This is a guest post by Curtis Allen…
A Salary Cap Update as Free Agency Looms
We have been tracking and providing some insight on the Seahawks’ salary cap situation all season and that will continue as we cover a very exciting off-season for the team. I’ll be popping in occasionally to provide some updates and analysis on the cap so we can stay abreast of the issues the team is facing.
I want to begin by telling you the team has no money to spend this offseason. Zero.
Then we will talk about why that is not entirely true and what the Seahawks can do about it.
The team currently sits at $20.2 million of total cap space per OTC, with only $9.04 million of that as effective cap space.
OTC arrives at that effective number by reducing the cap number by the estimated 2023 draft rookie class pool number of $9.66 million and taking another $750k to get to two more minimum-hit roster players to reach 51 total players.
Notes on the Geno Smith Contract
We just received the breakdown on the brilliant Geno Smith contract with the Seahawks. John Schneider has knocked it out of the park by providing a contract that rewards Geno for a great 2022, incentivizes more great play going forward and allows the Seahawks room to choose whether to draft a quarterback of the future this year or to stick with Geno Smith as their main option for the future.
Based on the information we have we can project approximate cap hits for the years of the contract:
2023 — $10.1 million
2024 — $31.2 million ($46.2m if $15m of roster bonus escalators met in 2023)
2025 — $33.7 million ($48.7m if $15m of roster bonus escalators met in 2024)
It looks like there is about $27.3m initially guaranteed with the potential to get up to $40 million in 2024.
The structure and cap hits are eerily similar to the higher-end projection we made in November.
One key note to be aware of: In Mike Florio’s post he noted that the Seahawks have almost no obligation to Smith in 2024:
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The remaining $12.7 million becomes fully guaranteed in February 2024. And the Seahawks can cut him before then.
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This does leave the Seahawks in a fantastic position to draft a quarterback and have relatively little dead cap space on the books if they choose to move on from Smith in 2024.
However, it would appear that the Seahawks have structured the deal to become fully guaranteed a few days after the Super Bowl, which is standard practice for them.
What does that mean? Barring a disastrous season, the Seahawks will very likely let the deadline to cut Smith pass and the salary become guaranteed and then assess their options in the trade market if they wish to move on from him in 2024.
You should also know that the injury guarantee assures that if Smith ends the year on Injured Reserve, that February $12.7m guarantee is practically set in stone.
So, while there is that option for the Seahawks to escape the contract relatively easily, the chances they will take it are not very high. This lends itself to the idea that a trade before the roster bonus hits in March is the most likely path if the Seahawks want to turn the reins over to their second-year quarterback.
As an aside, last year the NFL rejected the first version of Geno’s contract with the Seahawks due to the incentives. They reworked it and got it done quickly.
I wonder how the NFL will view a contract with $30m in “roster bonus escalators” this time? We will see.
Back to the Cap Space
The Seahawks also need to keep a reserve in place for injury replacements and other in-season player transactions. In our offseason opus we proposed setting aside $10m for this purpose but $9.04 million will do.
So, theoretically, they are tapped at the moment for free cap space. With free agency coming next week and the team having needs at spots like defensive line, linebacker, center, wide receiver, backup quarterback and running back — that paints a bleak picture of how they can significantly improve their team apart from the draft.
Fortunately, there are two bits of good news.
The Seahawks can sign players next week even though they do not appear to have any cap room. How?
Let’s Talk Timing and Effective Space
Cap hits derived from contracts are applied to the cap number not when players are drafted or free agent signings and trades are first reported by one of the league insiders but when they are officially signed on the dotted line and then filed with the NFL and the league puts their seal of approval on them. The two dates are very rarely the same.
How does that help the Seahawks? They have a large rookie pool number due to having four high draft picks and 10 total picks in the draft. The draft is in late April. Do most rookies sign a contract the minute they step off the stage after putting a Seahawks hat on and posing with the commissioner for pictures? No. It usually happens later in the summer.
