Derek Carr shocked the NFL world on Saturday, abruptly announcing his decision to retire at age 34 due to complications from the shoulder injury that cut short his 2024 season. While there were rumors that his shoulder could cost him some or all of the 2025 season, retirement wasn't on anyone's radar — least of all the New Orleans Saints, who now face a quarterback room of Spencer Rattler, second-round pick Tyler Shough and Jake Haener.
It's a heartbreaking end to Carr's career, a significant shakeup to the Saints' short- and long-term outlook and a decision that could carry ramifications for several teams around the league. Beyond all that, though, it will also reshape New Orleans' salary cap picture, one that the team has kept muddy for years now but becomes slightly clearer now.
How Derek Carr retirement affects Saints salary cap situation
Carr signed a four-year, $150 million contract with the team back in 2023. In classic Saints fashion, the team restructured that deal in March, kicking the financial can down the road in exchange for short-term flexibility. That restructuring lowered Carr's 2025 cap hit to $20.4 million, but bloated his 2026 hit to a whopping $69.2 million.
Carr's retirement will give the Saints roughly $30 million in cash and salary cap relief, according to NFL Network's Mike Garafolo. Garafolo reports that the team had been trying to seek reimbursement on his signing bonus for this year; instead, Carr will get to keep both that bonus and the $10 million roster bonus he received in March.
That's a significant development; the Saints were staring down paying Carr some $40 million to languish on Injured Reserve for the 2025 season, but now are out from under that money. Moving forward, his decision to retire will leave New Orleans with cap hits of $13.2 million for this year and $35.6 million for next, a far cry from the $69.2 million he was initially owed. His deal comes off the books entirely in 2027.
Saints fans understandably have mixed feelings about Carr's all-too-brief tenure in New Orleans, but it's inarguable that he did the team a solid with his decision here. Rather than trying to push through and salvage something from the rest of his NFL career, he's decided to bow out, and he's made the Saints' life much easier because of it.