Aaron Rodgers' extension with Green Bay Packers includes $150 million over first three years

[Auggie]

GREEN BAY, Wis. -- The contract extension that quarterback Aaron Rodgers signed with the Green Bay Packers suggests there's a good chance they will be together for at least the next two seasons.

The deal signed Tuesday, a week after he announced he would return to the team after contemplating his future, is essentially a three-year, $150 million deal that also includes two voidable years in 2025 and 2026 that help for salary-cap purposes, according to a copy of the contract obtained by ESPN.

Rodgers, 38, had been on the books for a salary-cap charge of $46,144,156 million, but that figure has been reduced by about $18 million.

The reigning two-time league MVP will make $41.95 million this season, which is fully guaranteed in the form of a $40.8 million roster bonus (which will be treated as a signing bonus for salary-cap purposes) and a base salary of $1.15 million. His 2023 pay of $59.465 million also is guaranteed. In 2024, his $49.25 million is guaranteed only against injury at the time of signing.

MORE: https://www.espn.com/nfl/story/_/id/33508952/aaron-rodgers-new-deal-green-bay-packers-includes-150m-first-three-years

Up to $150 million guaranteed? Holy jumpin' catfish!

Also from the link: If Rodgers retires after one season, gets released or is traded in 2023, the Packers would have to absorb at least $68 million in dead money (and up to $99.8 million if it occurred before June 1) -- a sign (according to the link) that he intends to or has committed to playing at least two more seasons. In 2024, the dead money could be reduced to as low as $27.6 million.

NFL signing bonuses, explained (as of April 29, 2021):

Each team in the NFL is subject to a salary cap of ​$182.5 million​. Signing bonuses are part of the cap, but with special rules to prevent abuse. To circumvent the cap, teams pay low amounts in the early years of a contract and higher amounts in later years. The contracts are not guaranteed, so teams may release players to avoid the higher salaries. To induce players to sign despite this, the teams pay large signing bonuses that the players can keep even if the team releases them. These bonuses affect the salary cap because they are included, but they can be prorated for up to five years. https://smallbusiness.chron.com/effect-signing-bonus-salary-cap-38630.html

Yeah, I was curious (after all these years!) how a team gets away with it.

[Chainfire]

1. It is amazing to me how much value we put on entertainers.

[jimfields33]

3. Been like that since the 40's at least.

[underpants]

2. I'm just curious as to how they can sign other players

That’s a big chunk of their cap.
Seattle was great while Russell Wilson was still on his rookie 6th round pick contract. When they had to pay him on his second contract the team was noticeably worse. They couldn’t go after a lot of talent and their talent went away. The same could be said for Baltimore and Flacco.

[Auggie]

4. Exactly

This year Rodger's base salary of $1.15 million counts against the cap and a portion of the signing bonus, so for 2022 and 2023 Green Bay can field a competitive team. Obviously the Packers are going "all in" for the next two years and with Rodgers running things. I'm guessing the dead money, and rebuild, starts in 2024 (or 2025) if Rodgers plays -- can play -- two or all three years.