NEW ORLEANS — When Derek Carr announced his retirement from the NFL on May 10, 2025, the New Orleans Saints faced a turning point-not just at quarterback, but for their financial future.
Carr’s decision, prompted by a lingering shoulder injury, not only ends an 11-year career but also dramatically alters the Saints’ salary cap outlook for the next two seasons.
“Upon reflection of prayer, and in discussion with Heather, I’ve decided to retire from the National Football League,” Carr said in his statement. “For more than 11 years, we have been incredibly blessed, and we are forever grateful and humbled by this experience. It’s difficult to find the right words to express our thanks to all the teammates, coaches, management, ownership, team officials and especially the fans who made this journey so special. Your unwavering support has meant the world to us.”
Immediate Cap Impact: Minimal in 2025
Despite Carr’s departure, the Saints’ 2025 salary cap relief is limited.
The team will recoup Carr’s $1.255 million base salary after June 2, but this saving is offset by the need to replace his spot on the roster, resulting in a net gain of only about $590,000.
The Saints, who entered the offseason with a cap deficit, remain in a tight spot for 2025, but Carr’s retirement does not worsen their situation.
Major cap relief in 2026
The real benefit comes in 2026. Carr’s post-June 1 retirement allows the Saints to spread his remaining dead cap hit, reducing what would have been a $59.67 million charge by nearly $29 million. Instead of facing a crippling cap burden, New Orleans will have much-needed flexibility to reshape the roster and pursue free agents.
“This arrangement is an unexpected win for New Orleans despite the loss of their starting passer,” wrote Mike Triplett at LouisianaSports.net. “The Saints are currently expected to be $42.7 million over the salary cap next season. That number is now set to take a steep drop.”
Carr’s decision to forgo his $30 million guaranteed salary for 2025 in exchange for keeping his $10 million roster bonus and not being asked to repay his signing bonus was a compromise that benefited both sides. Had he opted for surgery and remained on injured reserve, the Saints would have faced a much larger cap hit in 2025 and postponed the issue another year.
Roster Implications
With Carr’s exit, the Saints’ quarterback room now features only young, untested players: Tyler Shough, Spencer Rattler, and Jake Haener.
The team may use its new-found cap flexibility in 2026 to target a veteran quarterback or bolster other positions.
Looking Ahead
The Saints have long been known for their creative, if risky, salary cap management. Carr’s retirement, while ending an era, provides the team with a rare opportunity to reset their financial strategy.
As the NFL’s 2025 salary cap rises to $279.2 million per team, New Orleans can finally look forward to a future with fewer financial constraints and more options for roster construction.
“This relief in salary-cap space could be advantageous for bolstering the roster or at least seeking a veteran backup quarterback, given the team’s current lack of experience following Carr’s departure,” one league insider said in the New York Post.
The Saints now face the challenge of building a new identity-on the field and on the balance sheet-without Derek Carr, but with a clearer financial path ahead.
[…] 34-year-old quarterback’s candor about walking away from a $30 million base salary for the 2025 season represents a shifting perspective in professional […]