So, while that $9.66 million of cap space is technically earmarked for the draft picks, the Seahawks can spend some of that room for free agents now and make a move to find that room later in the offseason (in a trade or a post-June 1 cut for instance). The same goes with the injury fund of $9.04 million. So, the Seahawks have approximately $18.7 million to spend right now.
Teams do this all the time. In fact, it is not uncommon for a team very close to the cap limit to file a new contract for an acquired player that puts them over the cap and at the same time file a corresponding release or restructure of another player to keep them in compliance with the cap.
So, before we even talk about who is getting cut, traded or renegotiated, it is good to know that the Seahawks have some cap room available to them.
It can be confusing at times, particularly when the number OTC reports is not the ‘real’ number. But we always do our best to make sure you have a solid grasp on what is happening.
Effective space is the other area that can demonstrate that cap hits are not as big as initially thought. The Seahawks only must count their highest 51 cap hits toward their total salary cap number.
You will see the roster balloon up this summer to 90 players as they sign undrafted free agents, practice squad type players and others.
So, at some point this spring or summer the Seahawks will announce they have signed 15 new players and rightly your first thought is ‘what does this do to their cap?’ As long as they are signed for less than the 51st highest paid player, it does nothing to the cap.
What about new players that fall within the top 51? Their full cap hit applies but it also bumps that 51st player off the cap rolls and that mitigates some of the cost.
So, as a hypothetical example, let’s say the Seahawks have $10m of cap room with 51 players signed and they re-sign Travis Homer to a one-year $1.25m deal. His salary adds $1.25m to their cap charges but they also gain the bottom salary player’s cap hit back. Say the current lowest cap hit player on the roster is slated to hit the cap for $750k. The net effect on the cap of signing Homer in this example is to reduce their available cap to spend by only the difference between the two players – $500k.
Their cap number after signing Homer would then be $9.5 million.
Despite having a tight cap situation, they do have some flexibility to build out their roster, assuming they are agreeable to making some corresponding moves to free up some cap room at some point later in the offseason.
Before the Seahawks go shopping though, they must take care of their own. There is a deadline for that coming up quickly as well.
Restricted and Exclusive Rights Free Agents
The Seahawks must tender offers to those two groups by Wednesday March 15, when the league year officially opens or they enter the free agent market and can leave the Seahawks without any recourse.
The most likely candidate for a Restricted Free Agent tender is safety Ryan Neal. Between his excellent play last year and the still-long road of recovery that Jamal Adams has, it seems like an obvious move to tender him and keep him on the roster.
The Seahawks can tender him at the “Right of First Refusal” level of $2.627m (which means they can match any offer he gets from another team but get no compensation if they choose not to match) or the “Second Round” level of $4.304 million (which means they can match any offer he gets from another team and if they choose not to match, they get that team’s second round pick as compensation).
They have three Exclusive Rights Free Agents they can and likely will tender for $940k each – LB John Rhattigan, KR Godwin Igwebuike and CB Michael Jackson Sr. The Seahawks can offer them this minimum number and lock the players out from negotiating with any other team.
Given the Seahawks’ needs at corner and linebacker (as well as special teams), it would not be a shock if they tendered both Rhattigan and Jackson. Igwebuike would seem a lock as well given the bolt of lightning he injected into the Seahawks’ return game down the stretch last year.
Josh Onujiogu is also an ERFA. With zero credited seasons, the Seahawks can tender him for the minimum $750k and basically have no cap hit. They did promote him to the active roster and then immediately made him a healthy scratch for Week 18 last year, likely as a one-time atta-boy pay bump for his season with the team. Maybe they like him more than people think.
That means there is some money to be spent there.
Do not be surprised if they tender Ryan Neal at the $4.304 million number (making their total commitment at safety for 2023 over $40 million. Ack.).
Or they could also forego all that and extend Neal, buying out the tender season. Maybe a 3-year deal in the $14-18 million range would do the trick. Neal gets some bonus money and the security of a deal and the Seahawks get a versatile player they can move forward with and a little bit of cap room. They also put another feather in their quiver of rewarding undrafted, unwanted street free agent types.
