The Baltimore Ravens adjusted Roquan Smith's contract to create cap space for the 2024 season, as NFL Network's insider Ian Rapoport reported on Monday.

The #Ravens have done a simple restructure of LB Roquan Smith’s contract, creating $4.875M in cap space, source said. A little breathing room to operate for the season.

— Ian Rapoport (@RapSheet) September 2, 2024

However, the amount freed up is not exactly what was reported. It had been mentioned that the move would open up $4.875 million in space, but that's actually the money converted from base salary to a new signing bonus. Prorating it through the four years of the deal, without void years after it, the real savings are $3.657 million. The topic was brought up by Ravens cap analyst Brian McFarland, from Russell Street Report.

I believe Ian has some numbers mixed up here. Smith had a $6M salary, which reduced to the vet minimum of $1.125M would mean that they restructured $4.875M, but the Cap space created would be $3,656,250 because the $4.875M is prorated over the 4 yr of the deal, including 2024. 1/ https://t.co/yDIeA4m5eR

— Brian McFarland (@RavensSalaryCap) September 2, 2024

---

How it works

Roquan Smith is slated to make $18 million in 2024. Of that total, $12 million are a roster bonus that has already been paid on March 17. The roster bonus has been prorated as well, so the cap hit is $3 million in each of the next four seasons (including 2024).

Click here to accept Marketing cookies and load this content

Smith's remaining earnings this year were a $6 million base salary, which would be paid throughout the regular season. So, it was really not feasible to open up $4.875 million, because the Ravens had to keep at least $1.125 million (minimum salary) as base.

By converting $4.875 million to a signing bonus, Baltimore can spread this amount over the life of the contract, so the hit is $1.218 million per year over the next four years. Make the math, $4.875 million minus $1.218 million, and you get the $3.657 million savings.

The Ravens could have opted to add a void year to spread the amount even more, and the savings would jump to $3.9 million, but the team decided not to do so to avoid dead money in the future.

Ultimately, Roquan Smith's cap hit in 2024 will be $1.125 million in base salary, $4.5 million of the original signing bonus, $1.218 million of the new signing bonus, and $3 million of March's roster bonus.

It would've been a $13.5 million cap hit before the adjustment, it's going to be a $9.843 million cap hit after all.

The Baltimore Ravens acquired Roquan Smith from the Chicago Bears during the 2022 season for linebacker AJ Klein, plus second- and fifth-round picks. In January 2023, Smith signed a five-year, $100 million extension. He's under contract with the Ravens through 2027.

Ravens reveal biggest challenge they’ll face when trying to slow Chiefs’ Patrick Mahomes in Week 1

The Ravens defense will have a tough assignment.