With a salary cap number of $21.9 million, it was widely believed that Tyreek Hill would sign an extension this offseason as he nears the end of his current NFL contract.
Kansas City Chiefs offered Hill permission to look for another team after delayed talks between the two sides.
With the signing of a three-year contract extension, Hill received a total of $54 million in additional compensation. Hill was one of the highest-paid wide receivers in the NFL, earning an average of $18 million a year.
Hill was compensated with only a $5.8 million signing bonus and $22.54 million in contractual obligations as a result of the contract.
There’s something odd about the contract’s structure. Less than $5 million in salaries were exchanged as part of this arrangement.
Despite this, roster bonuses for 2020, 2021, and 2022 seasons ranged from $11.9-16.5 million each.
Bonuses, however, have a strange organizational structure. Much of Hill’s 2020 and 2022 roster bonuses, according to Spotrac, are conditional on his continued presence on the roster in 2020 and 2022, respectively.
Hill, for example, is said to have gotten his $15.2 million roster bonus on February 15, 2021, according to reports. There will be a $12 million bonus following the Super Bowl in 2023 for the same reason in 2022.
An additional incentive is a $3 million reporting bonus at the start of training camp in 2022. In 2022, there are also $1.5 million in active bonuses per game and a $500,000 incentive for workouts.
As a result of Hill’s earlier legal issues, the Chiefs may have erected all this in order to safeguard themselves.
By Adam Schefter’s estimate, the four-year contract extension for Hill will cost them $120 million. At least $72.2 million of Hill’s salary is locked down.
Three years of the contract are said to be worth $75 million, with the possibility of an additional year’s worth of compensation.
How much did the Chiefs offer Tyreek?
Tyreek at his time with the Chiefs was offered $1,035,000 as a base salary in his three years contract with them