Option Bonuses Are Quietly Reshaping NFL Contracts
Diving into the newly discovered world of multiple option bonuses.
Hey everyone, TC here,
Welcome back to another edition of the Cap & Trade Newsletter. Today’s discussion is Option Bonuses!
We all know what option bonuses are in NFL player contracts; if you don’t, navigate to the Salary Cap 101 Video Series and watch Episode 10. Today, I want to dive into the concept a bit deeper to discuss the whys and how teams deploy option bonuses.
All contract data was sourced from Overthecap.com.
NFL teams have rapidly increased the use of option bonuses in player contracts. The inclusion of these option structures has led NFL teams down a path of increased salary cap control without requiring renegotiation with the player.
TLDR: NFL teams are finding new paths to maximum salary cap flexibility.
Philadelphia, San Francisco, Cleveland, Buffalo, and Baltimore have utilized option bonuses in their contracts for many years.
The way this new option bonus structure has been deployed in 2024 and 2025 has created a new trend.
The previous method of use generally included an option bonus in the 2nd year of the contract. This would act as a pre-negotiated restructure between the parties and typically would provide early cash flow for the player just 12 months after signing the initial agreement. Baltimore relies on this cash flow technique as an enticement for signing players, as does Buffalo.
Today, we are seeing teams utilize multiple team options that span the length of the contract. An additional twist is Dallas using Option Bonuses in the back end of the contract. I'll talk about that later in this newsletter.
So why do this? Why use multiple option bonuses? The main reason is salary cap flexibility.
I touched on this a bit in my Matt Stafford newsletter:
NFL teams have developed this structure to give themselves the ability to maintain that low cap figure for the player, or choose to renounce the bonus, rather than needing to approach the player about a restructure.
Allowing that decision to remain with the team, rather than the player, further increases salary cap flexibility.
For the 2025 league year, 21 of the 32 NFL teams have at least one player contract with a team option bonus. The San Francisco 49ers lead the way with 15 player contracts.
If we look at it from the perspective of how much money teams place in their option bonuses, the Philadelphia Eagles are well above the other teams. Their dollar figure seems almost unreal when compared to the rest of the league.
Changes to Option Due Dates
Along with the inclusion of multiple options in player contracts, the option due dates have also been adjusted. Teams are routinely setting due dates late in the league year, as far back as the day before the first regular-season game. This is done for maximum salary cap flexibility.
Early Activation Schedule - Kerby Joseph (Safety)
The Detroit Lions and Kerby Joseph agreed to a four-year contract extension in April 2025. The contract extension included four (4) options covering the 2026 through 2029 league years. Every option is set with an early activation date in the league year. The first option, in 2026, is due by the 10th day of the league year. For the options in 2027 through 2029, the due date is the 5th day of the league year.
Detroit must decide whether to extend the contract by one year. Despite the early due date, Joseph's cash flow remains unchanged. The option bonus money is paid out over the course of the season in line with the base salary. The option bonus is merely an accounting adjustment for the allocation of the salary cap.
Late Activate Schedule - Nik Bonitto & DaRon Bland
I have two examples of the late activation schedule to discuss. Each contract has interesting details associated with it. Nik Bonitto (LB) with the Denver Broncos and DaRon Bland (CB) with the Dallas Cowboys.
Rich Hurtado with the Denver Broncos really outdid himself with the Bonitto contract. The contract includes seven (7) option bonuses and 52 salary escalator categories. Denver dove into the multiple option bonus structure first with offensive tackle Garrett Bolles. If rumor is true, the Los Angeles Rams took notice of that structure and applied it to Matthew Stafford’s revised two year contract signed in 2025.
Bonitto’s first and second option are due early in 2026, specifically on the 5th day of the 2026 league year. Where things take a turn is options number 3 through number 7. The third option is due by the day prior to the 1st regular season game of the 2027 season. To get even more creative, the team placed two options in 2028 and two options in 2029, all due on the day prior to the 1st regular season game of those league years.
Essentially the team now has the flexibility to determine if the cap space if needed..yes? Activate the option. No?…decline the option and the player cap charge will increase for that league year.
Most often I would expect the team to activate the option and use that cap space as rollover for the following league year.
DaRon Bland has a new (new to Dallas) Option Bonus schedule included in his player contract. Dallas negotiated option two options in the final two years of the contract. This was done specifically for salary cap flexibility.
Dallas employs a restructure contract model. While basic restructures may not require explicit permission of the player, restructures with new void years add will trigger that requirement. The Bland contract has a $19 million option due by the day prior to the 1st regular season game in 2028, and a $21 million option in 2029 with the same schedule.
As with other examples, Bland does not receive a bonus payment up front but rather the option bonus is paid concurrently with base salary payments.
This structure allows Dallas to complete the salary conversion at their convenience, with the pre-negotiated void years, rather than approach the player for the contract adjustment.
I expect to see this occur more often across the league. The anticipated continued rise in the salary cap will provide NFL teams the insurance and confidence to push cap dollars forward into future void years.
Teams Not Using Options
The following teams, currently, do not have player contracts that contain options as signed by their respective general managers: Houston Texans, New England Patriots, Chicago Bears, New Orleans Saints, Tampa Bay Buccaneers, Carolina Panthers, Kansas City Chiefs, Las Vegas Raiders, Indianapolis Colts, Atlanta Falcons, and the New York Giants.
Could we see any of these teams start to utilize Options? I wouldn’t expect it from Tampa Bay, Kansas City, Las Vegas, Indianapolis, or the Atlanta (call me back Chris!). I’ll keep doing what I can to push Houston into this realm.
Thanks for reading!
-TC