Joe Burrow Contract Extension

Just before the season opener, Joe Burrow casually signed the largest contract in NFL history. This deal was in the works for a while, and the two sides finally came to an agreement. Burrow stated multiple times that he wanted a deal that worked for both sides, so I was a little surprised when I saw the total value, but nonetheless, Burrow is worth every penny. 

Terms of the Deal

Burrow signed a five-year, $275 million extension to keep him under contract through the 2029 season. He still has two years remaining on his rookie deal, so the total contract length is now seven years. This brings his current contract total to $310 million. Burrow's new AAV (average annual value) is $55 million, which is the highest in the league, surpassing Justin Herbert's $52.5 million. 

Guarantees

This deal includes $146.51 million guaranteed at signing which consists of a $40 million signing bonus, 2023 P5 salary ($1.01 million), 2024 P5 (base) salary ($10.714 million), 2024 option bonus ($55 million), 2025 P5 salary ($25.25 million), 2025 option bonus ($10 million) and a $4.5 million roster bonus that was paid out as part of his last contract. 

On the fifth league day of 2025, Burrow’s 2026 P5 salary ($25.25 million) and 2026 option bonus ($10 million) become fully guaranteed.

On the fifth league day of 2026, $18.3 million of his 2027 P5 salary becomes fully guaranteed. The entire $27.25 million was injury guaranteed at signing. His remaining 2027 salary ($8.95 million) and 2027 option bonus ($10 million) become fully guaranteed on the fifth league day of 2027. Altogether, this contract contains $219.01 million in guarantees.

Cap Breakdown

Because of the two years left on Burrow's rookie deal, his cap hit is relatively low for the 2023 and 2024 seasons. The extension officially kicks in for the 2025 season, and so does Burrow's cap hit. Cap hits for the next four years stay around the mid-$40 million to low-$50  million range. We could potentially see some movement with money to create space in the latter years of the deal. His 2029 cap hit won't stay at $68 million as the Bengals will most likely extend Burrow or move money around beforehand. Three void years have been added to the contract for cap purposes. 

Cap Hit by Year

- 2023: $19.51 million
- 2024: $29.71 million
- 2025: $46.25 million
- 2026: $48.25 million
- 2027: $52.25 million
- 2028: $53.5 million
- 2029: $68.53 million

Cash Breakdown

Burrow's highest cash years will come in 2023 and 2024 due to the $40 million signing bonus and massive $55 million option bonus. 

Cash Flow by Year

- 2023: $45.54 million
- 2024: $65.71 million
- 2025: $35.25 million
- 2026: $35.25 million
- 2027: $37.25 million
- 2028: $40.5 million
- 2029: $50.53 million

Contract Table

Final Thoughts

Overall, the size of the deal may be a bit of a surprise to some, but this is what Burrow is worth. He has proven to be an elite talent who can get Cincinnati to where they want to be. The structure is fine, nothing out of the ordinary of what we usually see. You can assume restructures will be made at some point, depending on how things go for the Bengals. The Bengals are still fine with the cap. It will be interesting to see the structure of Ja’Marr Chase’s deal if they can come to an agreement.