Derek Carr shockingly announced his retirement from the NFL due to a shoulder injury. How does his sudden retirement impact the New Orleans Saints’ financial situation?
Derek Carr Retires After 11 Seasons
Derek Carr has officially retired after 11 NFL seasons, citing a serious shoulder injury that put his future in doubt. The Saints confirmed the news in a statement on Saturday, May 10.
Derek Carr has announced his retirement.
In late March, while ramping up his preparation for the 2025 season, Derek experienced pain in his right shoulder. It was his first time throwing a football at significant volume since recovering from both a concussion and left hand… pic.twitter.com/SrcJEzDDnU
— New Orleans Saints (@Saints) May 10, 2025
“In late March, while ramping up his preparation for the 2025 season, Derek experienced pain in his right shoulder. It was his first time throwing a football at significant volume since recovering from both a concussion and left hand injury sustained during play on December 8, 2024. Derek immediately contacted the Saints Medical Team,” read the Saints’ account posted to X.
“Eventually, medical scans determined objectively that Derek sustained a labral tear and also had significant degenerative changes to his rotator cuff.
“Since that time, Derek, his representation, the Saints Medical Team and outside medical experts have worked together to determine the best path forward. Surgery was an option, jeopardizing the entire 2025 season, yet there was no guarantee Derek would return to the level of strength, function and performance of play to which he was accustomed.”
The situation had been developing throughout the offseason. According to Nick Underhill of NewOrleans.Football, Carr sought out a potential trade earlier this offseason. And the relationship between him and the Saints was seemingly in a precarious situation.
Carr actually played solid football for New Orleans outside of his injuries last season. According to PFSN’s QB+ metric, he ranked as the NFl’s No. 11 quarterback in 2024.
The Saints went 5-5 in games where Carr played and 0-7 without him. Again without him, New Orleans hopes it will fare better than it did last season without Carr.
Now, Tyler Shough, the team’s second-round pick in last month’s draft and the first quarterback drafted by the new regime in New Orleans, seems poised for the starting job. He will compete with Spencer Rattler, who was drafted last year by the previous regime but showed flashes in a limited sample size.
How Does Carr’s Retirement Impact the Saints’ Cap Situation?
Carr signed a massive four-year, $150 million deal in 2023 that included an initial $60 million. Carr earned another $30 million guaranteed when his 2025 salary became fully guaranteed on the third day of the league year via a restructure.
Carr earned a total of $195 million over his 11 NFL seasons and retired with an additional two years, $90 million remaining on his contract. According to Spotrac, New Orleans will have to account for $80.1 million of dead cap space as a result of the retirement. However, this number can be reduced or entirely erased through an injury settlement or signing bonus repayment.
But where things can get interesting is that Carr’s contract was restructured earlier this offseason by the organization without his direct permission. They didn’t need his approval, as the right to restructure was part of his contract. So they gave him more guaranteed money up front to save cap space.
Now, Carr will decide whether to repay the organization the $30 million he earned through the forced restructure, or keep the money and say, “that’s the business.” Carr’s money came with an injury guarantee, so he’s not obligated to return the money that was given to him in March.
This saga could get interesting, as the two parties were already on shaky terms and seemingly heading towards a split. The Saints will have to figure out the financial implications and quickly refocus on preparing either Shough or Rattler to take over as the full-time starter in 2025.
Keep the money an go home an live youngan