Josh Allen restructures contract, unlocks $16,700,000 cap space for Bills: report

Quarterback Josh Allen restructured his six-year, $258 million contract to help the Buffalo Bills become salary cap-compliant by the first day of the 2024 NFL calendar year.

As tweeted by ESPN’s Field Yates:

“The Bills have restructured the contract of QB Josh Allen, converting much of his 2024 compensation into a signing bonus, creating $16.7M in 2024 cap space. Allen's updated 2024 cap charge is now $30.356M.”

Spotrac revealed that the Pro Bowl quarterback converted $14.875 million of his 2024 base salary and his $6 million roster bonus. Treating those amounts as signing bonuses, the Bills can pro-rate the cap charge into succeeding seasons.

Through that restructuring, the Bills are just $1.5 million over the $255.4 million salary cap for 2024. It’s a manageable amount to reduce as they beat the March 13, 4 p.m. Eastern Time deadline to go under the cap.

Josh Allen signed his massive extension in August 2021. In May of that year, the Bills exercised their fifth-year option on Allen, worth $23 million, as a placeholder to buy more time for contract negotiations.

Before signing that mega-deal, Allen had already led the Bills to two playoff berths. Likewise, the former Wyoming standout earned Pro Bowl and Second Team All-Pro nods in 2020 after completing 69.2 percent of his passes (396 of 572) for 4,544 yards, 37 touchdowns, and ten interceptions.

Last season, Allen converted $26.42 million of his salary into a signing bonus to clear $21.1 million in cap space.

Meanwhile, the six-year deal has Josh Allen under contract until 2028, when he turns 32. The contract’s original structure included a $16.5 million signing bonus, $100 million guaranteed at signing, and $150 million in total guarantees.

Allen has earned an estimated $95 million since the contract took effect, per Spotrac.

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Josh Allen’s Bills heavily affected by the cap crunch

While the $255.4 million cap for 2024 represents a whopping $30.6 million increase from the 2023 value, the Bills still felt its crippling effect.

At one point, Buffalo was $41 million over the cap. Unfortunately, they’ve addressed this concern by releasing key players like All-Pro safety Jordan Poyer and Pro Bowl center Mitch Morse. Poyer remains a free agent, while Morse agreed to a two-year, $10.5 million deal with the Jacksonville Jaguars.

The Bills also released running back Nyheim Hines, wide receiver Deonte Harty, and defensive back Siran Neil to reduce their payroll. Hines agreed to a one-year deal with the Cleveland Browns while Harty and Neil remain free agents.

Gabe Davis, one of Josh Allen’s passing game targets, will join Morse in Jacksonville on a three-year, $39 million contract.