Based on these reported numbers from PFT, Burrow's 2023 Cap Hit will increase by $8M from his rookie deal (the $40M 2023 fully GRTD roster bonus is treated as a signing bonus for proration purposes).

2023 Cap Hit (pre-extension) = $11.515M

2023 Cap Hit = $19.515M https://t.co/Dh6PHPxhmC

— Andre Perrotta (@andreperrotta13) September 11, 2023

(09-11-2023, 01:28 PM)Joelist Wrote: Very interesting deal. The creative use of option bonuses means the cap hit for any given year is less than the actual monies paid. For example 2024 is base salary 10.714 plus 55 million option bonus. The option bonuses spread the cost out after all. I think this means Burrow gets paid 65 million in 2024 but the cap hit is 29 million?

Based on the numbers reported by PFT, here are Joe Burrow's Cap Hits for every season he is under contract (i.e. 2023 through the 2029 season)

2023: $19.515M
2024: $29.714M
2025: $46.25M
2026: $56.25M
2027: $58.25M
2028: $53.5M
2029: $52.539M https://t.co/Dh6PHPxhmC

— Andre Perrotta (@andreperrotta13) September 11, 2023

NEW: A deep dive into Joe Burrow's 5 year, $275M extension with the #Bengals that includes $146.5M fully guaranteed at signing, 6 prorating bonuses, & a whopping $111M through 2024.https://t.co/f5soFmWOM1

— Spotrac (@spotrac) September 11, 2023

Quote:THE AVERAGE ANNUAL VALUE

Burrow didn’t just surpass Justin Herbert’s $52.5M per year - he blew by it. His $55M per year represents 24.4% of the current NFL Salary Cap ($224.8M), the highest percentage of cap in NFL history.

Three years ago, Patrick Mahomes’ $45M per year was the top number. Mahomes now ranks 8th on that list, with 4 players north of $50M per year (and that includes Aaron Rodgers taking himself OUT of that group).
THE GUARANTEE STRUCTURE
It’s another wow here. Lamar Jackson’s $135M was the previous high guarantee at signing figure (Deshaun Watson excluded). But Burrow’s $146.51M soars to the top with this new deal, including 3 years of fully guaranteed compensation through 2025.

That said, it wouldn’t be fair to ignore that Burrow already had $35M fully guaranteed allocated on his rookie contract, so accounting for that lowers this new guarantee at signing figure to $111.4M - still $11.4M more than Justin Herbert secured ($100M), and plenty more than Jackson’s adjusted number when accounting for the offered franchise tag ($102.6M).

On the 5th league day of 2025, another $35.25M becomes fully guaranteed (his 2026 compensation). All of that is guaranteed for injury at the time of signing.

On the 5th league day of 2026, another $18.3M becomes fully guaranteed (a portion of his 2027 compensation). The remaining $18.95M fully guarantees in March of 2027.


That brings us to a practical guarantee total of $219.01M, through the 2027 season, 2nd only to Deshaun Watson’s $230M.

THE CASH FLOW
Burrow scores a $40M pay raise this year, north of $45.5M for the 2023 season, but he’ll secure a whopping $65.7M in 2024, bringing his 2-year total over $111M. Only Lamar Jackson’s $112.5M pays out more in that regard. A $35.25M payday for 2025 brings the 3-year total over $146.5M, again second only to Jackson’s outstanding $156M payout.

Why so much more for Lamar? A) He was technically a free agent versus an under contract extension. B) Joe Burrow’s extension comes with an inexpensive 4th rookie contract year ($5M) and a 5th year option value ($29M) under it. Cincinnati could have slow-played this cash flow like a baseball extension - but they didn’t. Burrow secures the best cash flow in rookie contract extension history.

Annual Cash Allocations
2023: $45.5M
2024: $65.7M
2025: $35.25M
2026: $35.25M
2027: $37.25M
2028: $40.5M
2029: $50.5M


THE CAP FLOW

The Bengals utilized a SIX BONUS structure with this extension: A $40M signing bonus, a $55M 2nd year option bonus, 3 consecutive $10M option bonus, and a final $5M option bonus in the 2028 season.

For the most part, this keeps the upfront cap hits relatively tenable, with a slight need for salary conversion coming in 2025/2026, and an excessive figure in the final season.

Annual Cap Allocations
2023: $19.5M
2024: $29.7M
2025: $46.25M
2026: $48.25M
2027: $52.25M
2028: $53.5M
2029: $68.5M
2030: $9M (dead)


CONCLUDING THOUGHTS

Many, ourselves included, wondered if Joe Burrow would take the Peyton Manning approach (max out) or the Tom Brady approach with this rookie extension. Quite obviously he chose the former here.

The Bengals haven’t put together a contract like this in the history of their franchise, historically not fully guaranteeing any future salary - often not even for injury purposes. They haven’t been “cheap” in terms of overall payouts, but they’ve been frugal when it comes to the stability of their contracts.

There’s not a soul who can claim that about this Joe Burrow extension. It’s rock solid through 2027, with a bit of an out prior to the 2028 season, and a definitive one before 2029. Cincinnati will be sticking more than $100M into escrow with this deal (fully guaranteed cash not paid out in 2023), proving they’re on board for whatever it takes to keep this elite QB1 in town for as long as possible.

This is just step one in their core payment process however, as Ja’Marr Chase becomes extension eligible in just a few short months, and should have a bright shiny Justin Jefferson contract to mirror by then.

(09-12-2023, 08:11 PM)Isaac Curtis: The Real #85 Wrote: FWIW, Burrow's cap hit was gonna be $29 mil next year BEFORE he signed this contract, IIRC. That was his 5th year option hit.

