A Closer Look at Derrick Henry's Contract

The deal does not makes the NFL's 2019 rushing champion the highest-paid player at his position, but it provides two years of absolute security.

The Tennessee Titans opened their checkbook but did not break the back when they signed running back Derrick Henry to a four-year, $50 million contract extension Wednesday.

The deal did not re-set the market or make Henry the highest-paid player at his position, in terms of total value or average annual salary. It did provide the franchise some immediate salary cap relief and the opportunity to add additional pieces for the 2020 season.

Here is a closer look at the deal and what it means to Henry and to the Titans, based on information from OverTheCap.com.

Upfront money: Henry got a $12 million signing bonus and will earn $3 million in base salary this season. That makes his total 2020 compensation $15 million, an increase of $4.722 million over what he would have made this season on the one-year, non-exclusive franchise tender he signed in April.

Clearing cap space: By spreading the salary cap hit over the course of the entire contract ($3 million per season), the Titans gained immediate relief under this year’s cap. Henry’s cap number is now $6 million, which is $4.278 million less than the cap hit would have been on the one-year, non-exclusive franchise tender. Tennessee now has more available salary cap space than all but five other teams.

In good company: The contract makes Henry one of four running backs who currently have deals with total values of at least $50 million. Ezekiel Elliott ($90 million), Christian McCaffery ($64,063,412) and Le’Veon Bell ($52.5 million) have bigger contracts. At $12.5 million per year, Henry is one of five running backs whose deals average better than $10 million per season and with $25.5 million guaranteed, he is one of seven assured of at least $25 million from their current pacts.

Climbing costs: Henry’s base salary increases throughout the life of the deal. He is scheduled earn $10.5 million in 2021, $12 million in 2022 and $12.5 million in 2023. That is unusual among the biggest contracts general manager Jon Robinson has negotiated. Taylor Lewan’s top salary comes in the second year (2020) of his current five-year contract. Ryan Tannehill’s four-year pact maxes out, in terms of base salary, in the third year. Rodger Saffold sees a slight decrease from the previous two in the final season of his four-year deal.

Rolling the dice: While the Titans’ current salary cap situation is comfortable, things could get dicey in 2021 if – as expected – the salary cap decreases due to lost revenue from the impact of the COVID-19 pandemic. Right now, only nine teams have more money committed to 2021 than Tennessee, which has more than $107 million of salary cap space devoted to seven players. If the cap decreases significantly, one or more of those seven will have to be released.

Midway evaluation: Henry’s 2021 salary is fully guaranteed. That fact combined with the signing bonus makes it basically impossible for the Titans to cut Henry for the next two years. After that, though, the opportunity to reevaluate things increases noticably. If Henry is released following the 2021 season, it would cost $6 million in dead money but would create $9 million in cap savings. The next year, those numbers go to $3 million and $12.5 million, respectively. So, if Henry gets hurt or his production unexpectedly tanks, the Titans won’t have to ride the deal all the way to the finish.

People will debate whether it is a good deal for the Titans or for Henry. The best part for both sides is that it is done.