What Were Packers Thinking With Rodgers’ Contract?
INDIANAPOLIS – With Aaron Rodgers coming off back-to-back MVP seasons and with the Green Bay Packers in dire need of cap space to take another shot at reaching the Super Bowl, the team and franchise quarterback agreed to a three-year, $150 million contract on March 15.
It was perhaps the most complicated contract in NFL history, an acknowledgement of the complicated situation revolving around an aging MVP quarterback who was the straw that stirred the drink.
If Rodgers plays in 2023, a $58.3 million option will make up the bulk of his $59.5 million salary. If Rodgers plays in 2024, a $47 million option will be triggered.
Officially, Rodgers is under contract for four seasons, though the 2025 and 2026 seasons are place-holders to help with the accounting.
That means the $58.3 million option can be spread over the cap for the next four seasons. His $31.6 million cap charge is relatively affordable, ranking only ninth among quarterbacks.
What if Rodgers decides he wants to play in 2024, as well? That would require the Packers flipping the switch on that second option. Thus, the Packers would be accounting for both options, meaning a cap charge of $40.7 million.
As noted by CBS Sports’ Joel Corry in his contract breakdown, if Rodgers were to retire after the 2023 season, the Packers would be dealing with a $68.2 million dead-money charge on the 2024 cap. If Rodgers were to retire after the 2024 season, the Packers would be reeling from a dead-money charge of $76.8 million on the 2025 cap.
What were the Packers thinking by agreeing to a contract that tied their hands financially?
“I think obviously after ‘21, he was coming off two MVP seasons, and I think there were certain things we had to do to retain him and I think that was important for us,” general manager Brian Gutekunst said at the Scouting Combine on Tuesday.
“Certainly, when we went into that, it wasn’t just for ’22. But I think Russ (Ball) did a really good job of kind of creating some options and flexibility in there that, no matter what happened, we’d be OK.”
On paper, there’s limited flexibility for this year. Rodgers would be playing under a minimum base salary of $1.165 million in 2023.
As for the two hefty bonuses, that money can be prorated over five years. With Rodgers under contract for the next four seasons, the Packers could add only one void year to the contract to help with the upcoming $58.3 million bonus. That would create about $2.9 million of cap savings – a rather minimal amount.
Coming off his back-to-back MVP seasons, Rodgers had the leverage and was able to squeeze the Packers. Rodgers was the obvious best option at quarterback and the Packers needed the cap space, so the Packers paid the piper.
The leverage might have changed, with Rodgers coming off a down year, the team coming off a losing season and Jordan Love (supposedly) waiting in the wings.
“There’s some options there,” Gutekunst said. “Obviously, if he comes back and plays this year, we’ll do some restructuring and some different things to alleviate a little bit of that.”
One option would be mutually agreeing to tear up the contract. Unlike a signing bonus, which is guaranteed the moment pen hits paper, options are guaranteed only when triggered. So, the Packers can find a better structure if both sides agree. However, chances are, Rodgers wouldn’t just willingly forfeit all that guaranteed money out of the goodness of his heart.
A trade is another option. The contract, complicated as it is, makes it easier to construct a trade.
“Usually, the Packers include large roster bonuses, which they tend to convert to signing bonuses – see Jaire (Alexander), Preston (Smith), etc.,” said Ken Ingalls, an independent Packers cap analyst. “But these option bonuses are pre-spread at signing to keep the cap numbers low to better facilitate a trade.
“Otherwise, the acquiring team would need to have $60 million of cap space to take Rodgers’ contract if it were a roster bonus. Even more, the team put these trigger dates far into the future to the end of preseason instead of their typical Day 3 of the offseason. The only reason to do this is to make it possible for a new team to take on this bonus, even in a post June-1 trade scenario.”
Aside from some text messages, Gutekunst said he and Rodgers have not talked since the end of the season. If Rodgers decides he wants to play in 2023, the next steps would be determining whether Rodgers will play in Green Bay or elsewhere. If it’s Green Bay, then they’ll talk about the finances.
“He’s a great player,” Gutekunst said, “but until we have those conversations, I think all options are on the table right now. But we really need to have those conversations. We want what’s best for the Green Bay Packers, what’s best for Aaron. So, we’ll get to that once those conversations happen.”
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