Contract Extensions Everywhere!
And there are some hold-outs and hold-ins!
“You get a contract! You get a contract!” It is high time for contract extensions as teams and players work to secure long-term commitments before the regular season starts. At the same time, other players are working their leverage with hold-ins and hold-outs. Let’s take a look at what has occurred in the past week.
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The known busy times for contract extension execution occur in the days leading up to free agency in early March, and (now) after training camp begins leading up to the start of the regular season.
This week on Cap & Trade I wanted to review what has happened across the league both with new contracts, and the players who are looking for new contracts.
Contract Extensions Completed
Quinn Meinerz OG - Denver Broncos
Meinerz started the period with a four-year $72 million extension with the Denver Broncos. This one was a bit unexpected due to the recent explosion in the offensive guard market. Denver could have probably waited to let Meinerz prove himself however Denver wanted to lock in the contract. The $18.0 million APY ranks Meinerz as the 6th highest-paid offensive guard.
Meinerz, loved by Profootball Focus, has continually improved year over year after three seasons in the league. The third-round draft pick out of Wisconsin-Whitewater finished the 2023 season as the 4th highest-graded offensive lineman. Denver rewarded Meinerz handsomely.
Kenny Clark DL - Green Bay Packers
The 29 year old, and uber productive, Kenny Clark agreed to a three year contract extension worth $64.0 million leaving Clark under contract through the 2027 NFL season. Clark’s $21.3 million APY places him as the 12th highest paid interiod defensive lineman.
Clark was due $17.0 million in cash in 2024 under his previous contract, instead now will earn a raise to $29.0 million for the season including a fresh $17.5 million signing bonus.
The contract also marked a return of the old fashioned Green Bay structure. The team has worked hard the past two seasons to get their salary cap situation back under control using option years and maximum restructures. This classic Green Bay structure is a clear indication the team has things back under control.
Rashid Shaheed WR - New Orleans Saints
I wanted to cover the Shaheed contract extension due to the circumstances related to free agency status. Shaheed signed a two-year $6.185 million contract replacing his existing one-year exclusive rights free agent tender. This type of signing is not uncommon for the New Orleans Saints.
Shaheed, originally, was set to play the 2024 season under the $985,000 exclusive rights free agent (ERFA) tender. The ERFA is a non-guaranteed tender for players with two or fewer accrued seasons towards free agency. This is a result of Shaheed coming into the league as an undrafted college free agent in 2022.
Shaheed will now earn $1.985 million for the 2024 season including a $1.0 million signing bonus as part of the new contract. In 2025 there is a non-guaranteed $4.2 million salary. If Shaheed had not signed this contract and played under the ERFA tender then he would have been a scheduled restricted free agent (RFA) in 2025. New Orleans likely, if Shaheed performs well in 2024, would be in line to use a second-round RFA tender worth $4.978 million in 2025.
In short, the two sides agreed on a two-year contract that outpays the ERFA/RFA tender combination by $222,000 and provides Shaheed a small guaranteed payout in 2024. The team incurs a small $250,000 increase on Shaheed’s salary cap charge, but in return receives a favorable structure that includes two void years for salary cap purposes. Typical Khai Harley magic.
Tyson Campbell CB - Jacksonville Jaguars
Jacksonville signing the 4th year cornerback to a big contract extension was a big bet by the organization. The cornerback market has been depressed for two years, and I interpret this deal as a way for the team to get out in front of a market reset coming from Patrick Surtain from an APY viewpoint.
The takeaway from this contract is Campbell’s agent did very well! The contract has a double option bonus providing Campbell with favorable cash flow. The 3-year APY of $20.0 million is above the total new money APY of $19.25 million meaning Campbell is getting paid quickly. Additionally, the contract secured a rolling year early vesting structure into the third new money year. Solid work all around by Campbell’s agents despite Campbell’s injury record from 2023.
Christian Darrisaw OT - Minnesota Vikings
Drafting an offensive tackle in the 1st round, and having said player perform meeting expectations and then some…a top of the market contract will follow after three year. Christian Darrisaw is no exception.
Darrisaw was a solid offensive tackle his rookie year in 2021, after being selected 23rd overall in that year’s draft. Year two and year three is when Darrisaw really turned up the performance ranking as a Top 5 pass blocking tackle per PFF grading.
Minnesota deployed a single option bonus structure with rolling vesting guarantees into the fourth new year of the contract. The base APY of $26.0 million will slot second among offensive tackles behind Penei Sewell.
Matthew Stafford QB - Los Angeles Rams
Details are not available yet. Presumeably the team shifted some new money forward in 2024. Stafford was due $31 million in 2024, $32 million in 2025, and $31 million in 2026.
I would expect the team to increase Stafford’s cash outlay for 2024, and provide additional guarantees in 2025 leaving the 2026 contract year as the team’s potential out from the contract.
