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All of the buzz about Chris Olave's big contract extension has died down in the weeks since free agency took over the NFL, but the New Orleans Saints are still plugging away at it. It's easy to see why. Both sides know Olave is a valuable weapon for second-year quarterback Tyler Shough to lean on. But from the team's perspective, Olave also has an injury history to be wary of. He's only a year removed from concussions sidelining him for half the season. From Olave's point of view, he's proven he can stay on the field while handling a career-high 156 targets.
Compromise lies somewhere in the middle. Maybe Olave wants his second- and third-year base salaries guaranteed once he puts pen to paper. Maybe the Saints only want to guarantee his salary in Year 2 at signing, with a trigger date guaranteeing his Year 3 salary to account for injury. Maybe Olave counters by asking for an injury guarantee that pays him even if he can't pass a physical. It's easy for two sides to agree on raw numbers. This kind of detail is what bogs things down. The Saints picking up Olave's fifth-year option for 2026 bought them some time.
Let's say Olave signs the exact same contract the Indianapolis Colts just gave franchise-tagged wide receiver Alec Pierce: four years, $114 million with a $26 million signing bonus and the first two years' salary guaranteed (another $32 million). But Olave is in a slightly different situation with his fifth-year option. That's where potential savings come into play. We'll reduce his 2025 base salary from the $15.49 million he's owed to the veteran minimum (Olave qualifies for $1.21 million) and pay the difference as part of his new signing bonus. You still with us? Here's what that would look like:
Of course the Saints could structure it differently. They could avoid using that void year just like they did with free agent pickups David Edwards and Travis Etienne Jr. They could offer Olave a higher first-year base salary (which they did with Etienne, too, paying him $2 million rather than the minimum $1,215,000). From Olave's camp, he could be aiming higher than what the Colts paid Pierce, too. Any number of things could result in a higher 2026 salary cap hit than what we've projected. He could be targeting the $130 million his college teammate Garrett Wilson got from the New York Jets last year.
But if the Saints can lower Olave's salary cap hit from $15,493,000 to our ballpark number and save over $9 million, right on time to sign their rookie draft class? That's just good business. They'll need almost $7.6 million to sign their draft picks, and that's if they don't make any trades. With an estimated $13.29 million in cap space, extending Olave and freeing up cap space in one go looks like a smart decision. That doesn't mean it's a simple one.
This article originally appeared on Saints Wire: Chris Olave extension: How Saints could save cap space with extension
Continue reading...
Compromise lies somewhere in the middle. Maybe Olave wants his second- and third-year base salaries guaranteed once he puts pen to paper. Maybe the Saints only want to guarantee his salary in Year 2 at signing, with a trigger date guaranteeing his Year 3 salary to account for injury. Maybe Olave counters by asking for an injury guarantee that pays him even if he can't pass a physical. It's easy for two sides to agree on raw numbers. This kind of detail is what bogs things down. The Saints picking up Olave's fifth-year option for 2026 bought them some time.
Let's say Olave signs the exact same contract the Indianapolis Colts just gave franchise-tagged wide receiver Alec Pierce: four years, $114 million with a $26 million signing bonus and the first two years' salary guaranteed (another $32 million). But Olave is in a slightly different situation with his fifth-year option. That's where potential savings come into play. We'll reduce his 2025 base salary from the $15.49 million he's owed to the veteran minimum (Olave qualifies for $1.21 million) and pay the difference as part of his new signing bonus. You still with us? Here's what that would look like:
- 2026 salary cap hit: $6,415,000 ($1,215,000 base salary and $5,200,000 signing bonus proration)
- 2027 salary cap hit: $35,200,000 ($30,000,000 base salary and $5,200,000 signing bonus proration)
- 2028 salary cap hit: $32,200,000 ($27,000,000 base salary and $5,200,000 signing bonus proration)
- 2029 salary cap hit: $32,200,000 ($25,000,000 base salary, $5,200,000 signing bonus proration, and $2 million roster bonus)
- 2030 contract voids, leaving behind $5,200,000 in dead money (signing bonus proration)
Of course the Saints could structure it differently. They could avoid using that void year just like they did with free agent pickups David Edwards and Travis Etienne Jr. They could offer Olave a higher first-year base salary (which they did with Etienne, too, paying him $2 million rather than the minimum $1,215,000). From Olave's camp, he could be aiming higher than what the Colts paid Pierce, too. Any number of things could result in a higher 2026 salary cap hit than what we've projected. He could be targeting the $130 million his college teammate Garrett Wilson got from the New York Jets last year.
But if the Saints can lower Olave's salary cap hit from $15,493,000 to our ballpark number and save over $9 million, right on time to sign their rookie draft class? That's just good business. They'll need almost $7.6 million to sign their draft picks, and that's if they don't make any trades. With an estimated $13.29 million in cap space, extending Olave and freeing up cap space in one go looks like a smart decision. That doesn't mean it's a simple one.
This article originally appeared on Saints Wire: Chris Olave extension: How Saints could save cap space with extension
Continue reading...
