In an age when giving running backs lucrative, long-term deals is looked down upon, the Tennessee Titans hit a home run with Derrick Henry’s contract extension.
The deal, which was signed just ahead of the deadline on Wednesday, is for four years and $50 million, with $25.5 million guaranteed — and it’s a deal that works out great for both parties.
For Henry, he gets financial security and is guaranteed to make more than the roughly $22.6 million combined he would have made under the franchise tag in 2020 and 2021.
For the Titans, they were able to secure their best player and didn’t have to reset the market to do so. The annual average for Henry’s deal is $12.5 million, ranking him fifth among all running backs.
That’s just about right for a player who is the league’s best pure runner but isn’t an elite dual-threat back.
Tennessee also wins in terms of 2020 cap space. Henry, who was set to make $10.278 million under the franchise tag this coming season, will now account for a $6 million cap hit, saving the Titans over $4 million immediately.
The biggest concern in any deal for a running back is what the later years of the contract look like. Well, the Titans did well there, also.
The deal takes Henry through his age 29 season and ends just after he hits the age of 30. This means the Titans will be able to avoid the pitfalls normally associated with 30-year-old running backs; although if anyone can buck that trend it’s Henry, who keeps himself in phenomenal shape.
Adding to that, the Titans can get out of this contract rather easily after the second year. Henry has a dead cap number of $6 million in 2022 and $3 million in 2023, so there is no long-term risk involved.
When breaking down the numbers, there’s no question the Titans were smart about paying Henry the bag he deserves — and don’t let the haters tell you otherwise.
Grade: A
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