I'm sure anyone reading this is aware that CHJ is unhappy with the last year of his current contract, and has not been participating in team activities to date in an attempt to increase his leverage for a contract renegotiation and extension.
Supposedly he is demanding a new contract worth $15M average per year. IMO the Broncos can't afford to pay that, but I think an extension with a significant raise and new guaranteed money is in order. I decided to look at CHJ's contract history, and the contracts of a number of other CBs who are currently making more money than CHJ, and use that information along with my understanding of the Broncos' current and future cap situation to craft a hypothetical contract extension for CHJ that might meet the needs of both sides. My sources for cap and contract information were overthecap and spotrac.
CHJ's contract history:
CHJ was signed by the Broncos as an undrafted free agent in 2011. He signed a 3 year contract with a $2000 signing bonus and 3 years of minimum salaries. During the final year of that contract, he tore his ACL in the divisional round of the playoffs. He played the following season on a 2nd round level RFA tender. On December 12, 2014, he signed a 5 year extension through the 2019 season for $42.5M ($8.5M average per year) with $10M fully guaranteed at signing and $24M in total guarantees. All that guaranteed money has already been paid. His current cap hit for 2019 is $8.767M consisting of $7.8M in base salary + $100K in workout bonus (he did not attend the workouts) + $.867M in remaining prorated signing bonus. For those who insist CHJ took a big home town discount, I'm going to add some of Aqib Talib's contract details for comparison. On March 12, 2014, unrestricted free agent Talib signed a presumably market rate 6 year contract for $57M ($9.5M average per year) with $11.5M guaranteed at signing, and $25.5M in total guarantees.
Highlights of current high dollar CB contracts:
Here I include pertinent details of the current 13 highest CB contracts based on average per year with #13 being the Broncos' Kareem Jackson. Those details are the year the contract was signed, the age of the player at signing, the length of the contract, the total potential contract or extension value, the average per year value, the fully guaranteed at signing money, and the total guaranteed money. I have omitted Patrick Peterson's contract because it was signed back in 2014 when he was only 24 years old, the structure is very atypical, and it's been restructured. For most of the 13 contracts I looked at, the guaranteed at signing money consisted of a signing bonus, and the base salaries for the first 2 years.
2. Josh Norman: In 2016 at the age of 29, Norman signed a 5 year, $75M contract ($15M average per year) with Washington with $36.5M guaranteed at signing, and $50M in total guarantees. The circumstances surrounding that signing were quite unusual. He had been franchise tagged for $13.952M by Carolina, but on April 20, 2016, the Panthers rescinded the franchise tag they'd placed on Norman after he and the team failed to come to an agreement on a long term deal, which made Norman an unrestricted free agent.
8. Stephon Gilmore: In 2017 at the age of 27, Gilmore signed a 5 year, $65M contract ($13M average per year) with $31M guaranteed at signing, and $40M in total guarantees.
On to the CHJ stuff:
I wanted a 3 year extension for CHJ through the 2022 season with $13-14M average per year, and about $30M guaranteed at signing. I wanted most the guaranteed money in 2019 and 2020, and a potential out after 2020, but with enough 2021 dead money to make it likely he would be kept for 2021. I wanted to raise the 2019 cap hit minimally if at all, and I wanted the 2022 year to be an option year. I also had to figure out how to account for the currently existing year when calculating the value of the extension. From looking at Trufant's contract, I found out that you add any change (positive or negative) in the cap number for the already existing contract year to the cap numbers for the additional years. What I came up with was a 3 year extension for $40.9M (13.633M average per year) with $29.5M guaranteed at signing, and $35M in total guarantees. There is a $10M signing bonus that prorates at $2.5M per year over the years 2019-2022. The 2019 and 2020 salaries and $5M of the 2021 salary are guaranteed at signing. The remaining $5.5M of the 2021 salary guarantees if CHJ is on the roster on the 5th day of the 2021 League Year in March. Time to break it down, year by year.
In 2019 CHJ will receive a base salary of $5.5M and a signing bonus of $10M for a total of $15.5M in new cash. His cap hit will be $8.867M ($100K higher than his current 2019 cap hit), consisting of the $5.5M base salary and $3.367M in prorated signing bonus ($2.5M in new prorated signing bonus + $.867M in remaining old signing bonus). The dead money would be $29.5M.
In 2020 CHJ will receive a base salary of $9M, a per game roster bonus for each regular season game active worth $.5M if active for all 16 games, and a workout bonus of $.1M for a total of $9.6M in new cash. His cap hit will be $12.1M (cash + prorated signing bonus). The dead money would be $21.5M.
In 2021 CHJ will receive a base salary of $10.5M, a per game roster bonus of up to $.5M, and a workout bonus of $.1M for a total of $11.1M in new cash. His cap hit will be $13.6M (cash + prorated signing bonus). The dead money would be $10M.
2022 is an option year in the contract. The option must be exercised between the day after the Super Bowl and the end of the 2021 League season in March of 2022 (if it's going to be exercised). If exercised, $1.5M of The $12M 2022 base salary would guarantee. CHJ would receive $12M in base salary, a per game roster bonus of up to $.5M, and a workout bonus of $.1M for a total of $12.6M in new cash. The cap hit would be $15.1M (cash + prorated signing bonus). The dead money would be $2.5M.
Math checking the potential value of the extension:
$.1M in increase in 2019 cap hit + $12.1M (2020 cap hit) + $13.6M (2021 cap hit) + $15.1M (2022 cap hit) = $40.9M ($13.633M average per year):
Total cash contained in contract: $15.5M in 2019 + $9.6M in 2020 + $11.1M in 2021 + $12.6M in 2022 =$48.8M ($12.2M average per year).
Math checking the guaranteed money:
$10M in signing bonus + $5.5M in 2019 base salary + $9M in 2020 base salary + $5M out of 10.5M in 2021 base salary = $29.5M guaranteed at signing.
Add the other $5.5M in 2021 base salary = $35M in total guarantees.
Let's look at it as a potential 2 year extension since the 3rd year is an option year:
Total value of extension: $.1M for increase in 2019 cap hit + $12.1M 2020 cap hit + $13.6M 2021 cap hit + $2.5M in 2022 prorated signing bonus = $28.3M for 2 years ($14.15M average per year).
Total new cash pay out to CHJ from 2019-2021 inclusive: $15.5M in 2019 + $9.6M in 2020 + $11.1M in 2021 = $36.2M ($12.067M average per year).
On to the poll, and then discussion time in the comments.