The San Francisco 49ers rewarded Christian McCaffrey this week with a two-year extension that’s guaranteed him $24 million and broadened his lead — to an average pay of $19 million annually — as the NFL’s highest-paid running back. They also recently extended receiver Jauan Jennings with a significant pay raise, a two-year deal worth up to $15.4 million.
In summary, the 49ers have distributed substantial sums of money, but they have also created space in the salary cap until 2024. They currently possess more than $32 million of it. Christian McCaffrey, the highest-paid running back in the National Football League, was rewarded this week by the San Francisco 49ers with a two-year contract deal that guarantees him $24 million and raises his salary to an average of $19 million annually. They just extended receiver Jauan Jennings’ contract, giving him a significant salary rise as well—a two-year deal worth up to $15.4 million. This gives them important flexibility.
With an eye on their longer-term plan—which most likely entails even more expenditure on new contracts for receiver Brandon Aiyuk and quarterback Brock Purdy—let us look at how the 49ers worked to make this happen.
The NFL’s yearly increase in the salary limit and the cap space that remains unused from year to year are the two main tenets upon which the 49ers are building their financial plan.
The 49ers have reason to anticipate that salary cap hikes will continue coming in after it was decided to raise it by an astounding $30.6 million from 2023 to 2024 due to soaring league revenue. And it has increased their confidence in postponing cap payments until later, when each dollar recorded will likely account for a smaller portion of the cap than it does now.
Consider it as a loan against the cap with no interest. Pushing hits into the future is free of charge. Good flow control must be established in order to prevent too many cap hits from piling up in any given year’s books and forcing the 49ers into “cap hell,” which is the situation where they must bench talented players in order to be in compliance with the cap.
That is what the 49ers have done so far. Maintaining efficient flow control going forward will be difficult, even if and when transactions for Aiyuk, Purdy, and other players are completed.
For this reason, the 49ers took proactive measures in March, asking fullback Kyle Juszczyk and defensive lineman Arik Armstead to accept contract reductions (Juszczyk did, while Armstead did not and is currently with the Jacksonville Jaguars). For this reason, we should anticipate that the 49ers will keep pressing Aiyuk. The 49ers’ only realistic alternative, considering this team’s extensive list of large spending, appears to be a new contract that is more in line with other receiver agreements rather than the outlying territory the Minnesota Vikings recently awarded Justin Jefferson.
The Jefferson Jump is insane.
Most fully-guaranteed money, WRs…
1. Justin Jefferson: $88.7m
— $36.2m gap —
2. Tyreek Hill: $52.5m
3. A.J. Brown: $51m
4. Calvin Ridley: $47
5. D.J. Moore: $41.6m— David Lombardi (@LombardiHimself) June 3, 2024
Let us return to flow control, though. The 49ers’ big-picture plan is well illustrated by their dealings with McCaffrey and Jennings, and any deal they do with Aiyuk will be based on that.
Here’s a look at McCaffrey’s new contract.
Christian McCaffrey extension breakdown
| Year | BASE | PRTD SB | OPT BON 1 | OPT BON 2 | CAP |
|---|---|---|---|---|---|
| $1.21m | $5m | — | — | $6.7m | |
| $1.255m | $5m | $2.8m | — | $9.8m | |
| $1.3m | $5m | $2.8m | $2.1m | $11.9m | |
| $16.85m | $5m | $2.8m | $2.1m | $27.5m | |
| Void | $2.9m | $2.8m | $2.1m | $14.9m | |
| Void | Void | $2.8m | $2.1m | Void | |
| Void | Void | Void | $2.1m | Void |
The guaranteed basic wage has an orange tint. The 49ers restructured McCaffrey’s prior contract in 2023, so this agreement inherited an existing proration that extends to 2027. Signing bonus prorations are shaded in blue. The extra proration for the first option is indicated in green. The additional proration for the second option is shaded in teal.
Note: McCaffrey has $500,000 in total roster bonus money scheduled for each game from 2024 to 2027 in addition to the statistics above. Additionally, he has $400,000 in total offseason workout bonus money set for 2025 to 2027.
In the trade for McCaffrey in 2022, the 49ers acquired his former deal from the Carolina Panthers, which had $24.2 million left over for the next two seasons. All of it was not assured.
Although they thought the NFL’s offensive player of the year should have guarantees, the 49ers gained advantages by offering them to him. This is due to NFL regulations that allow signing and option bonuses to be prorated over a maximum of five years in relation to the salary cap.
