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.
