The Chargers made one of the most exciting coaching hires of the 2024 NFL offseason by bringing Jim Harbaugh to Los Angeles.
They followed that up by making one of the more surprising cuts ahead of free agency. The Chargers released veteran receiver Mike Williams just hours before the new league year began Wednesday.
Williams spent the first seven seasons with the Chargers after being the No. 7 overall pick in the 2017 NFL Draft. He was productive for the team when on the field, but he had issues staying healthy and rarely played a full season.
The Chargers releasing Williams still caught some off-guard because of his combination of size (6-4) and downfield, contested-catch abilities. Williams will likely have several suitors as he hits free agency.
Here's what to know about the Chargers' salary cap situation and how that impacted the team's decision about Williams' future.
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Why did the Chargers release Mike Williams?
The Chargers released Mike Williams out of necessity. The Chargers entered Wednesday projected to be $27.8 million over the salary cap for 2024, per OverTheCap.com, and Los Angeles had to comply with the NFL's $255.4 million budget by 4 p.m. ET, the official start of the 2024 league year.
Williams was set to have a $32 million salary cap hit in 2024. Releasing him saved the Chargers $20 million in cap space and made them cap compliant, per ESPN's Adam Schefter.
That made releasing Williams an easy decision, albeit one that the Chargers didn't want to make. They are interested in eventually re-signing him, but Williams is expected to test the free agent market, per NFL Network's Ian Rapoport.
If the Chargers can't bring Williams back, they will rely on Keenan Allen, Joshua Palmer, and Quentin Johnston as their top three wide receivers.
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Why didn't the Chargers trade Mike Williams?
Some were surprised that the Chargers weren't able to trade Williams. The veteran has averaged 65 catches for 1,027 yards and seven touchdowns per 17 games played since 2018, so why wouldn't a team take a chance on the 6-4 downfield threat?
The answer is simple. The Chargers had no leverage in trade talks because teams knew they needed to clear cap space. As a result, teams likely weren't willing to pony up significant enough draft assets to pry Williams away from Los Angeles.
It's also notable that the Chargers are hopeful they can bring Williams back. Perhaps releasing him is a calculated gamble that they will do so on a cheaper deal than the one Williams was originally on for the 2024 NFL season.
Either way, the Chargers decided not to pull the trigger. Now, the only thing they are getting for Williams is cap relief.
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Khalil Mack contract restructure
As mentioned, releasing Williams is expected to make the Chargers cap-compliant, but it wasn't the only move that got them to that point. Khalil Mack also played a part in the team's efforts to get under the cap.
Mack agreed on a restructured contract to create cap space for the Chargers, per ESPN's Adam Schefter. Terms of Mack's agreement were not immediately disclosed, but given that the Chargers were $27.8 million over the cap, his move created at least $7.8 million in cap space.
Mack was originally set to have a $38.5 million cap hit in the final year of the six-year, $141 million contract he signed with the Bears in 2018. That number would have been wholly unpalatable for the Chargers, and it's part of the reason that Mack's name ended up in the rumor mill surrounding Los Angeles' potential cap casualties.
Ultimately, Mack decided to stay with the Chargers after recording a career-high 17 sacks in 2023. Los Angeles will certainly thank him for helping them to become cap compliant without hemorrhaging too much of the team's high-end talent on either side of the ball.
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Chargers salary cap
The Chargers entered Wednesday projected to be $27.8 million over the salary cap for 2024, per OverTheCap.com. They are now compliant with the NFL's $255.4 million budget ahead of the 4 p.m. ET start of the league year.
It isn't currently known how much cap space the Chargers have. That will depend on the terms of Mack's restructure, which haven't yet been reported.
In all likelihood, a portion of Mack's 2024 salary will be converted to a signing bonus and prorated over the length of Mack's contract. Currently, Mack has just one year left on his deal, so the team either extended the 33-year-old or, more likely, added some void years to his contract.
Void years are a common accounting method used by NFL teams to push salary cap hits into future years. The player isn't under contract during those campaigns — the deal is voided by that point, hence the name — but teams still allocate salary cap space to them stemming from prorated signing bonuses.
Either way, Mack's deal is the key to knowing exactly how much cap space the Chargers have as the 2024 NFL offseason continues.
For now, though, all we need to know is that they are on track to be cap compliant while releasing just one of their top high-end cap hits.
