According to Adam Schefter, WR Santonio Holmes has agreed to restructure his contract. The terms of the restructure are not out yet, but it is very likely he has reduced his contract from $11.25m to $7.5m, which is his guaranteed amount. This will save the New York Jets $3.25m in salary cap space, which, added to the earlier release of NT Sione Pouha, now gives the team an additional $7.05m in cap space to work with.
Holmes likely agreed to the restructure at the threat of being released. His money was guaranteed and had an offset in the contract that wouldn't allow him to double dip. Essentially, $7.5 was the most he would have been able to receive. His recent production and Lisfranc injury simply made $11.25m too high a cost to pay.
This is fantastic news, as it gives the Jets more space to sign free agents as the free agency period is set to open at 4:00pm EST. The team now has, by my estimation, approximately $15.15 million in available space.