Sports agent Leigh Steinberg talks to OutKick about how he believes the Rams were able to bring Aaron Donald back while remaining compliant with the salary cap.
Aaron Donald officially made his return to the Los Angeles Rams earlier this week. But how did a team with so many expensive contracts fit Donald under the salary cap?
According to famed sports agent Leigh Steinberg, it's because the Rams do a great job with "caponomics."
The Rams did it by "creating cap room, redoing someone else's contract so that there's less salary involved and by giving that player a bonus," Steinberg told OutKick in a recent interview. "If a team is creative, they can move other contracts around and create cap space."
Los Angeles Rams defensive tackle Aaron Donald plays against the Arizona Cardinals at State Farm Stadium in Glendale, Ariz., on Nov. 26, 2023. (Mark J. Rebilas/USA TODAY Sports)
After falling short against their NFC West rival, the Seattle Seahawks, in the NFC Championship Game last season, the Rams went on a spending spree this offseason.
They gave MVP-winning quarterback Matthew Stafford a one-year, $55 million contract extension, traded for Kansas City Chiefs star cornerback Trent McDuffie and signed him to a four-year, $124 million contract extension, signed cornerback Jaylen Watson to a three-year, $51 million contract, and acquired Cleveland Browns superstar Myles Garrett before signing him to a five-year, $208 million contract after redoing his deal following the trade.
Despite handing out all of those massive deals, the Rams were still able to sign Donald to a one-year, $20 million deal, despite being up against the salary cap.
So how, exactly, are the Rams making it work? Exactly as Steinberg said: by being creative.
For Stafford’s deal, the Rams have pushed his contract further into the future, spreading out the cap hit using void years, meaning Stafford’s contract will count against the salary cap in even though he won’t be on the team. Stafford’s contract is spread out through the 2031 season.
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Aaron Donald No. 99 of the Los Angeles Rams hugs head coach Sean McVay prior to a game against the Detroit Lions in the NFC Wild Card Playoffs at Ford Field on Jan. 14, 2024, in Detroit, Mich. (Getty Images)
As for McDuffie, the Rams backloaded his contract. This season, McDuffie’s cap hit is just $10.8 million, but that rises to $30.8 million next season and will hover around that figure for ensuing three seasons.
Garrett’s contract is structured similarly to both Stafford’s and McDuffie’s, with a lower cap hit in the first year and larger hits later in the deal while also using void years. The reigning Defensive Player of the Year’s contract runs through 2030, but his cap hits are spread through 2034.
Here are his cap hits each year through 2034: $8.4 million, $15 million, $27.57 million, $39.875 million, $48.17 million, $17.523 million, $11.5 million, $7.6 million and finally $3.3 million.
