Aaron Rodgers’ new contract is complete.
NFL Network’s Ian Rapoport and Tom Pelissero reported Tuesday that Rodgers’ new extension is official and signed, per sources informed of the situation. The team later officially announced the signing.
When Rodgers decided to return to Green Bay last week, the decision came with a new four-year contract extension set to make the back-to-back MVP the highest-paid player in the NFL on a per-year basis.
After a week of back-and-forth with the Packers on the exact structure, Rodgers will make an average of $50 million per year over the first three years of the contract. Rapoport added that the deal includes two placeholders on the back end for cap purposes that could be redone at that point.
The final details of Aaron Rodgers’ new deal have been ironed out.
According to people with knowledge of the situation, Ian Rapoport and Tom Pelissero of NFL Network reported on Tuesday that Aaron Rodgers’ new contract deal is official and has been signed. After some time had passed, the club made the signing public.
When Aaron Rodgers made his choice to return to Green Bay last week, it came with a new four-year contract deal that was poised to make him the highest-paid player in the NFL on a per-year basis. Rodgers had won the MVP award back-to-back years in a row.
Rodgers will earn an average of $50 million per year for the first three years of the contract. This figure was determined after a week of negotiations with the Packers regarding the specific structure of the deal. Rapoport also mentioned that the agreement has two cap placeholders on the back end that might be reworked at a later time. These placeholders pertain to the salary cap.
“We are very pleased to be able to come to an agreement with Aaron that keeps him in Green Bay,” Packers general manager Brian Gutekunst said in a statement. “His play on the field and leadership in our locker room remain vital in our pursuit of another Super Bowl title. The agreement also allows us to maintain and enhance what we feel is already a very competitive roster.”
Rodgers was set to earn a base salary of $26.47 million in 2022, with a salary-cap number of $46.664 million. The new deal bumps up his pay this season while lowering the cap figure.
The Packers’ quarterback is set to earn $42 million in 2022, $59.515 million in 2023 and $49.3 million in 2024, per Pelissero, getting him to the three-year, $150.815 million mark.
After the three years, Rodgers could retire at 41 years old, or the Packers could look to rework the deal again.
The new deal significantly reduces Rodgers’ cap hit in 2022 to $28.5 million (roughly $18 million lower than scheduled), which gives the Packers the cap space to ensure they’ll remain Super Bowl contenders.
In the past day, the Packers have maneuvered to get under the salary cap, which would allow them to make moves in free agency. Green Bay extended Rodgers and Preston Smith, lowering their cap figures this season, and released Za’Darius Smith and Billy Turner. The changes have cleared $45 million in cap space.
Pushing Rodgers’ big cap hits to the future was the only way for Green Bay to give the back-to-back MVP the raise he deserved while keeping the NFC North champs’ roster mostly in place. The Packers will worry about the bill coming due down the road — when the cap is expected to increase significantly.
At the end of the three years, Rodgers might choose to hang up his cleats at the age of 41, or the Packers could attempt to renegotiate the deal.
The new agreement drastically lowers Rodgers’ salary hit in 2022 to $28.5 million, which is almost $18 million less than was originally projected. This provides the Packers with the cap flexibility necessary to ensure that they will continue to be contenders for the Super Bowl.
The Packers have been working hard over the past day to find a way to slip under the salary cap, which would give them the ability to make further moves in free agency. The Packers have decided to release Za’Darius Smith and Billy Turner after extending their contracts with Aaron Rodgers and Preston Smith, which will result in a reduction of the cap figures for this season. Because of the modifications, there is now an additional $45 million in cap space.
The only way for Green Bay to give the two-time reigning MVP the increase he earned while keeping the roster of the NFC North champions basically intact was for Green Bay to push Aaron Rodgers’ significant salary cap obligations into the future. The Packers will be concerned about the payment that is due in the not-too-distant future, which is when the cap is anticipated to grow dramatically.