So, while I would not call it team friendly in any way, 2024 is the friendliest year.

(09-12-2023, 09:30 PM)ah5 Wrote: Nothing about this deal is team friendly...

(09-13-2023, 12:54 AM)OUatown Wrote: Love Joe, but man is it worth it? This post has nothing to do with last game.

(09-11-2023, 12:31 PM)pally Wrote: https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/inside-the-joe-burrow-deal

Joe Burrow is now the highest-paid player in NFL history. At least until the next highest-paid player inevitably comes along.

For now, he has a contract that not many will surpass before he signs an extension.

We’ve gotten a look at the full details of the Burrow deal. Here they are, per a source with knowledge of the terms:

1. 2023 roster bonus: $40 million, fully guaranteed.

2. 2023 training camp roster bonus: $4.535 million, fully guaranteed.

3. 2023 base salary: $1.01 million, fully guaranteed.

4. 2024 option bonus: $55 million, fully guaranteed.

5. 2024 base salary: $10.714 million, fully guaranteed.

6. 2025 option bonus, $10 million, fully guaranteed.

7. 2025 base salary: $25.25 million, fully guaranteed.

8. 2026 option bonus: $10 million, guaranteed for injury at signing, fully guaranteed on the fifth day of the 2025 league year.

9. 2026 base salary: $25.25 million, guaranteed for injury at signing, fully guaranteed on the fifth day of the 2025 league year.

10. 2027 option bonus: $10 million, guaranteed for injury at signing (see item 11 for more).

11. 2027 base salary: $27.25 million, guaranteed for injury at signing; $18.3 million becomes fully guaranteed on the fifth day of the 2026 league year and the full 2027 compensation (including option bonus) becomes fully guaranteed on the fifth day of the 2027 league year.

12. 2028 option bonus: $5 million.

13. 2028 base salary: $35.5 million.

14. 2029 March roster bonus: $2.5 million.

15. 2029 base salary: $48.039 million.

16. 2025-29 incentives: $500,000 for winning the AFC Championship, and another $1.25 million for winning the Super Bowl.

The deal pays out $310 million over seven years, with $219 million in injury guarantees covering five years. (The Bengals previously refused to guarantee contracts for injury more than a year in advance.)

Most significantly, Burrow has three years fully guaranteed at signing, for a total of $146.51 million.

It’s a massive deal that compares very favorably on all metrics to all prior quarterback deals. We’ll have more details regarding the comparisons in a later post or two.

(09-13-2023, 12:54 AM)OUatown Wrote: Love Joe, but man is it worth it? This post has nothing to do with last game.

(09-13-2023, 10:24 AM)Marlon23 Wrote: The more these players get paid the more the common man will start to realize that the NFL is leaving them behind and the game will start to lose substance.  Happening already I believe.  The Bubble will burst soon enough. 

(09-13-2023, 03:39 PM)Au165 Wrote: No it won't, this narrative has been around a long time all the way back to the first $10 million dollar contract. NFL ratings have never been higher, the TV contracts have never been bigger. People said NIL would kill college football and just the opposite is happening viewership there is killing it. Soccer has long surpassed NFL contracts for it's stars and it is still the most popular sport in the world, even in countries where the common man makes pennies a day to what people here make. 

NFL Players haven't been "the common man" for 40+ years and honestly they aren't. These guys are literally better at their job, even the worst ones, than any of us are at ours. You are talking about the top .001% of all people in the world can do what they do. 

(09-13-2023, 05:26 PM)Marlon23 Wrote: I understand what you are stating but eventually where is it going?  275 Million for one player and in the next 5 years? Half a billion?  this does seem to be problematic, I thought it was a problem with Rodgers contract (way to much money) and he is one of the greatest of all time.  I think eventually it will start to erode the simplicity of the game, and the market will become saturated and the fan base will start to realize that paying 400 dollars to watch games, and the cost of supporting a team in the end is just not worth it.  I think it is starting to show a bit more in the past few years. Especially with the big execs changing viewing options for viewers.  All it takes is for a few boring/seasons and the value will decrease quickly in my view. 

(09-13-2023, 05:26 PM)Marlon23 Wrote: I understand what you are stating but eventually where is it going?  275 Million for one player and in the next 5 years? Half a billion?  this does seem to be problematic, I thought it was a problem with Rodgers contract (way to much money) and he is one of the greatest of all time.  I think eventually it will start to erode the simplicity of the game, and the market will become saturated and the fan base will start to realize that paying 400 dollars to watch games, and the cost of supporting a team in the end is just not worth it.  I think it is starting to show a bit more in the past few years. Especially with the big execs changing viewing options for viewers.  All it takes is for a few boring/seasons and the value will decrease quickly in my view. 

(09-13-2023, 05:28 PM)ochocincos Wrote: People shouldn't feel forced to spend money they don't want to spend.
If you don't want to spend the amount of money to attend in-person, don't. Just watch on TV somewhere.
NFL (as with all professional sports) are trying to make as much money as people will keep paying, so they'll keep raising prices until people stop being willing to pay that price.

(09-13-2023, 05:26 PM)Marlon23 Wrote: I understand what you are stating but eventually where is it going?  275 Million for one player and in the next 5 years? Half a billion?  this does seem to be problematic, I thought it was a problem with Rodgers contract (way to much money) and he is one of the greatest of all time.  I think eventually it will start to erode the simplicity of the game, and the market will become saturated and the fan base will start to realize that paying 400 dollars to watch games, and the cost of supporting a team in the end is just not worth it.  I think it is starting to show a bit more in the past few years. Especially with the big execs changing viewing options for viewers.  All it takes is for a few boring/seasons and the value will decrease quickly in my view.