Chargers Sign WR Mike Williams to Contract Extension, Forgoing Franchise Tag

The Chargers have signed wide receiver Mike Williams to a contract extension ahead of the franchise tag deadline.

With the franchise tag deadline set at 4 p.m. ET on Tuesday, the Chargers and wide receiver Mike Wiliams have come to grips on a new contract extension.

According to ESPN's Adam Schefter, the Chargers are signing Williams to a three-year, $60 million deal that includes $40 million guaranteed, marking an average annual value of $20 million per season.

Oct 31, 2021; Inglewood, California, USA; Los Angeles Chargers quarterback Justin Herbert (10) talks to wide receiver Mike Williams (81) during the second half at SoFi Stadium. Mandatory Credit: Orlando Ramirez-USA TODAY Sports

Had the Chargers placed the franchise tag on Williams, he would’ve been on the hook for a guaranteed rate of $18.419 million for the 2022 season.

Williams, the sixth overall pick in the 2017 NFL Draft, was on the books in 2021 for $15.68 million while playing on the fifth-year option. His rookie contract included a four-year, $19.7 million deal with a $12.5 million signing bonus.

He's entering his age 28 season following a year in which he posts career highs in receptions (76) and yards (1,146), along with nine touchdowns.

By keeping Williams in-house, the Chargers, in all likelihood, take themselves out of the market for a first-round wide receiver come draft day. Williams, Keenan Allen and Josh Palmer headline the position – and while the Chargers still could use a vertical threat to strike fear into defenses with a legitimate field-stretcher – the decision to retain Williams makes the wide receiver group less of a pressing need at this point in the offseason.

Oct 10, 2021; Inglewood, California, USA; Los Angeles Chargers wide receiver Mike Williams (81) scores a touchdown against the Cleveland Browns during the second half at SoFi Stadium. Mandatory Credit: Gary A. Vasquez-USA TODAY Sports

The NFL announced Monday that the salary cap for the 2022 season is being raised to $208.2 million.

Prior to singing Williams, the Chargers held $56,316,690 million in cap space, according to Over The Cap.

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Nick Cothrel is the publisher of Charger Report. Follow Nick and Charger Report on Twitter @NickCothrel & @ChargerReport for more Chargers coverage.