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Derrick Barnes’ and D.J. Reed’s new contracts with the Detroit Lions share something in common. Here’s what… and why.
Last week, we broke down the contract of Detroit Lions free agent addition D.J. Reed. It was notable because it was structured a little differently than we’ve seen in previous Lions contracts. Most notably, instead of Reed having a high salary in the final season of his three-year contract, the Lions are putting that money in an option bonus, allowing them to prorate the cap hit of that season—if Detroit opts to pick it up—into the season after Reed is gone.
We’ve also previously broken down Derrick Barnes’ contract, but it turns out those contract details were not comprehensive. Over The Cap has a new structure of Barnes’ contract, and it is essentially structured identically to Reed’s. More specifically, it uses void years and an option bonus to spread out cap hits over the next four years.
Here’s a look at Barnes’ new structure:
And here’s a reminder as to what Reed’s contract looks like:
As you can see, the biggest cap hits for both contracts are in Year 2, while the unusual Year 3 dip is because of the fairly massive 2028 dead cap hit—caused by this relatively new strategy (for the Lions) of utilizing option bonuses in the final year of a contract.
Why are the Lions creating that extra cap space for 2027, but potentially taking on huge cap hits in 2028? Well, for one, it’s just easier to manage a cap hit when it’s spread across two years rather than one. If that signing bonus had just been part of their salary, it would create a huge cap hit in 2027.
Additionally, assuming the cap continues to rise each year, cap hits in the future are less constricting on the salary cap, as they represent a smaller percentage of the overall cap. For instance, a $40 million cap hit when the salary cap is $200 million is 20%. But let’s say the salary cap jumps to $220 million the next year. That same $40 million cap hit would only represent 18% of the cap. So there’s more room to kick some dead cap in the future.
But there may be another reason on top of that. In 2028, Jared Goff will be 34 and in the final year of his current deal. Detroit could easily get out of it, if they wanted, and start anew with a quarterback—one potentially on a rookie deal. 2028 is also the final year of Amon-Ra St. Brown’s and Alim McNeill’s huge extensions. At that point, the Lions could either cut those players (saving around $22 million each) or offer them new extensions, which could cut their cap hits that year ($41M and $29.2M, respectively) down significantly. Obviously, Goff could also get an extension if he’s still playing at a high level.
Note: St. Brown also has an option bonus in 2028, which, if declined, would save an additional $20 million of future cap.
One additional thing to keep an eye on regarding how teams manage their future cap hits. The NFL’s current television deal has an opt-out option after the 2028-29 season. At that point, they could agree to a new deal and that could mean a massive jump in cap hit. After their last TV deal, the salary cap jumped 14%—one of the highest jumps ever—although that was also a response after the NFL salary cap decreased the year before in response to the COVID season.
Keep in mind, though, that the option bonus also gives the Lions a relatively easy out after two seasons (no different than if the bonus had been just a non-guaranteed salary). If Detroit opts to part ways with Barnes after two seasons, here’s what those cap hits would look like:
Either way, it’s interesting to see how the Lions—just like any other team—have balanced the budget not just for the current year, but for plenty of years down the line. Every year, it seems the Lions are developing new strategies to spread out cap hits, and it looks like these option bonuses are the newest trend in their deals.
