Why are NFL players getting more guaranteed money than ever before?

NFL fans have witnessed a shocking new pattern emerging this offseason. Unfathomable sums of money are being tossed around by organizations as record-breaking deals seem to fall from the sky. These are not just big contracts in general, but also extensions featuring record guarantees.

The NFL is different from other sports in that contracts are not automatically guaranteed. In MLB, a player gets the exact dollar amount that is reported. But in football, a player may sign a $100 million deal with only about $30 million guaranteed. After that, they could be released before making close to that $100 million.

A good example of this is Patrick Mahomes. He signed a 10-year, $450 million deal but only $141 million of that was guaranteed. His dead-cap value drops to $0 in 2026, which theoretically means the team could cut him loose for no cost with six years remaining on his deal.

Yet things are changing this offseason, most notably thanks to the Cleveland Browns and Deshaun Watson. He signed a fully-guaranteed $230 million deal, which is unprecedented. Players all around the league, such as Aaron Rodgers, Tyreek Hill, and Davante Adams have gotten major guarantees as well. So what has changed and why is this happening?

NFL players can thank two factors for rising guarantees

The first factor is the market itself. Like selling a house, players can look at the market and the latest deals to determine their value. This gets blown out of proportion in the NFL as players know they have leverage, as there is nearly always a franchise in need of their talent.

That explains why when Davante Adams got his deal with the Las Vegas Raiders, Tyreek Hill was in a position to demand more from the Miami Dolphins. In theory, it makes sense that guarantees keep going up. Everyone one-ups each other, at least in the elite tier of players.

Another factor here is the constantly rising salary cap. Teams are making more, and spending more, thus players get more in their own pockets. Teams can also stretch payments to the future via contract restructuring, knowing the financial hit won't be as bad in future years.

Players are well aware of how much team owners are making. They too want a larger piece of the pie and once one star gets a deal, the next star wants more.

A mention here goes to Watson. He got an unprecedented deal from the Browns, which changed the market permanently. While this is great for players, it's not such good news for the franchises. It seems almost a given that in short order another record deal will be signed.

Edited by John Maxwell