Unpacking Josh Allen’s Contract: What It Reveals About the Flaws in ‘New-Money’ Myths

This topic might not be everyone’s cup of tea, but for those who dig deep into NFL contracts, it’s a real eye-opener.

For years, people have been misled by the term “extension” in contracts. When you hear about a player getting a new deal that’s longer than their old one, it gets dubbed an extension. But here’s the truth: there are no “extensions” in the NFL. Each new contract completely replaces the old one.

Imagine this: Player A has two years left on a contract worth $5 million a year. Then, they sign a new contract for four years at $10 million a year. People might say they have a $40 million deal with $30 million in “new money.” But they’re actually just getting their previous contract counted as part of this new deal, making it tricky to see what’s really going on.

Take Dak Prescott’s recent deal. Officially, it looks like a four-year, $240 million contract, making his yearly average $60 million. However, his previous contract still counted for some of that, bringing his real yearly average down to $53.8 million.

Now let’s talk about Josh Allen. He recently signed a six-year contract worth $330 million, averaging $55 million a year. Here’s where it gets a bit wild: if we use the same “new money” logic, his deal could show an average of $87.723 million per year. It sounds impressive, but it’s misleading.

Why do contracts get reported this way? Some analysts argue it misrepresents players’ true earnings. As Charles Robinson from Yahoo Sports pointed out, valuing Prescott’s deal as $60 million per year creates a distorted view. When you compare that to Allen’s or even Deshaun Watson’s five-year, $230 million contract, which holds a “new money” value of $94 million, it becomes clear that this system needs a serious redesign.

Many fans and analysts believe it’s time to stop using “new money” as a metric. A new contract should simply be valued at what it is without comparing it to old figures. Just getting rid of the “new money” narrative can lead to clearer conversations about contracts.

In the end, whether you’re a fan or just curious about how these numbers are calculated, understanding the realities behind NFL contracts is crucial. It’s a complex web, and keeping it straightforward can benefit everyone involved.

To read more about NFL contracts and their complexities, check out this analysis from CBS Sports.

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