A transaction where a team signs one of its own free agents to a new contract and then immediately trades them to another team, allowing the original team to receive compensation rather than losing the player for nothing.
A sign-and-trade occurs when a player's current team re-signs them to a new contract with the explicit intention of immediately trading them to another team. This arrangement benefits all parties: the player gets a new deal (potentially structured more favorably than what the acquiring team could offer directly), the original team receives trade compensation instead of losing the player in free agency for nothing (or waiting for a compensatory pick), and the acquiring team gets the player they want.
Sign-and-trades are less common in the NFL than in the NBA because NFL free agency operates differently. However, they do occur, particularly when a team knows a player wants to leave and prefers to extract value rather than let them walk. The original team handles the contract signing, then trades the player with the new deal already in place.
The cap implications of a sign-and-trade are similar to any other trade. The acquiring team takes on the new contract's cap hit, while the original team avoids any long-term cap commitment. If a signing bonus is included, it typically stays with the acquiring team since the trade is executed essentially simultaneously with the signing.
In 2022, the Packers executed a sign-and-trade with the Raiders involving wide receiver Davante Adams. Green Bay re-signed Adams and immediately traded him to Las Vegas, receiving first- and second-round picks instead of losing him outright in free agency.
Category: Trades & Transactions. Part of the StickToTheModel NFL Encyclopedia.