Josh Allen’s contract details, salary cap impact, and bonuses
After an incredible third season in the NFL, Josh Allen signed a contract extension with the Buffalo Bills. Let’s take a look at the terms of Allen’s new contract and how his salary cap numbers are set to play out throughout the deal’s life.
Note: Josh Allen signed a six-year extension with the Buffalo Bills for a total value of $258 million on August 6. As reported by ESPN’s Adam Schefter, $150 million is guaranteed. We will update this article as more information regarding the specifics of the deal is revealed.
Josh Allen’s contract details and bonuses
After being selected seventh overall in the 2018 NFL Draft, Allen signed a four-year contract worth $21.4 million. The agreement contained a $13.5 million signing bonus, and all $21.4 million is fully guaranteed. In addition, Allen’s contract included roster bonuses in 2019, 2020, and 2021. These bonuses were set to be paid at the beginning of training camp in each of those years.
On May 3, the Bills exercised Allen’s fifth-year option, worth around $23 million. Allen’s fifth-year option was set to be paid as salary and was fully guaranteed.
On August 6, 2021, the Bills and Allen agreed to a six-year, $258 million contract extension. The deal contains $100 million in fully guaranteed money and a total of $150 in guarantees throughout the contract’s life.
Allen has eight years remaining on his contract
Allen’s original four-year contract was due to expire following the 2021 season. However, by exercising the fifth-year option, Allen’s contract expires following the 2022 season.
The Bills then extended that by a further six years. Therefore, Allen is set to be under contract through the 2028 season. His first opportunity to hit free agency could not come until 2029, when he will be 32 years old.
What impact does Allen’s deal have on the Bills’ salary cap?
Allen was set to count $6.9 million against the Bills’ salary cap in 2021. Half of that was made up of the proration of his $13.5 million signing bonus, at just under $3.4 million per year. The remaining salary cap number was constructed of Allen’s $920,000 base salary and a $2.6 million roster bonus. In 2022, Allen was set to carry a cap hit of $23 million under his old deal.
However, those numbers may change with the signing of his new deal. Any signing bonus that Allen receives will begin prorating against the cap in 2021. Signing bonuses can only prorate over five years. As a result, if Allen receives a $50 million signing bonus, it would prorate at $10 million per year from 2021 to 2025.
Where does this contract place Allen in the landscape at QB?
This contract makes Allen the second-highest-paid QB in terms of average annual value, behind Patrick Mahomes. Yet, Allen tops the list in terms of both fully guaranteed money ($100 million) and total guarantees ($150 million).
Ben Rolfe is a content director at Pro Football Network and is also a member of the Fantasy Sports Writers Association (FSWA). You can find him on Twitter @BenRolfePFN.