Explaining Packers’ Salary Cap After Christian Watson Contract Extension

The Green Bay Packers signed big-money contract extensions with Christian Watson and Jayden Reed. As usual, there’s more than meets the eye.

Here’s a closer look, starting with the impact on the Packers’ salary cap.

Packers Salary Cap Entering Minicamp

According to OverTheCap.com, the Packers are about $21.6 million under the salary cap. That ranks 14th in the NFL and first in the NFC North.

That doesn’t mean the Packers can go on a shopping spree. This time of year, only the top 51 contacts have to fit beneath the cap. After roster cuts at the end of training camp, all 53 contracts on the roster count.

Plus, the team needs to pay for its practice squad – $3.96 million – and will need additional money for in-season roster moves including additions to the team, promoting players from the practice squad to the roster and elevating players from the practice squad to play in games.

League-wide, the 49ers lead the way with $71.7 million of cap space. No other team has even $50 million of space. In the division, the Lions are at $18.5 million, the Vikings at $13.3 million and the Bears at $8.3 million.

Christian Watson’s Contract Extension

Last week, the Packers signed Christian Watson to a four-year contract extension worth $92 million. On top of the one-year extension inked last year, Watson is under contract for five more years through the 2030 season.

The initially reported number of $110.5 million includes the 2026 extension, escalators and incentives.

It’s a huge contract given his injury history, and the Packers have taken it into account in two ways. One, in reality, it’s a two-year contract and go from there. Watson is due a $13 million roster bonus on the third day of the league-year in 2028. If Watson isn’t playing up to expectations, the Packers can move on at that point. Two, the contract includes $10.325 million in per-game roster bonuses – meaning he’ll have to play to get paid.

Here’s the breakdown, with numbers rounded.

Green Bay Packers receiver Christian Watson catches a touchdown pass at the Giants. | Yannick Peterhans / USA TODAY NETWORK via Imagn Images

2026: $1.425 million base salary, $1.825 million in per-game roster bonuses (about $107,353 per game), $10.519 million cap.

2027: $1.5 million base salary, $2.125 million in per-game roster bonuses ($125,000 per game), $11.538 million cap.

2028: $1.5 million base salary, $13 million roster bonus, $2.125 million in per-game roster bonuses, $24.538 million cap. (Would save $3.512 million if released but with more than $21 million in dead cap.)

2029: $19.125 million base salary, $2.125 million in per-game roster bonuses, $29.163 million cap. (Would save $15.55 million if released with about $13.6 million in dead cap.)

2030: $17.375 million base salary, $2.125 million in per-game roster bonuses, $26.2 million cap. (Would save $20.0 million if released with $6.2 million in dead cap).

Jayden Reed’s Contract Extension

Jayden Reed signed a three-year, $50.25 million contract extension during the draft, which keeps him contractually tied to Green Bay through the 2029 season. The deal includes a $16.5 million signing bonus.

Here’s the breakdown.

2026: $1.23 million base salary, $6.785 million cap.

2027: $1.3 million base salary, $2.0 million roster bonus (third day of league-year), $2.075 million in per-game roster bonuses (about $122,000 per game), $10.875 million cap.

2028: $9.05 million base salary, $1.0 million roster bonus (third day of league-year), $2.075 million in per-game roster bonuses (about $122,000 per game), $17.625 million cap. (Would save $7.625 million if released but with $10.0 million in dead cap.)

2029: $10.05 million base salary, $1.7 million in per-game roster bonuses ($100,000 per game), $17.25 million cap. (Would save $12.25 million if released with $5.0 million in dead cap.)

There are escalators for catches, yards and touchdowns, according to Spotrac.

What’s Next?

Green Bay Packers tight end Tucker Kraft (85) celebrates a touchdownagainst the Arizona Cardinals. | Joe Camporeale-Imagn Images

Two down, two to go.

With Watson and Reed out of the way, the next extensions for the Packers to hammer out will go to tight end Tucker Kraft and defensive tackle Devonte Wyatt.

Kraft is entering the final season of his rookie contract. His base salary for the upcoming season is $3.624 million. Before last year’s ACL injury, he had emerged as one of the top tight ends in the NFL and he will be paid as such.

There are only three tight ends in the NFL making $15 million per season: San Francisco’s George Kittle ($19.1 million), Arizona’s Trey McBride (19.0 million and Atlanta’s Kyle Pitts ($15.045 million on the franchise tag).

Last year, McBride signed a four-year, $76 million contract extension. For what it’s worth, the first two years had cap charges of less than $10 million before accelerating to $16.141 million in 2027, $24.175 million in 2028 and $23.175 million in 2029.

They are completely different players as receivers but great in their own way. McBride was first-team All-Pro last year with 126 catches for 1,239 yards and 11 touchdowns. Kraft’s production through eight games put him on track for 68 catches for 1,039 yards and 13 touchdowns.

While Kraft’s extension will take a bite out of Green Bay’s remaining cap space, Wyatt’s might help. The 2022 first-round pick is poised to play this season under the fifth-year option of $12.938 million.

A total of 17 defensive tackles are earning at least $20 million per season. That includes the 49ers’ Osa Odighizuwa, who signed a four-year, $80 million extension while with the Cowboys in 2025. That contract had a cap charge of $6.25 million in 2025 before soaring past $20 million for the final three seasons.

SIGN UP FOR OUR FREE DAILY PACKERS NEWSLETTER

Add us as a preferred source on Google