Why Do the Top Paid NFL QBs Keep Getting Bigger Contracts?
The NFL quarterback contract environment has come a long, long way from where it started, with record deals with biggest NFL signing bonus now becoming the norm. As the league expands and revenues increase, lucrative salaries of NFL quarterbacks just keep on climbing higher. Why are the deals consistently going up? The answer is because of a combination of market forces, the needs of teams, and the growing value of the quarterback position.
The Market Sets the Price
Among the most powerful reasons that high-paid NFL quarterbacks continue to receive larger paychecks is the nature of the market itself. In the NFL, contracts for top quarterbacks are compared to previous contracts. Whenever a franchise quarterback receives a record-breaking contract, it sets a new precedent, and future contracts must then exceed the last massive paycheck.
For instance, when Patrick Mahomes signed his 10-year, $450 million contract in 2020, it reset the quarterback market. Subsequent deals, such as those of Deshaun Watson, Jalen Hurts, and Joe Burrow, followed this upward trend. Franchises that want to lock up their franchise signal-callers have to negotiate in this rising economic model.
The Quarterback is the Most Valuable Position
The quarterback is the most valuable position on the field in football. A franchise quarterback makes the difference between perennial playoff appearances and middle-of-the-pack teams. Because of this, franchises will shell out top dollar to get an elite quarterback under center.
Unlike other positions, where depth can make up for the loss of one star, a team minus a talented quarterback will not be a Super Bowl contender. Due to this, franchises nest their quarterback into the salary roster, leading to rising contracts.
Increasing NFL Revenue Fuels Larger Contracts
The NFL’s revenues keep increasing on the back of high-value television contracts, streaming deals, and sponsorships. As more funds flow into the league, the salary cap increases as well, providing teams with greater ability to make higher offers and increase the average NFL pay.
For example, the NFL’s latest media rights deal of over $110 billion promises that the franchises will have the wherewithal to sign their superstar players to humongous contracts. As the salary cap increases, quarterback salaries move along in tandem automatically.
Guaranteed Money and Contract Structures
One of the rising quarterback contract trends is the inclusion of large amounts of guaranteed money. Deshaun Watson’s 2022 fully guaranteed $230 million deal with the Cleveland Browns shocked the league and influenced future agreements. More quarterbacks negotiate for higher amounts of guaranteed money, which costs teams more financially.
Additionally, contracts often come with cap-friendly terms, such as signing bonuses and backloaded deals, so teams are able to pay more money without damaging their salary cap in the near future. What that means is that it is less difficult for teams to sign record-breaking contracts without compromising their ability to build a good team.
Teams Can’t Afford to Lose Their Star QB
When a quarterback reaches elite status, teams won’t let them reach free agency. Losing a franchise quarterback is more expensive than spending on a record-breaking contract. Teams desiring to retain their top signal-caller typically strike extensions beforehand while the player’s contract is expiring.
One of the greatest examples is that of the Bengals signing Joe Burrow’s contract extension prior to him becoming a free agent, making him the league’s highest-paid quarterback at the time. The franchisor was not willing to lose a player of this size, and therefore they made a best-in-the-market offer.
Who Are the Top Paid NFL QBs?
The highest-paid quarterbacks in the league change frequently as players re-sign contracts, but some of the biggest contracts currently belong to:
- Joe Burrow (Bengals) – $55 million a year
- Justin Herbert (Chargers) – $52.5 million a year
- Lamar Jackson (Ravens) – $52 million a year
- Jalen Hurts (Eagles) – $51 million a year
- Patrick Mahomes (Chiefs) – 10-year, $450 million contract
These agreements establish a trend for future transactions so that each subsequent quarterback extension raises the bar.
Largest NFL Signing Bonuses
Signing bonuses assist teams in spreading the salary cap load over time while offering players immediate financial reward. Some of the biggest signing bonuses in NFL history include:
- Patrick Mahomes – $63 million (2020)
- Josh Allen – $42.4 million (2021)
- Dak Prescott – $66 million (2021)
These upfront payments are one of the factors contributing to why quarterback contracts appear to escalate exponentially.
The constant increase of quarterback contracts is the outcome of increasing NFL revenues, market history, and the irrefutable worth of the position. As long as franchises need elite quarterbacks in order to be competitive, the contracts will keep inflating. With every fresh contract re-setting the market, the pattern of record-breaking quarterback contracts is not fading.
FAQ
1. Which Top Earned NFL QBs Delivered on Their Gigantic Contracts?
Not all of the highly compensated quarterbacks have delivered on their contract. While quarterbacks like Patrick Mahomes and Joe Burrow have kept performing at elite levels, others like Russell Wilson and Deshaun Watson have not performed well after gigantic deals.
2. Which of the Top Earned NFL QBs Have the Largest Single-Season Salary?
Joe Burrow is the current record holder of the highest single-year salary in the NFL after his new contract earned him $55 million annually.
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