Overview of Tyreek Hill’s Contract.
Tyreek Hill, the star wide receiver for the Miami Dolphins, recently restructured his contract, significantly increasing his earnings over the next few years. The new deal reflects his value as one of the top players in the NFL, especially following his impressive performances.
Details of the New Contract.
Contract Structure.
- Total Value: The revised contract is worth $90 million over three years.
- Guaranteed Money: Hill’s deal includes $65 million in guaranteed funds, raising his total guaranteed money to $106.5 million across the four years of his contract, which is a record for a wide receiver without adding extra years.
Breakdown of Compensation.
The specifics of Hill’s new contract are as follows:
- Signing Bonus: $7 million
- 2024 Roster Bonus: $17.04 million (fully guaranteed)
- 2024 Base Salary: $1.21 million (fully guaranteed)
- 2024 Per-Game Roster Bonus: $1 million (fully guaranteed but must be earned)
- 2025 Option Bonus: $15.85 million (fully guaranteed)
- 2025 Base Salary: $10 million (fully guaranteed)
- 2025 Per-Game Roster Bonus: $1.8 million (fully guaranteed but must be earned)
- 2026 Base Salary: $29.9 million (not fully guaranteed at signing)
- 2026 Offseason Roster Bonus: $5 million (due on the third day of the 2026 league year)
- Incentives: Up to $500,000 for playoff performance1.
Financial Implications.
The restructuring has effectively increased Hill’s compensation by $11.4 million over the next two years compared to his previous contract terms. This change also reduces his potential earnings in 2026 from $45 million to $36 million, allowing the Dolphins flexibility in future salary cap management1.
Historical Context.
Previous Contracts.
Hill initially signed a four-year, $120 million extension with the Dolphins in 2022 after being traded from the Kansas City Chiefs. This contract included significant guarantees and made him one of the highest-paid receivers at that time. His previous deal set a benchmark in terms of average annual salary and total guarantees, but market dynamics and player performances have necessitated this recent revision.
Performance Impact.
In the 2023 season, Hill showcased exceptional talent, leading the NFL with 1,799 receiving yards and scoring 13 touchdowns, earning him first-team All-Pro honors for the fifth time in his career. His consistent performance has justified the financial adjustments made by the Dolphins. I wrote another article about >>>> Tyreek Hill’s Total Touchdowns: A Career Overview.
How does Tyreek Hill’s new contract compare to other top receivers.
Tyreek Hill’s restructured contract, valued at $90 million over three years with $65 million guaranteed, positions him among the highest-paid wide receivers in the NFL. While his average annual salary of $30 million ranks him fourth in the league, it reflects a significant financial landscape where contracts for elite receivers have escalated.
For context, Justin Jefferson recently signed a record-breaking deal worth $140 million, making him the highest-paid receiver, followed by A.J. Brown at $96 million and Amon-Ra St. Brown at $120 million. Hill’s contract not only solidifies his status as one of the top earners but also highlights the competitive nature of the market for premier talent.
Furthermore, his total of $106.5 million in fully guaranteed money is unprecedented for a receiver without extending the length of his deal, showcasing how teams are increasingly willing to invest heavily in their star players to maintain performance levels and team competitiveness.
What were the main reasons for the contract restructuring.
The primary catalyst for Tyreek Hill’s contract restructuring was his exceptional performance since joining the Miami Dolphins in 2022. After leading the NFL in receiving yards with 1,799 and scoring 13 touchdowns last season, Hill established himself as an indispensable asset to the team’s offensive strategy.
His request for a review of his contract was motivated by a desire to align his compensation with his performance and market trends, especially given that he had previously been among the highest-paid receivers when he first signed with Miami. The Dolphins’ front office recognized Hill’s contributions and responded positively to his request, demonstrating their commitment to retaining top talent.
Additionally, with other key players like quarterback Tua Tagovailoa and fellow receiver Jaylen Waddle also receiving lucrative extensions, restructuring Hill’s contract was part of a broader strategy to ensure that Miami remains competitive while rewarding its star players appropriately.
How does the guaranteed money in Tyreek Hill’s contract impact the Dolphins’ salary cap.
The guaranteed money in Tyreek Hill’s contract has significant implications for the Miami Dolphins’ salary cap management. With $65 million guaranteed over three years, this amount will count against the Dolphins’ salary cap as they allocate resources for other players on their roster.
In 2024 alone, Hill’s cap hit is projected to be approximately $31.98 million, which constitutes about 12.48% of the total salary cap for that year. This substantial percentage indicates that while Hill is being compensated as one of the league’s elite receivers, it also constrains Miami’s financial flexibility in terms of acquiring new talent or extending contracts for other players.
The Dolphins will need to navigate their cap space carefully to balance Hill’s high earnings with their overall team-building strategy. Additionally, with options for future years remaining flexible—such as potential adjustments or extensions—Miami can manage its long-term financial commitments while maximizing its competitive window.
What are the incentives tied to playing time in Tyreek Hill’s contract.
Tyreek Hill’s restructured contract includes specific incentives tied to his playing time and performance during games. Notably, there is an incentive of up to $500,000 available for achieving more than 50% playing time in a playoff game and securing a playoff win.
This structure not only rewards Hill for contributing significantly during critical moments but also aligns his financial incentives with team success. Furthermore, his contract stipulates that he will incur financial penalties if he misses games; specifically, he loses approximately $58,823 per game missed in 2024 and around $105,882 per game missed in 2025.
These performance-based incentives serve dual purposes: they encourage Hill to maintain peak physical condition and availability while also providing a mechanism for the Dolphins to manage their financial exposure based on player performance and health throughout the season.
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