John Lynch explains move that frees up 49ers cap space in 2026 after Bosa's injury

Earlier this week, ESPN's Kalyn Kahler revealed that the San Francisco 49ers will actually gain significant salary cap relief in 2026 following defensive end Nick Bosa's season-ending ACL injury. The savings come from an insurance policy the team purchased as part of Bosa's five-year, $170 million contract extension signed in 2023.

"The 49ers will get almost $7 million in salary cap relief in 2026 because of their insurance policy for a season-ending injury, a source told ESPN's Kalyn Kahler," ESPN's Nick Wagoner wrote.

General manager John Lynch discussed the matter on Thursday morning on Bay Area radio station KNBR, stressing that the team would have much preferred not to activate the policy.

"First of all, it's not like a badge of honor," Lynch stated. "I think we'd much rather have Nick Bosa, but it's a mechanism that the league allows you to purchase insurance, and it can soften the blow from a financial standpoint and get some salary cap credits back. That's the crux of it. You get some cap credits and things, but we'd much rather have Nick Bosa, I can tell you that.

"But it's a mechanism that the league allows, and so, our guys, [assistant GM] Brian Hampton, [EVP of football operations] Paraag [Marathe], and them, they purchase it as part of our contracts with various players. Like I said, it can soften the blow, but believe me, we'd much rather have the alternative."

According to The Athletic's Matt Barrows, the 49ers' total cap savings from the policy could ultimately approach $9 million. However, those financial benefits come at the steep cost of losing a team leader and one of the foundational cornerstones of San Francisco's defense.