future beyond 2026.

A restructure could save the Falcons up to $9.5 million, so let's use that number as a baseline for moving on from Bates.

Charlie Woerner, TE, $4.75 million savings

Charlie Woerner is an excellent blocking tight end, but he carries a cap hit of $5.75 million with only $1 million of dead money. Like Bates, is a $6 million blocking tight end really a luxury the Falcons can afford?

We're banking on the new general manager finding $4.75 million in savings on Woerner's contract too tempting.

KhaDarel Hodge, WR/ST, $2.6 million savings

A fan favorite, Hodge was unable to make an impact on special teams in 2025 as he had in past seasons. He was passed by as an emergency wide receiver by the likes of David Sills V and Dylan Drummond.

He was a healthy scratch for five games, the first time he wasn't active in a Falcons game in his four years, and had just three catches for 31 yards.

He carries a $3.3 million cap hit in 2025. While the Falcons would love to have him back in camp this summer, it won't be on $3.3 million.

Mike Ford, ST/CB, $1.9 million savings

Mike Ford had a few splash plays on special teams for the Falcons in 2025, but he's carrying a $2.2 million cap hit in 2026. He'll land a job somewhere in the NFL in 2026, but the Falcons will likely take the savings.

Chris Lindstrom, OG, A.J. Terrell, CB, Restructures, $21.3 million

Restructuring the contract of a young player on a second (or third) contract is an easy way to clear up cap room. The player gets more guaranteed money further into their career, and the team gets cash to spend on improving the team.

Teams need an owner willing to convert base salary into signing bonuses, and luckily for the Falcons, Blank has never hesitated on splashing the cash. That wasn't always the case in Atlanta.

The drawback is that it ties the team to that player financially for a longer period of time. A.J. Terrell is 28 years old and is financially tied to the Falcons through 2026. After next season, Atlanta could save money by moving on from Terrell's last two years of his contract, which runs through 2028.

If the Falcons are comfortable guaranteeing the 2027 season to Terrell, they could save up to $10.3 million in a restrucure.

Lindstrom is also 28 years old (will be 29 next month), but unlike cornerbacks, that's considered entering the prime of an offensive lineman. Like Terrell, the Falcons get on the right side of Lindstrom's contract after the 2026 season, and the Falcons should feel comfortable pushing the guaranteed money for Lindstrom into his early 30s.

Possible savings on a Lindstrom restructure, according to OvertheCap is $11 million.

Verdict

Without getting overly creative or risky, there's $54 million in cap savings through roster moves and free agency. An aggressive general manager eager to put his own stamp on the team could likely do more.

And remember, the first year of a multi-year deal is almost always the lowest overall cap number. Kirk Cousins' cap hit in 2024 was only $25 million, roughly the same as it will be in 2026 if he's not on the roster.

The Falcons aren't in a great spot financially, but they'll have plenty of resources to add impact players at cornerback, wide receiver, and defensive tackle before the draft.

The next step is finding out who will be making those moves, with Ian Cunningham of the Chicago Bears being a leading candidate for general manager.

Player	Savings (Millions)
Kirk Cousins	$2.1
Darnell Mooney	$11.9
Jessie Bates III	$9.5
Charlie Woerner	$4.8
KhaDarel Hodge	$2.6
Mike Ford	$1.9
Restructures	$21.3
Total	$54.1