The terms of McCaffrey’s prior contract were strict; his $24.2 million was divided into basic pay over the course of two seasons. Thus, the 49ers gleefully tore up the previous deal and received a guaranteed $24 million through an alternative route. McCaffrey’s base salary was lowered from $2024 to $2026 to the veteran minimum. Additionally, a $14.29 million signing bonus was given to him, and $8.5 million of a $14.245 option bonus that would have been payable in 2026, was guaranteed.
The formula is as follows: $24 million fully guaranteed = $1.21 million basic pay for 2024 + $14.29 million signing bonus + $8.5 million guaranteed option bonus for 2025.
Additionally, the 49ers purchased two additional years of team control (2026 and 2027), using these additional seasons as a means of managing flow.
If McCaffrey is healthy on the roster come April 1st of the following season, the remaining $5.745 million of his $14.245 million 2025 option bonus will become a guaranteed contract. After that, in 2026, he will receive a $10.55 million third option bonus.
By generating three blank years, the 49ers configured all three of McCaffrey’s bonuses to prorate over the whole five-year period against the cap. To visualize the staggered structure that lowers McCaffrey’s cap hits in the short term, imagine it as an accordion that the 49ers have spread out across seven years, as emphasized by the shades of color above.
In fact, by employing this strategy, the 49ers cut McCaffrey’s 2024 cap hit by $7.4 million (to $6.7 million) and his 2025 number by over $5 million (to $9.8 million).
Only once, in the massive contract that the 49ers signed defensive tackle Nick Bosa in 2023, have they utilized the triple-bonus method. McCaffrey’s cap obligations therefore run until 2030 for the time being, but any outstanding balances will become due as soon as the running back leaves the 49ers.
The 49ers were only able to fit in two bonuses because Jennings’ contract is only for two years, but it still employs the same methodology.
Jauan Jennings contract breakdown
| Year | BASE | PRTD SB | OPT BON 1 | OTH BON | CAP |
|---|---|---|---|---|---|
| $1.055m | $1.24m | — | $625k | $2.77m | |
| $1.17m | $1.24m | $1.12m | $625k | $4.26m | |
| Void | $1.24m | $1.12m | — | $8.3m | |
| Void | $1.24m | $1.12m | — | Void | |
| Void | $1.24m | $1.12m | — | Void | |
| Void | Void | $1.12m | — | Void |
Taking into consideration, the tender the 49ers had first offered Jennings, a restricted free agent, stood to make and count $4.9 million under the limit. With this new contract, Jennings’ total guaranteed salary is now $8.4 million, with an additional $3.5 million guaranteed. Additionally, his 2024 cap number is reduced, and the 49ers can retain him at a reasonable price in 2025.
Once more, a rise in fully guaranteed funds is advantageous to both parties.
This is made possible by two factors: the 49ers’ willingness to offer large bonuses and the players’ track record of collecting them.
Naturally, the latter is always going to be at least somewhat of a gamble. Physical deterioration and injuries are unavoidable. However, the 49ers have stated unequivocally that they are prepared to reinvest in individuals they believe will continue to produce at a low cost. They have, for the most part, made the right bets, and as a result, the 49ers have amassed and maintained such a stellar roster with room to spare for additional additions.
In terms of 2024 savings, this season’s overall pool of available salary-cap room is $32 million thanks to the $7.4 million made available by McCaffrey’s extension and the $2.1 million contributed by Jennings’ new contract.
The 49ers are free to spend during the season if they choose to trade for a deal while they try to win a championship this autumn. In 2023, they positioned themselves analogously, rearranging contracts to free up almost $40 million of room prior to the start of the season.
The 49ers were able to attain cap compliance in 2024 by carrying over the majority of that room, even during a year that saw growing prices and deadlines for numerous deferred cap payments.
The team is now set to repeat that cycle.
The 49ers should be able to ride out this wave indefinitely if they maintain their financial discipline and increase the wage cap. This is the appropriate time for tense talks with Aiyuk. And if things continue as they are, Purdy will be at the table in a year.
The 49ers may decide to implement their first quadruple-bonus structure at that point. Additionally, it could signal a shift in the team’s long-term expenditure plans. However, those are all talks to postpone till 2025.
(Top photo of Christian McCaffrey and Brandon Aiyuk: Darren Yamashita / USA Today)
