The Green Bay Packers continue to have Jaire Alexander on their team, with his presence impacting the salary cap by $24.994 million. The organization is contemplating either trading or releasing him, which would free up $6.876 million in cap space. However, even before any decisions on Alexander’s future, the Packers managed to generate some cap room through a maneuver involving him.

According to independent cap expert Ken Ingalls, the Packers obtained insurance payouts for the 10 games Alexander missed in 2024 due to injury. As a result, Green Bay will receive a credit of $1,074,702 on their 2025 salary cap—previously, Alexander’s cap hit was $23.494 million. This amount, though seemingly minor, represents approximately 30% of what the Packers need to sign their entire rookie class.

NFL teams can utilize insurance policies for injured players, providing a cap loophole. The premiums for these policies do not count against the cap, but when the team receives the payout, it is credited towards cap spending. While the payout isn’t the full amount based on Alexander’s missed games, it is a portion determined by the policy’s structure.

The Packers will receive $1,074,702 in cash, which is also accounted for cap purposes. Alexander remains under contract for two additional seasons, but his tenure with the team is likely limited. General Manager Brian Gutekunst is focused on trading him for some form of compensation, opting to wait since there’s no contractual deadline.

If Alexander is traded or released after June 1st, or let go now with a post-June 1st designation, the 2025 cap savings would increase to $17.117 million, although $10.241 million in dead money would still be present for the following year. Nevertheless, the Packers would save $17.135 million against the cap in 2026 and $2.364 million in 2027 (void year).

Before the insurance policy proceeds, the Packers had $31.333 million in available cap space, ample to sign the entire rookie class and operate through the season. They will likely want to carry over some of this to 2026, as the future cap situation is less clear. Recovering some funds after Alexander’s significant absence last year helps alleviate the issue somewhat.