Godfrey was set to make close to $5M this season but no one expected him to keep that intact given his Achilles injury. Once the Panthers signed a couple free agents the writing was on the wall:
Charles Godfrey takes a big pay cut to stay with Panthers | ProFootballTalk
According to Field Yates of ESPN.com, Godfrey has taken a massive pay cut, dropping his base salary from $5 million to $750,000. He can still make $1.7 million of it back in per-game bonuses. The deal was a no-brainer on several levels, primarily because Godfrey has no leverage after tearing his Achilles last year and then watching the team bring in Thomas DeCoud and Roman Harper. Like running backs DeAngelo Williams and Jonathan Stewart, Godfrey chose to stay for less, and his decision created around $4 million worth of cap space for the Panthers, which they needed.
I'm glad he decided to stay though I assume the Panthers were still offering more money than anyone else would. Gantt makes a good point later in the article about Godfrey possibly playing CB instead. It all depends on his health of course but I think he has the skill to contribute in some capacity.
So there's an added $4m to the salary cap that will certainly come in handy.