Moss was entering the final season of a three-year deal and would have counted for $6.1 million against the salary cap. But by restructuring his deal, Washington has saved $2 million.
The Redskins entered last week roughly $3 million over the salary cap and then re-signed five players with expiring deals and tendered another.
The team on Monday released cornerback DeAngelo Hall of then reworked the contracts of defensive end Adam Carriker to get around $1 million under the league’s spending limit of $123 million.
Washington is now roughly $3 million under the cap. Redskins Coach Mike Shanahan said on Monday that a number of players could have their deals reworked as the team tries to free up money to sign free agents.
The Redskins still need to create more financial flexibility because linebacker/special teams captain Lorenzo Alexander remains unsigned, and the team also has interest in re-signing tight end Fred Davis. Washington also needs roughly $4 million in cap space to sign rookies later this offseason.
Moss does not receive an extension as part of the restructuring, a person with knowledge of the situation said. Instead, he agreed to a base pay cut of $2 million, but has the opportunity to earn that money back with incentives.
Moss, a 12-year veteran, last season led the Redskins with eight touchdown receptions.