5 Ways John Schneider, Seattle Seahawks Can Fix Salary Cap Predicament

While the Seahawks have a "tight" cap situation right now, John Schneider has several mechanisms he can use to rectify the problem in quick fashion. Which option is most likely?

Set to open rookie minicamp on Friday and kick off OTAs next week, the Seattle Seahawks will begin working to sign their new eight-player class headlined by first-round pick Byron Murphy and third-round guard Christian Haynes as they roll towards the 2024 season.

But while they start inking their latest crop of rookies to slotted four-year contracts, general manager John Schneider will have to figure out how to shore up Seattle's salary cap situation. Per OverTheCap.com, when accounting for rookies on the payroll, the team has nearly a $1.4 million effective cap deficit, which means moves will have to be made to become compliant.

“We are fairly close [to the cap limit],” Schneider stated in an interview with Seattle Sports 710 on Thursday. “We budgeted for that, but yeah, we’re pretty tight.”

As Schneider noted talking with hosts Dave Wyman and Bob Stelton, the Seahawks were able to address similar issues around this time last year by restructuring contracts for safeties Jamal Adams and Quandre Diggs. But converting base salary to signing bonuses for both players helped lead to the decision to release both of them this offseason, so such mechanisms can have negative consequences down the line.

What can Schneider do this time around to give Seattle much-needed cap wiggle room? Here are five alternatives in order from most likely to least likely that could be on the table:

1. Release or rework tendered contracts for Mike Jackson and/or Jon Rhattigan.

Last month, Jackson and Rhattigan signed their qualifying offers to stay with the Seahawks with their one-year contracts being worth $3.116 million and $2.985 million respectively. But while Schneider gave Jackson an original round tender and Rhattigan a right of first refusal tender, neither of those contracts carry any guaranteed money for 2024. This means that the organization could release one or both of them tomorrow and instantly create more than $6 million in instant cap relief. If the players were willing to do so, a renegotiated deal with a smaller cap hit could also be an option.

Starting all 17 games in 2022, Mike Jackson has been rock solid when Seattle has put him in the lineup, but drafting a pair of cornerbacks last week may put his roster spot on notice due to a cap hit north of $3 million in 2024. / Joe Nicholson-USA TODAY Sports

Neither of these would be new tactics for Schneider, who has released and reworked deals for restricted and exclusive rights free agents in the past to lower cap hits. Considering Jackson's value as a starter-caliber cornerback and Rhattigan's contributions on special teams, it's hard to envision Seattle would want to lose either of them. But after drafting cornerbacks Nehemiah Pritchett and D.J. James as well as linebacker Tyrice Knight last week, both players have become more expendable, at least at their current price.

2. Restructure DK Metcalf's contract by turning base salary into a signing bonus.

While rumors continue to circulate about Metcalf's future in Seattle even after the conclusion of the draft, Schneider doesn't have any plans to move the star receiver in a trade and he remains a foundational piece for the franchise moving forward under a new regime. If the team plans to do anything with his contract, executing a restructure would open up almost $6 million in cap space, kicking the can down the road to 2025 in the last year of his current deal.

In the past, Schneider has been averse to restructured contracts because of the incurred costs in future seasons, but with a new cap specialist in Joey Laine now running the books, that may change. Due to a rising salary cap each year under the current CBA, those credit card expenditures have become more manageable for franchises, and Metcalf could be due an extension next summer anyway, which would likely lower his 2025 cap hit.

3. Extend Julian Love's contract past 2024 on a two or three-year pact.

If Seattle wants to avoid releasing Jackson or Rhattigan and Schneider doesn't want to dip back into the restructuring game after already doing so with Geno Smith and Tyler Lockett earlier in the offseason, extending Love's contract through 2025 or 2026 would create an opportunity to manufacture cap space in the present. Signed to a two-year deal before the 2023 season, the former Notre Dame standout had a strong first year in the Pacific Northwest, making the Pro Bowl with 123 tackles, four interceptions, and two forced fumbles.

Since he's only 26 years old and has the positional flexibility to play both safety positions as well as the slot, Love should be a prime candidate for an extension. If there's a reason why Seattle wouldn't go down this road, Schneider may want to see him replicate his production from last season to prove it wasn't a fluke before investing significant money in him long-term. With that said, of the players heading to free agency next spring, nobody is more deserving and with back-to-back years of 100-plus tackles and two or more interceptions, there's enough of a sample size to warrant a new deal now.

4. Restructure Geno Smith's contract by turning remaining base salary into a signing bonus.

Even though Seattle already turned a roster bonus into a signing bonus for Smith to create $4.8 million in cap space in March, the team could still kick more money to the last year of his contract for even more cap relief. By restructuring his remaining $11.49 million base salary into a signing bonus, per OverTheCap.com, Schneider could free up an additional $5.937 million to put the team back in the black.

Unlike Metcalf, however, there are a few factors that may lead Schneider to be less keen on the idea of restructuring Smith again. Doing so would balloon his cap hit to $44 million in 2025, and with him set to turn 34 years old during the season and Sam Howell now on the roster as a potential heir apparent under center, it's not a given that the team will want to extend him. How he performs this season running Ryan Grubb's offense will dictate his future with the franchise, but a further inflated cap hit would make it tougher to keep him without a new deal.

5. Shop Jarran Reed or Dre'Mont Jones on the trade market for future draft compensation.

In terms of likelihood, Schneider probably doesn't want to subtract from a talented defensive line and would prefer all of the other aforementioned options. But after drafting Murphy with the 16th overall pick in the NFL draft, the group has become a bit of a logjam and the Seahawks currently rank ninth in overall defensive line spending, so if there's a position where they could afford to trim some fat off the books, moving a veteran such as Reed or Jones for a future draft pick to save north of $4 million may make sense. Waiting until after June 1 would create even more savings.

Now 32 years old, even after a resurgent season with seven sacks last year, Reed has quite a bit of wear and tear on his tires, which could make moving him difficult. At the same time, however, any team acquiring him would only absorb $4.78 million in 2024 for a quality starter who can line up at multiple positions up front, so a sixth or seventh-round pick may be possible in exchange for his services. Jones is significantly younger, but he's coming off a disappointing first year with the Seahawks and has a $23 million cap hit in 2025, so trading him would be a major challenge.