Justin Herbert QB
| Reported deal: | 5-year, $262.5 million extension |
|---|---|
| New money: | $262.5 million |
| New years added: | 5 |
| Technical new-money APY: | $52.5 million |
| Reality APY: | $42.3 million |
| Verdict: | Market Rate |
While Herbert's deal was reported as a 5-year, $262.5 million extension worth $52.5 million per year, the actual structure reveals a different story. Herbert still had two years remaining on his rookie contract worth $33.7 million ($4.23 million in 2023 and $29.5 million in 2024).
Justin Herbert signed a 5-year, $262.5 million extension with the Los Angeles Chargers on July 25, 2023, making him the highest-paid quarterback in NFL history at the time with a reported $52.5 million average annual value. The deal was announced just one day before training camp and includes a no-trade clause, positioning Herbert as the franchise cornerstone through the 2029 season. The extension includes $133.7 million fully guaranteed at signing and $193.7 million guaranteed for injury, with the potential for guarantees to reach $218.7 million.
The contract came after Herbert completed his third NFL season, becoming eligible for an extension three years into his rookie deal. The Chargers proactively secured their franchise quarterback before other elite QBs like Joe Burrow could set the market higher. Herbert received $100 million in the first year of his extension, setting a new record for upfront cash in Year 1 of a quarterback extension at the time.
Additional Contract Details
| Contract type | Extension |
|---|---|
| Contract through | 2029 |
| Guaranteed at signing | $133.7 million |
| Total guarantees | $218.7 million |
| Date signed | 2023-07-25 |
| Last updated | 2026-06-13 |
Reality Check
While Herbert's deal was reported as a 5-year, $262.5 million extension worth $52.5 million per year, the actual structure reveals a different story. Herbert still had two years remaining on his rookie contract worth $33.7 million ($4.23 million in 2023 and $29.5 million in 2024). When combined with the extension, Herbert actually signed a 7-year, $296.2 million deal worth $42.3 million per year in true average annual value - significantly less than the reported $52.5 million APY.
The guaranteed money structure provides strong early protection with $133.7 million fully guaranteed at signing, but the total guarantees of $218.7 million are spread across the deal's length. Herbert's 2026 salary becomes fully guaranteed if he's on the roster on the third day of the 2025 league year, creating a practical decision point for the team. The deal includes option bonuses of $50.6 million in 2024 and $45 million in 2025, along with escalators for playoff success including $1.25 million bonuses for AFC Championship and Super Bowl victories.
Frequently Asked Questions
Is Herbert really making $52.5 million per year?
No, that's new money APY. His actual 7-year deal averages $42.3 million per year when including the two remaining years on his rookie contract.
How much guaranteed money did Herbert get upfront?
Herbert received $133.7 million fully guaranteed at signing, plus $100 million in Year 1 cash flow, setting a record for first-year payments at the time.
When can the Chargers realistically move on from Herbert?
The practical out point comes after 2025, as his 2026 salary becomes guaranteed if he's on the roster on the third day of the 2025 league year.
Does Herbert's deal include performance incentives?
Yes, Herbert can earn $1.25 million bonuses for winning the AFC Championship and Super Bowl, along with other escalators built into the contract structure.
How does Herbert's deal compare to Lamar Jackson's contract?
Jackson's 5-year, $260 million deal is a true $52 million per year, while Herbert's actual APY is $42.3 million when accounting for his remaining rookie years.
Sources
- https://overthecap.com/player/justin-herbert/8746
- https://www.espn.com/mlb/story/_/id/38068747/sources-chargers-qb-justin-herbert-agree-5-year-262m-extension
- https://www.nbcsports.com/nfl/profootballtalk/rumor-mill/news/the-truth-of-justin-herberts-deal-seven-years-42-3-million-per-year
- https://www.spotrac.com/nfl/los-angeles-chargers/justin-herbert-47599/
- https://www.nfl.com/news/justin-herbert-chargers-agree-to-five-year-262-5-million-extension
