Derrick Barnes and D.J. Reed’s new contracts with the Detroit Lions have a similar structure. Both deals utilize a strategy that involves option bonuses and void years, helping spread out their cap hits over the next several seasons. While D.J. Reed’s contract had already been examined for its unique structure, it turns out Barnes’ deal follows a very similar approach. Both contracts feature larger cap hits in the second year, with a notable dip in the third year due to a significant dead cap hit in 2028, which results from the use of option bonuses for the final season.
The reasoning behind creating additional cap space for 2027, while planning for a heavy cap charge in 2028, is mainly due to the easier management of cap hits when spread across multiple years. If the signing bonus were treated as salary, it would cause a substantial cap hit in 2027. Additionally, as the salary cap increases annually, future cap hits become less restrictive since they represent a smaller percentage of the overall cap. For example, a $40 million cap hit would be 20% of a $200 million cap, but only 18% if the cap rises to $220 million.
There’s another possible reason for pushing more significant cap hits into 2028. By then, Jared Goff will be 34 years old, and Detroit might choose to move on from him, possibly bringing in a new quarterback on a rookie deal. Furthermore, key players like Amon-Ra St. Brown and Alim McNeill will also have their large contract extensions hit their final year, and the Lions could either cut them (saving around $22 million each) or extend them, potentially lowering their cap hits in that season. If Goff is still playing at a high level, an extension could be in the cards.
An important factor to consider is the NFL’s television contract, which has an opt-out clause after the 2028-29 season. If the league negotiates a new deal, it could lead to a substantial increase in the salary cap, similar to the 14% jump after the last TV deal.
Importantly, the option bonus gives the Lions flexibility if they wish to part ways with Barnes after two seasons. This flexibility is similar to if the bonus were simply a non-guaranteed salary. Ultimately, the Lions continue to evolve their strategies for managing cap space, with the use of option bonuses being the latest trend in their contracts.
