Navigating the 2024 NFL Salary Cap: Chargers
The Chargers no longer have the luxury of a top QB on a cheap contract. Let's see what they can do to get under the cap in 2024.
The Los Angeles Chargers have spent the past several seasons building a roster around quarterback Justin Herbert. This included keeping certain veterans around and signing or trading for others. All of this was done to take advantage of Herbert's cheap draft pick contract.
However, not only are the days of Herbert on a cheap deal over, but the Chargers don't exactly look like a Super Bowl contender this season.
The Chargers are 4-4 going into this week and, while they are coming off back-to-back wins over the Bears and Jets, they lost back-to-back games before that to two playoff contenders: the Chiefs and the Cowboys.
It's possible that the Chargers could get into the playoffs, given that there are multiple teams they face who aren't playing well. However, the question is how they will look against legitimate contenders such as the Chiefs (who they face in Week 18), the Ravens (Week 12) and even the Bills (Week 16).
The Chargers restructured multiple contracts going into the 2023 season to gain cap space and, earlier this season, unloaded cornerback JC Jackson, who they signed to a five-year, $82.5M contract back in 2022, to the Patriots in a late-round draft pick swap.
Going into 2024, the Chargers are projected to be $41.6M over the cap once they get the roster to 51 players. They have 38 players under contract and, while they will have some carryover from 2023, it won't be enough to make up the difference.
The Chargers have a number of aging players on the roster, though when it comes to free agency, they don't have a lot of players that are priorities to retain. Still, the Chargers are at the point that they have to ask themselves how much longer they can keep going with the older players they have under contract.
If the Chargers fail to make the playoffs, they could make a change at the head coaching position and it's even possible they move on from general manager Tom Telesco. Though Telesco has done plenty of good things as GM, if Brandon Staley is fired at season's end, it will mark the third time that a head coach Telesco hired is subsequently let go.
Regardless of what happens with the coaching and GM positions, the Chargers do have to figure some things out with this roster. Let's go over the moves they'll have to make to become cap compliant.
Joey Bosa or Khalil Mack, pick one, move the other: The Chargers acquired Mack in a 2022 trade with the Bears and he's been effective. Meanwhile, Bosa has missed time with injuries, but he's several years younger than Mack. Cutting or trading Mack would free $23.25M in cap space and go a long way to resolving the Chargers' cap issues.
If they moved Bosa, they'd free $14.4M as a straight cut or trade. Bosa's recent injury history makes it risky to restructure his deal. However, because he'll be 29 next year, it may make more sense to keep him but avoid touching his contract. That way, if his health remains an issue, the Chargers will have an easier time getting out of his deal in 2025.
Cut WR Mike Williams: The Chargers gave Williams a three-year, $60M contract in 2022. He was coming off a quality season in 2021 but his production dropped in 2022 and he missed four games. This year, his season ended after three weeks because of a torn ACL. He has no guaranteed money left and, while the Chargers would have to pay him an injury settlement, better to do that than keep him at his massive cap charge. Cutting Williams frees $20M in cap space.
Leave WR Keenan Allen's contract alone: Though Allen continues to play well despite his age, the Chargers have to be careful here. Allen will be 32 years old next year and, if he is extended, it will mark the fourth contract he has received from the Chargers. (Allen was drafted in 2013, extended in 2016 and extended again in 2020.) The Chargers might be able to keep him for 2024 (the final year of his current deal) but they don't want to restructure or extend, lest decline set in next season.
Consider a restructure for C Corey Linsley unless he retires: Linsley is dealing with a heart issue and there's no telling when he might return. If Linsley opts to retire, the Chargers would gain $8.9M in cap space. If he is able to play and wants to do so, it might be OK for the Chargers to do a small restructure on his deal to get some wiggle room. He has two years left on his deal and the Chargers could safely convert about $5M of his $11.5M base salary for 2024 into a signing bonus, but still be able to get out of his deal in 2025 without much trouble.
Cutting Williams and Mack, plus a small restructure for Linsley, would give the Chargers enough wiggle room to fill out the roster. They would have to avoid big spending in free agency, but money would then be spent on deals for their own players. (For example, the Chargers are likely to want to extend Rashawn Slater and he'll be eligible for one next season.)
The Chargers don't need to rebuild for 2024, even if they do make changes at the GM and head coach positions. However, they do need to rethink their position because they no longer benefit from a quality QB on a cheap contract.
Next week, we'll look at a 2023 playoff contender, the Miami Dolphins.