Packers Restructure Preston Smith to Dig Out of Salary-Cap Hole

The Green Bay Packers and Preston Smith agreed to an incentive-based renegotiation to help the team approach the $182.5 million salary cap.

GREEN BAY, Wis. – The Green Bay Packers and outside linebacker Preston Smith have agreed to a renegotiated contract that will greatly reduce his salary-cap hit for the 2021 season.

It’s a win-win in this year of a shrinking salary cap and veterans being dumped around the NFL as teams cut corners to get to the cap by the start of the league-year on Monday. With the restructure, the Packers will retain a key defender while Smith will stay employed rather than enter a treacherous free-agent market.

A source told SI’s Packer Central that Smith can match or even surpass his income – a combined $10.85 million in salary ($6.85 million) and roster bonus ($4.0 million) – if he reaches certain sack thresholds. NFL Network's Ian Rapoport had those thresholds.

Sack incentives details for Preston Smith:
— $500K for 6 sacks.
— $750K more for 8 sacks.
— $750K more for 10 sacks.
— $1.2M more for 12 sacks.
— $1.2M more for 14 sacks.
Total possible: $4.4M

Smith had 12 sacks in 2019, so it’s right there. Either way, Preston Smith stays. https://t.co/wGVZafc1We

— Ian Rapoport (@RapSheet) March 13, 2021

The contract will “significantly” reduce the sting of his $16 million cap charge. The source said it will reduce his cap number by about $7 million. Paired with safety Adrian Amos’ restructure, the Packers are near the cap after starting the day about $9.7 million over the $182.5 million cap.

General manager Brian Gutekunst recently said he expected Smith to be part of the roster in 2021. The renegotiation assures that will be the case.

“Preston’s played a lot of really good football for us and certainly we’d like to have him back next year,” Gutekunst told beat writers on March 2. “He’s under contract, so we certainly expect him to be back.”

With a $1 million base salary and $6.25 million signing bonus, according to Rapoport, OverTheCap projected a new cap charge of $8.75 million. That would be a reduction of $7.25 million. Based on OTC's numbers from the start of the day, Green Bay is now $1.56 million over the cap with more room to be gained with potential revamped deals for Aaron Rodgers, Davante Adams and Za'Darius Smith.

The cap reduction is not much less than the $8 million from an outright release. That kind of dead money is something the team has generally avoided. In 2020, it had $8.7 million of dead cap money, with $3.67 million of that being Jimmy Graham.

The deal did not impact the $11.35 million base salary he is due 2022, his final year of a four-year, $52 million contract, the source said.

Smith had a banner first season in Green Bay, with his 12 sacks keying the team's improvement from 6-9-1 to 13-3 and a trip to the NFC Championship Game. Smith, however, had only four sacks last season. According to Pro Football Focus, he went from 23rd with 55 total pressures to 61st with 26.

The Packers are counting on Smith to have a bounce-back season and now Smith is counting on it to make the money he was due. History says that will happen. Oddly enough, in odd-numbered years, Smith has averaged 9.3 sacks and forced five fumbles. In even-numbered seasons, Smith has averaged 4.2 sacks and not forced any fumbles.

He did have five tackles for losses on running plays last year compared to only one in 2019, according to Sports Info Solutions. And his length can make life miserable for quarterbacks, especially on bootlegs.

“I think we ask a lot of Preston. He plays a lot of roles for us,” Gutekunst said. “He’s such a versatile athlete. He can do so many different things. So, while those (pass-rushing) numbers might’ve been down, I think he affected our football team in a very positive way. So, I think there are some things between the numbers there where his value doesn’t always show. But he’s kind of been that way all his career. If you go back to Washington, his sack numbers were always a little bit up and down. But the way he affected the game with his length, not only as a pass defender but in the run game, as well, he’s a really good player for us and he’s got a lot of good years left, that’s for sure.”

While 2019 first-round pick Rashan Gary is ready for more playing time, the Packers would have no proven depth behind a starting tandem of Gary and Za'Darius Smith. Rookie Jonathan Garvin, a seventh-round pick, was inactive for the final eight regular-season games and both playoff contests. Even with one of the worst special teams in the NFL, Garvin couldn’t get on the field. Former undrafted free agent Randy Ramsey emerged as a key weapon on special teams but was a minimal factor in 75 snaps on defense. Keeping Preston Smith means the Packers have a loaded trio at a critical position.