How can a player’s cap hit be less than his total compensation? Using a subtle but helpful provision in the CBA.
The Green Bay Packers broke out one of their favorite salary cap-related mechanisms this week when they signed linebacker Isaiah Simmons to a one-year contract. Simmons, a five-year NFL veteran, got a contract worth $1.17 million in base salary with a $167,500 signing bonus, according to Overthecap.com.
However, Simmons’ cap hit will be less than the total amount of cash he would earn on the deal. Although that number is $1,337,500, his cap hit will be just $1,197,500 thanks to the NFL’s veteran salary benefit provision.
That provision states that a player with at least 4 credited seasons can cost a team a lower cap charge than his actual compensation under certain circumstances. The contract must be a one-year deal, it must have a base salary equal to the league minimum for the player’s experience level, and it must carry additional compensation (such as a signing bonus, roster bonuses, or workout bonuses) not to exceed $167,500.
When those criteria are met, the player’s cap charge is reduced to the equivalent of the two-year veteran’s minimum base salary, plus the incentives. In 2025, the two-year veteran minimum is $1.03 million, and therefore adding in the bonus money brings Simmons’ cap charge up to the $1,197,500 number.
This cap mechanism helps to ensure that it is not overly financially detrimental for a team to employ a veteran player at a higher minimum base salary compared to a younger player on a minimum contract. As such, it is a tactic that Green Bay has used frequently in recent years.
Most notably, linebacker Eric Wilson played under this type of contract in both 2023 and 2024. However, Wilson signed a larger deal to return to the Minnesota Vikings for 2025, getting a $1 million signing bonus in addition to more compensation in per-game roster bonuses and a workout bonus.
Simmons will compete with the likes of Kristian Welch — who is also on a veteran minimum benefit deal, albeit with no bonus money — and UDFA Jamon Dumas-Johnson for a spot on the roster this fall.