With Pittsburgh Steelers DT Cameron Heyward now looking for a contract extension this offseason, I am curious to see if any new deal he might ultimately sign this summer winds up somewhat similar in structure to the deals that S Troy Polamalu and TE Heath Miller signed back in March 2014. At that time, Polamalu and Miller were entering the final years of their current contracts with the former nearing his 33rd birthday and the latter 31 years old.
In early 2014, Polamalu was set to earn $8.25 million for that upcoming season with a scheduled salary cap charge of $10,887,500. Additionally, Polamalu had a new money average of $9,866,667 ahead of him signing his extension. In March of 2014, Polamalu agreed to a two-year, $11.75 million contract extension that included no new money for that upcoming season and no fully guaranteed money in the two additional years.
As part of that Polamalu contract extension, $6.75 million of the $8.25 million base salary that he was scheduled to earn in 2014 was turned into a signing bonus and prorated out over three years. In short, Polamalu received the $8.75 million that was already due to him, yet his 2014 salary cap charge decreased by $4.5 million, down to $6,387,500. The byproduct of that extension also decreased Polamalu’s new money average down to $5.875 million.
Polamalu, if you remember, didn’t play past the 2014 season. That resulted in the Steelers eating $4.5 million of that bonus proration as dead money against their 2015 salary cap. In essence, Polamalu’s two-year contract extension that he signed in March of 2014 was nothing but a glorified restructuring.
In Miller’s case, in early 2014 he was scheduled to earn a base salary of $6.02 million for that upcoming season with a scheduled salary cap charge of $9,466,500. Additionally, Miller had a new money average of $6.75 million ahead of him signing his extension. In March of 2014, Miller agreed to a two-year, $8 million contract extension that included no new money for that upcoming season and no fully guaranteed money in the two additional years.
As part of that Miller contract extension a decade ago, $5 million of the $6.02 million base salary he was scheduled to earn in 2014 was turned into a signing bonus and prorated out over three years. In short, Miller received the $6.02 million that was already due to him, yet his 2014 salary cap charge decreased by $3,333,334, down to $6,133,166. The byproduct of that extension also decreased Miller’s new money average down to $4 million.
Miller played through the 2015 season and retired in 2016. That resulted in the Steelers having a 2016 dead money charge of $3,181,668 on Miller. That was a byproduct of not only the two-year-extension he signed in 2014 but also a restructuring of his 2015 base salary ahead of that season.
Now, it’s important to remember that the Steelers were seriously strapped for salary cap space in March of 2014. Being able to lower Polamalu and Miller’s respective charges via no-new-money-in-2014 contract extensions was huge. In short, Polamalu and Miller did the Steelers huge solids in March of 2014 and they both even had their new money averages lowered in the process. All without any fully guaranteed money in the two additional years.
So, let’s now circle back to Heyward’s current situation.
Right now, Heyward is scheduled to earn a base salary in 2024 of $16 million, and his salary cap charge is set to be $22,406,250. If he were to accept a no new-money-in-2024 contract extension, that would likely result in him receiving a huge chunk of the $16 million due to him in the form of a signing bonus. That signing bonus amount could be as much as $14.79 million, and if only two additional years were added on, Heyward’s 2024 salary cap charge would drop $9.87 million, down to $12,536,250.
Now, Heyward’s current new money average is $16.4 million. In order for him to at least retain that, his total earnings for 2025 and 2026 would need to be $32.8 million, or basically $16.4 million per season. Anything lower than that $32.8 million over the two additional years would result in his new money average dropping, just like what happened with Polamalu and Miller in 2014. Additionally, if Heyward’s extension followed the same suit as Polamalu’s and Miller’s both did in 2014, none of his new money past 2024 would be fully guaranteed.
Would Heyward be interested in such an extension? It’s obviously hard to say for sure, especially a deal like that not really offering him any real and hard guarantees past the 2024 season. The Steelers could still cut him or ask him to retire in 2025. However, they would be on the hook for a nice chunk of dead money in 2025 if 2024 wound up being Heyward’s last season in Pittsburgh. So, there is a little motivation on the Steelers side in hoping Heyward is worth whatever cash he would be due, at least the following season.
Depending on how much salary cap space the Steelers want to clear as part of such an extension for Heyward, they wouldn’t necessarily need to turn all but $1.21 million of his $16 million base salary into a signing bonus. For example, the Steelers could convert just $12 million of that $16 million that Heyward is due in 2024 into a signing bonus and still lower his cap charge by $8 million. That, in turn, would lower potential dead money past 2024 in the process.
I certainly don’t know how it will play out for Heyward this summer, but with that, I wouldn’t be totally surprised if an extension that he might ultimately sign winds up following the same path of the ones that Polamalu and Miller both signed back in 2014. Especially given that Heyward is now 35 years old. Regardless of what an extension looks like for Heyward this summer, it will be fun to examine when the ink finally dries.
