Derek Carr’s retirement from the New Orleans Saints will come with huge financial benefits for the organization.
Carr stunningly announced his retirement on Saturday, citing the injury to his right shoulder as the primary reason. The Saints appear to have worked with Carr to settle any outstanding disputes about his contract, and the settlement is very beneficial to the organization financially.
The Saints are allowing Carr to keep the $10 million he received in bonuses for this season. Carr, meanwhile, is giving up his guaranteed money for 2025, which will save the organization $30 million.
A Saints helmet on the bench
Nov 5, 2023; New Orleans, Louisiana, USA; Detailed view of the New Orleans Saints helmet on the team bench against the Chicago Bears during the first half at the Caesars Superdome. Mandatory Credit: Stephen Lew-USA TODAY Sports
Both sides gain financially — By retiring, Carr forgoes the $30M guaranteed this season, while the Saints won’t seek reimbursement for the $10M roster bonus and signing bonus. https://t.co/uAyfRErYTZ
— Ian Rapoport (@RapSheet) May 10, 2025
In addition, the two sides worked together to allow the cap hit to be split over two seasons.
The retirement will be filed after June 1, which lets the team split the cap hit. So, the sides are clearly in accord on all of this and there’s been cooperation on all sides despite speculation.
— Nick Underhill (@nick_underhill) May 10, 2025
The Saints had opened up a good amount of cap room in February by renegotiating Carr’s contract. The quarterback’s retirement figures to open things up long-term for the team, as the organization has spent a long time trying to contend and kicking cap obligations down the road. Carr’s retirement gives them a bit of a reset on that front.
With Carr stepping away, the Saints do theoretically have the cap space to get in the market on another veteran quarterback if they choose to.