Analyzing the financial impact of the NY Jets moving on from Aaron Rodgers

The NY Jets will be in the market for a new quarterback this offseason after the decision was made to officially move on from Aaron Rodgers following a disappointing two-year stint with the organization.

The decision was a complicated one for both Rodgers and the Jets, with several important factors to consider. Arguably the most significant of these was the financial ramifications.

The Jets would have faced a massive $63 million in dead cap if they brought Rodgers back for another season. Had he been designated as a post-June 1 cut after 2025, the team would have been stuck paying $21 million in dead cap in 2026 and $42 million in 2027.

That's just not a scenario the Jets wanted to deal with. That said, the Jets still have to pay the piper. What are the specific financial ramifications of moving on from Rodgers this offseason and how much will he count against the salary cap?

How much does Aaron Rodgers count against the NY Jets' salary cap?

The Jets have two options with Rodgers. They can opt to release him at any point and take the full $49 million dead cap hit upfront. Doing so would incur a large dead cap penalty in 2025 but would give the organization a clean slate in 2026 and beyond.

It would also allow Rodgers to sign with a new team before the start of the new league year on March 12. Rodgers is theoretically free to speak with other teams regardless, but he can't sign until he's officially released.

The other, and more likely, option is to designate him as a post-June 1st release. NFL teams can designate two players each year as post-June 1st cuts, allowing them to spread a player's dead cap hit over two years rather than absorbing it all in one.

If a player is released or traded after June 1st, the team only has to account for the current year's prorated signing bonus on that year's cap, with the remaining dead money pushed to the following year. This strategy helps teams manage their salary cap more effectively by spreading out the financial impact.

In the case of Rodgers, the Jets would be on the hook for $14 million in dead cap in 2025 and an additional $35 million in 2026. This would provide the Jets with more flexibility in the short term, but it creates more financial strain in the following year.

This also means the Jets will need to carry Rodgers on their roster until the start of the new league year in March. His cap number for 2025 will remain at $23.5 million from now until June 2nd when he is officially free to sign with a new team.

Yes, that means the Jets wouldn't receive the $9.5 million in cap relief until after free agency. Of course, the alternative would be taking the full $49 million dead cap hit upfront, which would limit their spending this offseason regardless.

There are also additional fallout financial decisions to consider. The Jets moving on from Rodgers almost certainly means the team will do the same with Davante Adams and Allen Lazard, freeing up even more cap space.

The Jets would save just shy of $29.9 million in cap space by releasing Adams, taking on a dead cap charge of $8.36 million. Releasing Lazard comes with $6.6 million in cap savings but $6.55 million in dead cap due in part to the void year the team added to his deal in 2027.

Either way, the Jets will face a significant dead cap bill in 2025 and likely 2026 if they opt for the post-June 1st route with Rodgers. The good news, however, is that it won’t be nearly as large as if they chose to keep him for another year.

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