Josh Allen, Bills quietly renegotiated his contract this offseason

In March, the Buffalo Bills restructured quarterback Josh Allen’s deal to free up cap space, turning his base salary to a “signing bonus” to spread the burden over five years rather than one. That’s a fairly regular and expected move, but according to a new claim, they also changed his contract later this summer to pay him extra money in 2024.

According to Michael Ginnitti of contract website Spotrac, the Bills increased Allen’s compensation by $30 million from the future of his contract to 2024. He was slated to make $30 million in cash for the 2024 season, but he will now make double that amount, $60 million.

Why would the Bills give Josh Allen more cash?

Simply speaking, Allen was drastically underpaid. Allen’s total earnings over three seasons since signing his contract in 2021 have been $95 million. To put that in perspective, Jared Goff earned $80 million and Jordan Love earned $79 million in 2024 alone from their new contracts, while Lamar Jackson earned $111.75 million in 2024 and 2025.

This move gives Allen a four-year total of $155 million, better aligning him with the top deals of the last two offseasons.

How is this different from when we hear a contract was “restructured”?

When a contract is simply restructured, money that was previously scheduled to be paid throughout the course of the current league year in base salary (paid per week during the season) is now paid up front. It’s all from the same league year, so there’s typically no need for the player to sign anything new. They are pleased to receive their money in front.

In this scenario, because they are shifting money from one league year to the next, it must be negotiated and approved by the player. It significantly changes the contract.

What’s the precedent from renegotiating a contract like this?

The Bills do not have a precedent for this. When they wish to pay a player extra money, they sign a contract extension. In this scenario, Allen is already signed through 2028, and with five years remaining on his contract, an extension makes little sense.

There is precedent in the NFL, however. In 2023, the Kansas City Chiefs renegotiated with Patrick Mahomes for the same reason. Mahomes was severely underpaid, and this was a method to increase his earnings.

We theorized in June that Allen would be in line for a new contract based on Mahomes’ example, and the Bills have done exactly that.

How does this move impact Buffalo’s salary cap?

Giving Allen additional money in 2024 resulted in a net zero for his cap hit. When they modified the deal in March, they left $8 million in base salary for 2024. When they renegotiated during the summer, they reduced that figure to the league minimum wage, and the subsequent proration kept his cap number around $30.3 million.

For the time being, the move reduces his 2025 cap hit by approximately $15 million.

Where did the money come from?

This deal already includes money set aside for Josh Allen’s future. They deducted $25 million from his 2025 remuneration (a roster bonus due in March 2025) and $5 million from his 2028 base salary to transfer the $30 million to 2024.

It would not surprise me in the least if they did it again in 2025, with Allen now set to earn only $14.5 million next season.

Now that we’ve answered the major questions, let’s get into the specifics. Feel free to ask me anything in the comments, and I will respond as best I can.

 

Bills 2024 preview: Can Josh Allen and a cast of new characters finally  break through? - CBSSports.com

Josh Allen contract details from March 2024

2024
2021 signing bonus: $3.3 million
2022 option bonus: $8.472 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
Workout bonus: $500,000
Base salary: $8.625 million (fully guaranteed)

Total cash: $30 million
Cap hit: $30.4 million

2025
2021 signing bonus: $3.3 million
2022 option bonus: $8.472 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
Roster bonus: $25 million ($16.5 million fully guaranteed already)
Workout bonus: $500,000
Base salary: $14 million (fully guarantees 3/17/2024)

Total cash: $39.5 million
Cap hit: $60.7 million

2026
2022 option bonus: $8.472 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
Roster bonus: $15 million
Workout bonus: $1 million
Base salary: $22.5 million

Total cash: $38.5 million
Cap hit: $56.431 million

Dead cap if cut: $19.04 million
Cap savings if cut: $37.3 million

2027
2023 restructure: $5.284 million
2024 restructure: $4.175 million
Roster bonus: $25 million
Workout bonus: $1 million
Base salary: $14 million

Total cash: $40 million
Cap hit: $49.5 million

Dead cap if cut: $13.6 million
Cap savings if cut: $35.9 million

2028
2024 restructure: $4.175 million
Roster bonus: $25 million
Workout bonus: $1 million
Base salary: $15.55 million

Total cash: $41.55 million
Cap hit: $45.725 million

Dead cap if cut: $4.175 million
Cap savings if cut: $41.55 million

Josh Allen contract details from summer 2024 renegotiation

The “2024 renegotiation” figure is the prorated amount of the $30 million plus the prorated money from lowering the base wage to league minimum. I didn’t separate them because they happened concurrently.

2024
2021 signing bonus: $3.3 million
2022 option bonus: $8.48 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
2024 renegotiation: $7.5 million
Workout bonus: $500,000
Base salary: $1.125 million (fully guaranteed)

Total cash: $60 million
Cap hit: $30.4 million

2025
2021 signing bonus: $3.3 million
2022 option bonus: $8.48 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
2024 renegotiation: $7.5 million
Workout bonus: $500,000
Base salary: $14 million (fully guaranteed)

Total cash: $14.5 million
Cap hit: $43.4 million

2026
2022 option bonus: $8.48 million
2023 restructure: $5.284 million
2024 restructure: $4.175 million
2024 renegotiation: $7.5 million
Roster bonus: $15 million (guarantees March 2025)
Workout bonus: $1 million
Base salary: $22.5 million

Total cash: $38.5 million
Cap hit: $56.431 million

Dead cap if cut: $69 million

2027
2023 restructure: $5.284 million
2024 restructure: $4.175 million
2024 renegotiation: $7.5 million
Roster bonus: $25 million (guarantees March 2026)
Workout bonus: $1 million
Base salary: $14 million

Total cash: $40 million
Cap hit: $57 million

Dead cap if cut: $53 million
Cap savings if cut: $4 million

2028
2024 restructure: $4.175 million
2024 renegotiation: $7.5 million
Roster bonus: $25 million
Workout bonus: $1 million
Base salary: $10.55 million

Total cash: $36.55 million
Cap hit: $48.225 million

Dead cap if cut: $11.675 million
Cap savings if cut: $36.55 million

Note that both the old and new contracts include incentives and escalators. Per Spotrac:

  • 2025 Escalators
  • 60% Regular Season Snaps + 2024 No. 1 AFC Seed: $2.5M
  • 60% Regular Season Snaps + 2024 AFC Championship Win: $2.5M
  • 60% Regular Seasons Snaps + 2024-25 Super Bowl Win: $5M
  • Annual Incentives
  • 60% Regular Season Snaps + AFC Championship Win: $1M
  • 60% Regular Seasons Snaps + Super Bowl Win: $2.5M
  • NFL MVP: $1.5M

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