Following an offseason of change, Derek Carr and the Las Vegas Raiders agreed to a three-year contract extension worth more than $40 million a year. With Carr now secure in Las Vegas for the near future, let’s take a look at his contract details and his salary cap impact on the Raiders in the coming years.
Derek Carr’s contract details and bonuses
Carr last signed a five-year contract extension worth $125.025 million in 2017. As part of that extension, Carr received $40 million in full guarantees. That included a $12.5 million signing bonus and a $7.5 million roster bonus in 2017. The remaining $20 million consisted of his $5 million salary in 2017 and a $15 million roster bonus in 2018.
The three-year contract extension signed in 2022 will see Carr add another $120.5 million over those three seasons. Including the final year of the previous extension, Carr is set to earn $141.3 million over the life of the four-year deal, with $100 million of that coming in the next three years, per Mike Garafolo. Per Pro Football Talk, the extension contained a $7.5 million signing bonus and just $24.9 million fully guaranteed at signing. There is another $40 million in guarantees that become guaranteed in February 2023.
Carr’s contract length is for another four years
Carr had one year remaining on his old deal when he signed the 2022 contract extension. Therefore, Carr is now under contract with the Raiders for the next four seasons. Carr will play for the Raiders through the 2025 campaign and would be set to be a free agent in the 2026 offseason.
What impact does Derek Carr’s contract have on the Raiders’ salary cap?
Carr is set to have a $19.4 million cap hit in 2022. Of that amount, $17.4 million is base salary, with a $100,000 workout bonus, and $1.9 million in prorated signing bonus. Carr’s cap number will then grow to $34.9 million in 2023, $43.9 million in 2024, and $43.2 million in 2025.
The majority of those cap numbers are as base salary, with under $2 million in prorated signing bonus and a workout bonus each year. The Raiders will have the opportunity to restructure the deal and move that base salary into signing bonuses during the life of the deal.
The Raiders have plenty of options with Carr’s deal in the coming years
The structure of the deal is fairly eye opening in terms of the Raiders commitment to Carr. The only guarantees assured at the time of signing is the signing bonus and the 2022 salary. The remaining $40 million becomes guaranteed the day after the Super Bowl next year.
However, the Raiders have an opportunity to move on from Carr with very little cost after the 2022 season. If the Raiders release Carr after the upcoming season, they will be left with just $5.6 million in dead money for 2023. The only caveat to that is if Carr gets injured in the 2022 season. The remaining $40 million is guaranteed for injury.
If the Raiders do not release Carr ahead of February, 15, 2023, they will be committing to $32.9 million in base salary in the 2023 season. They will also be committing to $7.5 million of his 2024 salary. However, the Raiders could still move on from Carr after the 2023 season. They would be left with around $11 million in dead money in 2024. However, the expectation is that the $7.5 million would be subject to offsets for the Raiders.
Overall, while the sticker price on the deal is nice for Carr, this contract is extremely friendly for the Raiders. The deal shapes out as a series of one year options for the Raiders, with minimal dead money for moving on at any point. However, Carr is among the highest-paid QBs in terms of AAV and has the chance to earn significant money if he performs well over the next four years.