The Miami Dolphins just gave star wide reliever Jaylen Waddle a three-year, $84.75 million contract extension that will keep the star 25-year-old in South Beach for a while. Wrapping up a top player is good for the team and getting the bag is good for the player but deals like this always have other aspects and ramifications to consider. So, let’s go ahead and grade the Dolphins’ Waddle extension.
What to know about the Jaylen Waddle contract extension
The Dolphins gave Jaylen Waddle a three-year, $84,750,000 contract extension that includes a $18,873,000 signing bonus, $76,000,000 guaranteed, and an average annual value (AAV) of $28,250,000, per Spotrac.
As with all NFL contracts, though, the reported details aren’t the whole story.
As a first-round pick in 2021, Waddle was entering the last guaranteed season of his rookie contract, and the Dolphins have picked up his fifth-year option for 2025. So, this three-year extension doesn’t officially kick in until 2026 and runs through 2028.
This is also a team-friendly deal that allows the Dolphins to get out of it before it even really kicks in with minimal damage to their cap. While Waddle’s dead cap hit is over $40 and $31 million the next two seasons, respectively, his dead cap hits in 2026-28 are just $11.3, $7.5, and $3.7 million. That means if the team wants to cut or trade him at any point in those three years, they will save around $10, $20, or $27 million when they do it.
That said, Waddle is just 25, so expecting him to play at a high level until he’s 29 or 30 isn’t a huge stretch.
As for what the player gets, Waddle is likely to see at least $77.3 million out of this extension and gets an immediate $19.9 million more in this season’s paychecks.
This also officially puts the name Jaylen Waddle among the highest-paid wide receivers in the NFL by any definition.
Now Waddle, with an AAV of $28.25 million, is now the fourth highest-paid WR by AAV behind only A.J. Brown ($32M), Amon-Ra St. Brown ($30.002M), and his Dolphins teammate (Tyreek Hill, $30M). And his $76 million guaranteed is third all-time only behind A.J. Brown ($84M) and Amon-Ra St. Brown ($77M).
Grading the Dolphins’ Waddle deal
Overall, this is a solid deal for both the team and the player. The Dolphins lock up a young star and Jaylen Waddle becomes one of the highest-paid players in the league. Win-win.
That said, there are a few things to consider here.
First, it is worth noting that Miami now has the highest-paid WR duo in the league, paying a total of $58.25 per year to Tyreek Hill and Waddle. That eclipses A.J. Brown and DeVonta Smith, who are making a combined $57 million per.
Building NFL teams is all about choices, and choosing to pay two WRs that much money could be a dicey proposition, especially when their quarterback, Tua Tagovailoa, is entering the final season of his own contract.
If the Dolphins want to keep Tua in town beyond 2024, they are going to have to, at worst, franchise the QB, which will likely cost them around $40 million come next offseason. If they want to sign him long-term, that will likely cost north of $50 million after the deals that players like Joe Burrow, Jared Goff, and Justin Herbert recently signed, and that Dak Prescott likely will sign soon.
If three players are making over $100 million on a $260 or so million salary cap, that only leaves so much room for offensive linemen or defenders.
There’s also a chance that the number the Dolphins are paying to Hill, Waddle, and eventually, Tua will go up dramatically if Hill gets the new contract extension he is looking for. Once the highest-paid WR in the league, he’s now been surpassed by the two Browns, and once Justin Jefferson gets his (likely) history-making extension Hill will fall even further down the list.
And lastly, while this may not matter to Waddle right now (or ever), the Dolphins just told him that he is their No. 2 guy. The young wideout just got more money than 10 of us put together will see in our lifetimes, but in pro sports athletes often keep score based on contract figures. With the new salary structure on the Dolphins moving forward, the score is clear.
The scoreboard here says Tyeek Hill 30, Jaylen Waddle 28.
In a vacuum, this is an excellent deal all around that accomplishes what both sides want. That said, it also puts the Dolphins officially on the clock regarding some incredibly difficult decisions about Hill, Tagovailoa, and team building in general, which is why it falls just short of getting an A.
Grade: B+
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