If you haven’t heard the big news from the NFL today, then let me be the first one to tell you. Patrick Mahomes has signed a 10 year contract extension meaning he will stay at the club until 2031, and worth over $500 Million over the 10 years. Let me explain the contract, and why this could affect Miami for the years to come.
A Quarterback will demand and get more money, it’s a way of NFL life.
It’s a big moment, take a breath as this is a first in the NFL. I want to give you a quick glance of why this contract could be a cheap deal for the Chiefs. QB’s are the field generals of the team and is easily the most important position on where the ball goes on the pitch, and victories are mainly dedicated to how they play every single week. If you knew you had the next best QB on your team, future Hall of Famer, possibly even a dynasty setting one, is there really any limit to what you would spend to have him? What would you do, if you let him slip and he did all of that? Thanks Coach Saban…
CONTRACT CONSEQUENCES, CASUALTIES & CORRECTIONS
Kansas City Chiefs has its franchise quarterback. #15 Patrick Mahomes in a 10 Year, $400 Million deal which is the first of it’s kind in length. I can hear you say that it is a lot for just one guy, how will the team who is struggling on a salary cap space actually afford to pay this guy? There are multiple ways, but the most obvious is ones which could benefit the dolphins are big players being cut or traded to avoid being paid big contracts, or to even go into contract negotiations all together. Could Miami have a chance at Tyreek Hill?
The other way is by setting up a clever, team friendly contract. How could $400 Million over 10 years be called “Team Friendly”? Through a couple ways. First things first, NO EVER PLAYER EARNS ALL THE MONEY IN THEIR CONTRACT. Could you say that Mahomes isn’t worth $40 Million a year for 10 years? Arguably, he is worth a lot more than that for what he brings to Kansas.
Teams can FRONT LOAD contracts, meaning a big chunk of their salary is done in the first few years, and then the rest paid later, look at Byron Jones’ contract as a good example of this. Teams choose to do this when they believe in their current roster and projects, mainly based on rookies, season veteran players and/or sustainable contracted players.
Incentives are another way to lighten the load of contracts, such as appearances, rushing yards per season, Touchdowns, Pro Bowl selections, Super Bowl victories, records and other methods. A large portion of the money can be a signing bonus to give to the player when signed, lightening more of the contract, but unlikely that the signing bonus would make a significant dent in Mahomes’ contract. Finally, the new collective bargaining agreement (you may have heard of the “New CBA”) and new TV rights deals to show games are fully expected to see the salary cap go up, and one which Kansas are bargaining on to happen.
So now you know the bare basics of contract, you could see how this deal could turn into quite a favourable one for Kansas, even though it just takes one injury to ruin a season and maybe even a career in the NFL. Let’s turn to the future in Miami…
What does this mean for the future?
23rd April 2020, NFL draft, Round 1, Pick 5. The eagerly awaited pick of Miami Dolphins, and then selection of Alabama QB Tua Tagovailoa. Yes this contract of Mahomes will change contracts of the future, especially of Tua if he plays to the extent of his expected performance in the NFL, and could even deliver playoffs, championship games or even Superbowl in his rookie deal.
The way Mahomes’ contract could change things, is how much money players could demand and for how long. If $400 Million is the going rate now, what will it be when it comes to extending Tua’s contract? $550 Million over 10 years? Higher and even longer? There is a worry about planning the team with such a demanding contract, but you’ve seen how teams can make it work, and we have experienced it first hand last year and will do this year, rookies, developmental talent and cheap deals. Miami has the base for this right now.
Teams will have strategies well in advance for these future contract situations with some more serious than others, but none more serious than their franchise quarterback, how the team really does though, comes to the coaching staff and talent scouts.