Maybe even a bit of a hedge too, if they decide to approach Jamal Adams about a contract reworking.
Anyway, if the Seahawks tender these players that will charge the cap at about $4.87m.
That leaves them with about $13.83m they can shop with in free agency next week.
But they would need to make some roster adjustments to reclaim nearly every dollar they spend just to have enough to pay their rookies and have that in-season cushion.
How can they do that?
Candidates to Reduce Their Cap Hit
The Seahawks have several players they could make some roster changes to in order to make the salary cap work for them. We went into detail on most of them in this piece last fall.
I thought I would summarize the primary options in simple spreadsheet form. I listed the players top to bottom in order of projected likeliness the Seahawks will make some kind of move with them. I also highlighted the most likely moves in green. Have a look:

As you can see, there is a chunk of money the team can make available. At the high extreme end, they can pick up about $40m or so of cap room if they need.
Why is Shelby Harris at the top? He is a big easy target with $8.9m available and at 32 is at a concerning age. There is another reason the Seahawks will likely make a move with him sooner rather than later: He has a $2 million roster bonus due March 19, set specifically for the Seahawks to make a decision on him.
EDIT: It does appear that Harris will be cut — as he has alluded to it on social media — but nothing official has been announced or confirmed. Perhaps they are putting a line in the water to feel out options for a trade?
Nwosu seems a lock for an extension if he is willing to bypass exploring the market in 2024. The max they can pick up is $5.3m but it would be wise to probably count on about $3 million savings at most.
Why is Tyler Lockett’s name on this list? He is not going anywhere in the trade market, unless some team absolutely bowled them over with an offer. But that $5.69 million restructuring is a nice little chunk to have in the team’s back pocket. They could convert some of Lockett’s salary to bonus and push some money out. It could be extremely useful if they need to create some more injury replacement money, or if John Schneider swings a classic in-season trade for a disgruntled star veteran.
Why is Bryan Mone not on the list? He endured a particularly harsh injury last year. He likely will not play in 2023 and his NFL career might be over. There is a very good chance he will be making use of the NFL Injury Benefit, which provides up to $2 million from the team with a $1.2 million cap hit if he is released with a failed physical designation and cannot catch on with another team. There is little cap benefit to be had by considering cutting Mone until we know more about his injury.
Putting This All Together
What does all this mean?
Taking care of just their basic needs could seemingly soak up all of their available cap room once again.
If the Seahawks are determined to improve in a big way this offseason, they will need to be more aggressive this offseason.
That means restructuring players, cutting players you otherwise might not, or having a hard conversation with a player you have invested heavily in, like Jamal Adams.
It also means being aggressive with your salary cap strategy in regards to new contracts. They can do what other teams do, acquire a big piece that helps them tremendously with very little cap room available and just manage the cap to make it work.
I will make the same pitch I made in January. Consider: The Seahawks have bookend tackles, an incredibly talented running back, a limitless corner and more than one pass rusher on very low-cost contracts. Come April they will likely add a few more extremely talented players.
Add to that, John Schneider has just painted a masterpiece with the Geno Smith contract. He has flexibility, options and has not committed cap-wrecking amounts of money to the quarterback position. But at the same time, he could get a very sizable return on the field in 2023 — and longer if they dare draft a quarterback high in the draft. Maybe even more if he manages to trade Geno for a premium draft pick.
Those are all preambles to something much, much bigger. The reason you acquire cheap talent that can produce well on the field is so you can spend on the top available talent to max out that cheap talent and take you deep into the playoffs.
A top player or two does so much more than simply fill a hole on the roster. He covers warts, draws attention and gives players who have yet to fulfill their true potential the opportunity to stretch out and play with abandon.
If they strike with purpose this offseason and display the same level of shrewdness we have seen since this time last year, they could be set up to consistently make deep playoff runs in the years to come.