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Alex Smith, Kansas City Chiefs agree to 4-year, $68 million contract extension

Alex Smith had one year remaining on his contract before the 4-year extension.

Denny Medley-USA TODAY Sports

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 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.

Click here for the Alex Smith contract approval poll

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