After an incredible third season in the NFL, Josh Allen signed a contract extension with the Buffalo Bills. Let’s take a look at the terms of Allen’s new contract and how his salary cap numbers are set to play out throughout the deal’s life.
Josh Allen’s contract details and bonuses
After being selected seventh overall in the 2018 NFL Draft, Allen signed a four-year contract worth $21.4 million. The agreement contained a $13.5 million signing bonus, and all $21.4 million is fully guaranteed. In addition, Allen’s contract included roster bonuses in 2019, 2020, and 2021. These bonuses were set to be paid at the beginning of training camp in each of those years.
On May 3, the Bills exercised Allen’s fifth-year option, worth around $23 million. Allen’s fifth-year option was set to be paid as salary and was fully guaranteed.
On August 6, 2021, the Bills and Allen agreed to a six-year, $258 million contract extension. The deal contains $100 million in fully guaranteed money and a total of $150 in guarantees throughout the contract’s life. As part of his new contract, Allen received a $16.5 million signing bonus.
Additionally, Allen will receive an option bonus of $42.4 million in 2022. That will prorate at $8.5 million per year over the following five years.
There are also rolling guarantees in Allen’s new contract. On the fifth day of the 2023 league year, $10 million of his 2024 salary becomes guaranteed, as does $16.5 million of his 2025 roster bonus. Then a year later, $10.5 million of his 2025 salary becomes guaranteed.
Allen has eight years remaining on his contract
Allen’s original four-year contract was due to expire following the 2021 season. However, by exercising the fifth-year option, Allen’s contract was to expire following the 2022 season.
The Bills then extended that by a further six years. Therefore, Allen will now be under contract through the 2028 season. His first opportunity to hit free agency would not come until 2029 when he will be 32 years old.
What impact does Allen’s deal have on the Bills’ salary cap?
Allen is set to count $10.2 million against the Bills’ salary cap in 2021. Half of that is made up of the proration of his two signing bonuses. His rookie signing bonus has a remaining proration of just under $3.4 million and the new signing bonus is added to that at $3.3 million.
The remaining salary cap number is constructed of Allen’s $920,000 base salary and a $2.6 million roster bonus.
In 2022, Allen will carry a cap hit of $16.4 million. There is $3.3 million in prorated signing bonus, $.1 million in salary, a $500,000 workout bonus, and an $8.5 million option bonus.
Where does this contract place Allen in the landscape at QB?
This contract makes Allen the second-highest-paid QB in terms of average annual value, behind Patrick Mahomes. Yet, Allen tops the list in terms of both fully guaranteed money ($100 million) and total guarantees ($150 million).