Terez Paylor of the Kansas City Star has the big scoop: Alex Smith and the Kansas City Chiefs have agreed to a 4-year contract extension worth $68 million. Terez reports the deal has $45 million in guarantees; Pro Football Talk reports it's $30 million guaranteed at signing.
The #Chiefs and Alex Smith have agreed to a four-year, $68M contract extension with $45M in guarantees, a league source tells me.— Terez A. Paylor (@TerezPaylor) August 31, 2014
The Chiefs have confirmed the news.
This comes out to $17 million per year on the extension, right around the numbers folks were talking about. The entire key here is how it's structured. Pro Football Talk reports Smith is guaranteed $30 million at signing and another $15 million in injury guarantees in March 2015.
Prior to this news, the Chiefs had $6.6 million in salary cap space. If this is a 4-year extension on top of his current contract which had one year remaining, this would keep Smith under contract through the 2018 season.
Smith's previous contract was set to pay him $7.5 million this season so if you combine those this contract is really about $75.5 million over five years.
This brings stability to a position where the Chiefs have rarely had stability lately. Smith threw for 23 touchdowns and seven interceptions in his inaugural 11-win season with the Chiefs. Despite the loss, Smith was terrific in the Chiefs playoff game against the Colts.
This is a HUGE development for the Chiefs not just because of Alex Smith but because it also allows the Chiefs to use the franchise tag next year on Justin Houston, who has one year remaining on his contract. From what I understand, those talks are not going well and a deal is not expected any time soon.
Smith's new money is $17M per year. But his full contract is $15M per year over 5 years— Arrowhead Pride (@ArrowheadPride) September 1, 2014
Congrats to Alex Smith— Dwayne Bowe (@DwayneBowe82) September 1, 2014
Huge congrats to my guy AS11!! So well deserved...one of the best teammates I've ever played with!— Chase Daniel (@ChaseDaniel) September 1, 2014
Congrats to my QB!!! Well deserved my friend.— Jeff Allen (@JeffAllen71) September 1, 2014