Chargers, Justin Herbert agree to 5-year $262.5 million contract extension: Source - The Athletic

The Chargers and quarterback Justin Herbert have agreed to a multiyear extension, the team announced Tuesday. Here’s what you need to know:

• The deal is for five years and $262.5 million, a league source told The Athletic. It includes $218 million in guaranteed money, the second-highest total in the NFL behind Deshaun Watson’s $230 million.
• Herbert, the No. 6 pick in the 2020 NFL Draft, has been a highly prolific quarterback since entering the league. He’s thrown for 14,089 yards with 94 touchdowns and 35 interceptions while compiling a 96.2 passer rating.
• Herbert, 25,  joins the Eagles’ Jalen Hurts as the second starting quarterback from the 2020 NFL Draft class to pick up a contract extension this offseason.

QB1 of 1. pic.twitter.com/FHThjfQ05n

— Los Angeles Chargers (@chargers) July 25, 2023

The Athletic’s instant analysis:

What’s the next focus for Chargers, Herbert?

The Chargers always planned on getting an extension done with Herbert at some point this offseason. As coach Brandon Staley said at the league meetings in March, “I’m confident that Justin Herbert is going to be our quarterback for a long time and that we’ll make sure that we get a great deal done.” It was a question of when, not if. And that timing question has now been answered.

The Chargers have their franchise quarterback locked up for the long term, and they quashed this potential looming storyline before the team gets into the thick of training camp. Now, the focus both internally and externally can turn to the more pressing football matters — most notably, what kind of step forward Herbert can take in new offensive coordinator Kellen Moore’s scheme. — Popper

What to make of the contract terms

Herbert’s record-setting contract makes him the highest-paid player in the league on an average-per-year basis, passing Lamar Jackson, who signed a five-year, $260 million contract earlier this offseason. Herbert’s average annual value comes out to $52.5 million per year, and he can earn up to $53 million per year, according to a person familiar with the deal.

Perhaps the most interesting part of the extension is the total guaranteed money. At $218 million in total guarantees, Herbert is second only to Watson, who shook up the quarterback market in 2022 with his fully guaranteed $230 million contract with the Browns. Herbert’s total guarantees far surpass the $185 million in total guarantees Jackson signed for. That is an indication both of how the Chargers value their franchise QB and the level at which Herbert has performed through his three NFL seasons. — Popper

How Herbert stacks up

You would have had a hard time convincing me that three quarterbacks (Hurts, Tua Tagovailoa, Joe Burrow) from the 2020 NFL Draft class would have finished the 2022 season with a higher EPA per dropback (via TruMedia), QBR and passer rating than Herbert. But alas, here we are.

It’s not like Herbert’s numbers last season were poor by any means, though (league rank in parentheses):

• EPA per dropback: 0.04 (16th)
• QBR: 58.2 (13th)
• Passer rating: 93.2 (14th)

Herbert’s EPA per dropback went from 0.17 in 2021 to 0.04 in 2022. And his 2022 passer rating was the lowest of his career. He also went from 38 TDs in 2021 to 25 TDs last season. It didn’t help that Keenan Allen missed seven games and Mike Williams missed four games. It also didn’t help that Herbert dealt with multiple injuries. Now his completion percentage was a career high at 68.2 percent after throwing a career-high 699 passes.

Herbert will, of course, be the Chargers’ franchise quarterback for the foreseeable future and now he’s cashed. But the expectation level will jump now he’s been financially rewarded. — Holder

Required reading

The Football 100, the definitive ranking of the NFL’s best 100 players of all time, goes on sale this fall. Pre-order it here.

(Photo: Kirby Lee / USA Today)

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