The Redskins have paid Jordan Reed well with a contract extension that is worth $46.7 million over five years including $22 million guaranteed and $14 million fully guaranteed at signing. But the team also has some protection if Reed’s injury issues return and they can end the contract after just two seasons with relatively minor salary cap pain.
The average annual extension value of $9.35 million per year will make Reed the second highest paid tight end in the NFL, behind only Seattle's Jimmy Graham.
Here are some of the relevant points about the contract:
—The five-year extension was added on to his existing contract, which had the coming season left on it. Reed is now under contract to the Redskins through 2021.
—His cap hit for 2016 goes up from $1.8 million to $3.4 million. That is due to the addition of $1.8 million for the prorated portion of his $9 million signing bonus and a slight lowering of his base salary.
—The fully guaranteed amount is from the signing bonus and guaranteed salaries of $1.25 million in 2016 and $3.75 million in 2017. His $8.25 million salary in 2018 becomes fully guaranteed if he is on the roster on a designated date in March of that year.
—His non-guaranteed salary in 2019 is $7.7 million, increasing to $8.25 million in 2020 and $8.75 million in 2021, the final year of the deal.
—Starting in 2017 he is eligible for up to $250,000 per year in per-game roster bonuses. Each game that he is on the active 46-man game day roster he will earn an additional $15,625.
—The salary cap hits are $5.8 million in 2017, $10.3 million in 2018, $9.72 million in 2018, $10.3 million in 2020, and $9 million 2021.
—It is no accident that the cap number is relatively low in 2017. That is the same year that the cap hit for cornerback Josh Norman’s contract will shoot up to $20 million. The structure of Reed’s contract will help them fit in Norman’s deal plus those of a few other key free agents they will want to re-sign, a list topped by quarterback Kirk Cousins.
—While the Redskins hope that Reed is productive and finishes out his contract as a productive member of the team, they do have options if things don’t work out. It would be expensive to move on after the 2017 season, with a dead cap hit of $10.95 million. That is prohibitive but if they make a move prior to the 2018 salary guarantee kicking in there would be just $5.4 million in dead cap to deal with.
—The dead cap number decreases to $3.6 million in 2019, $1.8 million in 2020, and zero in 2021.