Tua Tagovailoa QB - Miami Dolphins
Just today Miami and Tua Tagovailoa agreed to a 4 year contract extension worth $212.4 million. Tua was heading into the fifth year option on his rookie contract while completing a “hold-in” while the final contract details were ironed out. Specific contract details are not available at this time.
The new money APY slots in at $53.1 million moving Tagovailoa into the third spot amongst all quarterbacks just ahead of Jared Goff. Reportedly the final APY number was a sticking point for Tagovailoa’s camp. The team ultimately added some money to push the APY over Goff. I will be quickly looking at the 3 year APY as a percentage of the total APY to determine if the contract has back end fluff or not.
Players Holding Out/In
The following players are in the middle contract discussions and are using their individual leverage with a hold-in and pure hold-out. Just a reminder that training camp fines are able to be rescinded for players on rookie contracts. For veterans the fines are mandatory.
The Dallas Cowboys have the biggest challenge with Dak Prescott, Ceedee Lamb, and Micah Parsons. Based on reports Ceedee Lamb is the lone player working the holdout method.
Dak Prescott QB has an unprecedented amount of leverage in his specific situation. Prescott’s current contract runs through the 2024 season, making him an unrestricted free agent in 2025. The contract also has a no-trade clause and no-franchise tag clause. Dallas would have to meet Prescott’s demands this year, if not then Prescott has a clear path to free agency where a $60 million APY likely awaits for him.
Ceedee Lamb WR is, presumably, looking to top the Justin Jefferson deal at $35 million APY. The Jefferson deal is very clean with a pure $35 million APY with no back end fluff.
Micah Parsons DE is easily one of the best defensive players in the league. Topping Nick Bosa’s $34 million APY is easily the floor. I expect Parson’s contract to top the $35 million APY mark.
No arguments from my side that Dallas has some difficult choices in front of them. For a team that routinely finishes in the middle of the pack in terms of cash spending despite being the highest valued organization in the NFL.
Ja’Marr Chase WR is looking for a new contract with Cincinnati, and frankly I’d be surprised if it happens this offseason. Chase is currently under contract through the 2025 season with his fifth year player option. If there is any team resislent to player demands, it is Mike Brown and Duke Tobin who manage the front office in Cincinnati. File this as a discussion to get more heat in the 2025 summer.
Haasan Reddick DE has dug his heals in with the New York Jets. Back on April 1st Philadelphia traded with the New York Jets sending a conditional 3rd round in exchange for veteran edge rusher Haasan Reddick.
Reddick is due just a non-guaranteed $14.5 million in the final year of his contract. Rumor has it Reddick’s camp has his eyes on the two year nearly fully guaranteed contract Danielle Hunter signed with the Houston Texans. That contract has a base value of $49 million over two years with $48 million fully guaranteed at signing.
Reddick does not have the same open market leverage that Hunter had access to, but the trade does provide Reddick ample leverage. New York should have worked out a new contract extension prior to completing the trade with Philadelphia.
Jordan Love QB is content to see the Tua Tagovailoa deal get completed. Pretty simple here. Love will come in around the $220.0 million mark over 4 years placing him at the top with Joe Burrow and Trevor Lawrence at $55.0 million APY. The sticking point between Love and Green Bay is the guarantee structure. Old school Green Bay contract structure, generally, does not provide guarantees beyond signing bonus. The organization steered away from that structure with Aaron Rodgers in the past, the likely argument points being made by Love’s camp. The deal should be tied up over the coming days.
*edit* and I was putting on the finishing touches the 4 year $220.0 million contract is leaked!
The San Francisco 49ers are in the media once again over contract demands. Last year the situation was with Deebo Samuel and Nick Bosa. This year the conflict sits with Brandon Aiyuk WR and veteran Trent Williams OT.
The offensive passing game goes through Brandon Aiyuk in San Francisco. The team having paid Deebo Samuel and drafting Ricky Pearsall creates a difficult situation. The organization would be seeking a 1st round draft plus more to move Aiyuk, and the receiving team would have to sign him to a near top of the market contract in excess of $33.0 million APY. I do not have a good read on this situation and what the end game is at this point in time.
Trent Williams is a savy veteran who has no qualms with training camp fines and missing games. His last hold out extended to Week 8 before Washington and San Francisco worked out a trade.
Williams is under contract through the 2026 season at an APY of $25.77 million however with zero guaranteed money. This contract situation is likely a blend of market value and guarantees. Williams has been and continues to be a dominant offensive tackle. Watching the market reset at $28.0 million coupled with zero guarantees is likely the trigger point for Williams.
San Francisco will need to dip into the $33 million slated for 2026 and shift some of that money forward into 2024 to provide Williams a raise…AND…lock in guarantees through the 2025 season. This should be sufficient to get Williams back to the negotiating table and on the practice field.
Closing
Whew that was a lot. The world of NFL contracts is a buzzing with more big deals on the horizon.
-TC