Contract breakdown via Popper (can't copy the table):
A lot to digest, but let’s dive into some details. For a quick refresher, signing bonuses refer to bonuses due to a player when he signs the contract. Option bonuses are bonuses due to a player in a specific year of the contract. In both cases, the bonuses are prorated — or divided equally — over the length of the deal, with a maximum of five proration years. The signing bonus is prorated starting in the year the contract was signed. The option bonuses are prorated starting in the year the option goes into effect.
Herbert’s signing bonus is $16.12 million. Prorated over five years — 2023 to 2027 — that comes out to $3.22 million against the cap in each of those seasons. The 2023 cap hit includes the signing bonus already existing on his rookie deal, which is why that number is higher.
Herbert is due a $50.61 million option bonus in 2024, which we have labeled “OPT 1.” Prorated over five years — 2024 to 2028 — that comes out to $10.12 million per year. Herbert is then due a $45 million option bonus in 2025, which we have labeled “OPT 2.” Prorated over five years — 2025 to 2029 — that comes out to $9 million per year. Roster bonuses are due if a player remains on the roster on a specific date in that league year, and they count against the cap.
In terms of guaranteed money, Herbert is guaranteed $133.7 million at signing, which includes the signing bonus, the two option bonuses and his base salaries through 2025. His 2026 and ’27 salaries are guaranteed for injury, increasing the guarantees to $193.7 million. And $25 million of his 2028 salary will be guaranteed at a later date, leading to the $218.7 million in total guarantees.
The deal was structured so that Herbert’s 2023 cap hit is completely unchanged, down to the dollar. The big takeaway for the immediate future is that the Chargers will save more than $10 million in cap space on Herbert’s 2024 cap hit. According to Over the Cap, the Chargers are currently $60.58 million over the projected 2024 cap, largely due to the restructures they did this past offseason on contracts for Joey Bosa, Khalil Mack, Keenan Allen and Mike Williams. Those $10 million in savings will go a long way toward the Chargers navigating a rather precarious cap situation next offseason.
Herbert’s cap hits then begin to spike in 2025, peaking at over $70 million in 2028, which would be his age 31 season.
...
Over the Cap offers projected base salary caps through 2026. In 2025, Herbert would account for 13.2 percent of the projected cap of $282 million. In 2026, he would account for 15 percent.
...
theathletic.com/4721683/2023/07/26/justin-herbert-chargers-contract-details/
