Carr signs 5-year $125 million contract

When you know, you know, and the Raiders know they have a keeper in Derek Carr. So much so that they have committed 5-years and $125 million in the 26-year-old quarterback, making him the highest paid player in NFL history surpassing Colts quarterback Andrew Luck. As the news progresses we will hear more about the details of the contract, but we recently suggested that much of the salary in the contract would be backloaded in favour of the Nevada state tax once the Raiders relocate in 2020.

Carr is coming off his best NFL season by far, not necessarily statistically (other than passer rating where he set a new career high of 96.7) but as a leader, player and entertainer. The Raiders season had fans on the edge of their seats all year, much through Carr’s fantastic play and cool demeanour under pressure. You have to go all the way back to 2002 since the Raiders last had a franchise quarterback, so it’s understandable that now they have one that they don’t want to let him go. And rightly so, when combined with Amari Cooper and new running back Marshawn Lynch you get one of the best offensive fire powers in the league to match the likes of the Falcons and Patriots.

With the salary cap always increasing and contracts getting bigger and bigger, it’s likely that Carr won’t remain the highest paid player for that long. Aaron Rodgers, who already has a Superbowl title to go along with his two MVP awards and multiple All-Pro and Pro-Bowl honours, is due for a new contract and will likely set the new record once again. Then there is Matt Ryan, who won his first MVP award and took the Falcons to the Superbowl this year, who is also due a new pay day.

If Carr keeps improving and playing the way he is, those two guys can get paid as much as they want- it won’t stop the Raiders winning. Besides, I’m sure there is something he can do in Las Vegas to make some extra cash if he needs…

Tax on the mind as contract extensions loom large

They say only two things are certain in life; death and taxes, but in this case taxes may work out to favour some of the young Raiders core. In the current location, players have a 13.3% state tax rate from California, which just so happens to be the largest in the country. When the team finally moves to Las Vegas, that entire 13.3% will be dropped due to Nevada not having a state tax.

Think about how much money that could save a player who is on $1million salary per year. Then think about how much that could save someone like Derek Carr, who is rumoured to be in the latter stages of agreeing a deal that pays him $25million per year (the highest in the league). Its no wonder that these contract talks may be taking longer than your average player, seeing as Carr will likely want to backload the majority of his deal for the projected 2020 move date and save himself millions.

Its not just Carr that will be doing this; Khalil Mack and Amari Cooper will likely be signing contracts near the top of their position pay level so will also bear in mind the potential gains of backloading their contracts. In fact, any player on the Raiders roster will be thinking about their contract length and pay if it can give them, in theory, an extra 13.3% of their salary per year once the move happens. Its also an interesting note when considering how the Raiders will fare in free agency once they move Las Vegas, but that talk can be tabled for another few years, sadly.