Packers could face impactful financial considerations following Josh Jacobs’ arrest, and this is how it may impact Green Bay’s salary cap
The running back was arrested this week in Wisconsin, and now his future with the team is murky.
The Green Bay Packers didn’t need such a big problem right at the time of OTAs. But running back Josh Jacobs was arrested on Tuesday following five charges, including domestic abuse and strangulation or suffocation — which Jacobs denies, via his attorneys.
While the team waits on the legal situation to make a final determination, and trade/free agent options could be on the table to replace the starting running back, Josh Jacobs’ own contract situation comes into focus.
Contract situation
For now, Jacobs is under contract with the Packers for two more seasons. He’s set to make $11.5 million in 2026 ($14.542 million against the salary cap) and $13.5 million in 2027 ($16.625 million against the cap). But there are no guarantees left, since the only guaranteed portion of his contract was a $12.5 million signing bonus paid back in 2024.
The Packers don’t have anything to void for legal reasons. It’s just a matter of if the Packers will keep Jacobs or not.
If the Packers do decide to cut Jacobs, they could theoretically go after a proration of his signing bonus. That’s half of the original value, which means $6.25 million. It isn’t secure they would get it, though, and Green Bay doesn’t have a history of making these types of moves.
Financial repercussions
So if the Packers keep Jacobs, nothing changes. He will still make his full salary and count toward the salary cap.
However, if the Packers cut him, there would be significant repercussions. Presuming they don’t go after his signing bonus, the Packers would have $6.25 million in dead money. But because it’s already past June 1, it would be split — $3.125 million in each of the next two years. That means the Packers would create $11.417 million of cap space in 2026 and $13.5 million in 2027.
There are still several steps to take, and the Packers will likely wait to see how the legal matters shake out. But it’s a serious situation, and it may have significant repercussions for the franchise on and off the field.