San Francisco 49ers set to gain $18 million on salary cap after June 1st

May 28, 2024, 11:26 AM

San Francisco 49ers running back Christian McCaffrey (23) takes part in a drill during the team's O...

(Photo by Brandon Sloter/Icon Sportswire via Getty Images)

San Francisco 49ers Beat Writer

The 49ers have been on the doorstep of Super Bowl glory for years now, looking forward to another run in 2024. That potential run will be aided by a little salary cap relief, starting next month.

The San Francisco 49ers are set to relinquish $18 million off their 2024 salary cap after June 1st. The additional funds become available to the 49ers once the release of defensive lineman Arik Armstead is official complete. SF released the long-time 49er during free agency in March, setting his release for a post-June 1st designation.

Because of that, the 49ers will be able to complete additional moves, this summer, that could impact the future of the organization entirely.

One of those decisions includes wide receiver Brandon Aiyuk, reportedly looking for a massive contract extension in the range of $30 million. The Rocklin native has held out of the 49ers’ offseason program thus far, looking to preserve his value into his contract year. The wideout has posted cryptic messages on social media however, including one more Tuesday.

#49ers WR Brandon Aiyuk’s latest IG story… pic.twitter.com/wsTNUCQww5

— OurSF49ers (@OurSf49ers) May 28, 2024

Additionally concerns for the 49ers include the future of stars Christian McCaffrey, George Kittle and Charvarius Ward, to name a few. All three men have two or less years remaining on their respective deals, with decisions regarding all three coming in due time.

The 49ers currently have $5 million in cap space, according to Spotrac. Other websites and outlets have slightly different numbers, with OverTheCap at $6 million, and The Athletic’s David Lombardi at over $14 million. An excess of $22 million could be expected after the Armstead cap relief kicks in.

Original Story from March 28, 2024

What is the Importance of Post-June 1st in the NFL?

June 1st serves as an important day on the NFL league calendar as it is the final day before different salary cap implications come into effect for teams.

If a player is released or traded prior to June 1st, all of his future guarantees and remaining signing bonus will be accelerated into the team’s cap space for that season. If the team designates the player for post-June 1st, then the remaining money gets split into two league years.

NFL teams will do this to offset costs of high cap hits in order to create more financial flexibility.

For more explanation, click here.

How does the NFL Post-June 1st Designation Work?

A good example of a Post-June 1st designation is the Arik Armstead situation.

DE Arik Armstead’s Post June 1st Designation release means the #49ers will carry his $28.3M cap hit until 6/1, then take on dead hits of:

2024: $10.3M ($18M saved)
2025: $15.5M

Armstead is free to sign elsewhere immediately.

— Spotrac (@spotrac) March 13, 2024

The former 49ers defensive tackle was on the books for a $28.3 million cap hit in 2024, third highest on the roster. After contract restructure talks broke down, SF cut him on a Post-June 1st designation. Because of that, Armstead’s immediate release created $2 million in available cap space in the moment, and $16 million that can be used after June 1st this offseason.

The 49ers will still hold onto $10.3 million in dead money in 2024, but will divide his remaining guaranteed money over into 2025. For Armstead, that’s $15.5 million of dead cap the 49ers will hold onto next league year.

While those numbers might seem daunting, for an organization in win-now mode like the 49ers, it gives them more flexibility in the present moment to make additional moves. SF used the additional space to add talent on both the offense and defense this month, and will get additional room after June 1st to take moves.