Chris Olave's contract extension talks with the New Orleans Saints might have slipped under the radar amid the free agency frenzy, but they're still a hot topic in the Big Easy. Olave is a key target for second-year quarterback Tyler Shough, making him a crucial piece of the Saints' offensive puzzle.
However, his past injuries, especially the concussions that sidelined him for half a season, are a concern for the team. On the flip side, Olave's durability last season, where he handled a career-high 156 targets, strengthens his case for a solid deal.
Finding common ground is the challenge. Olave might push for guaranteed salaries in his second and third years once the ink dries.
Meanwhile, the Saints could be cautious, perhaps guaranteeing only the second year's salary at signing, with conditions for the third. Olave could counter with an injury guarantee that ensures payment even if he fails a physical.
While agreeing on the total numbers is straightforward, these intricate details can stall negotiations. Picking up Olave's fifth-year option for 2026 gives the Saints some breathing room.
Consider a scenario where Olave signs a deal similar to Alec Pierce's with the Colts: four years, $114 million, a $26 million signing bonus, and the first two years' salary guaranteed ($32 million). But Olave's situation differs slightly due to his fifth-year option.
This is where potential savings come into play. By reducing his 2025 base salary from $15.49 million to the veteran minimum of $1.21 million and converting the difference into a signing bonus, the Saints could create a more manageable cap situation.
Here’s how it could break down:
- 2026 cap hit: $6,415,000 ($1,215,000 base salary + $5,200,000 signing bonus proration)
- 2027 cap hit: $35,200,000 ($30,000,000 base salary + $5,200,000 signing bonus proration)
- 2028 cap hit: $32,200,000 ($27,000,000 base salary + $5,200,000 signing bonus proration)
- 2029 cap hit: $32,200,000 ($25,000,000 base salary + $5,200,000 signing bonus proration + $2 million roster bonus)
- 2030: Contract voids, leaving $5,200,000 in dead money
The Saints could tweak this structure, perhaps by avoiding a void year, as they did with David Edwards and Travis Etienne Jr. They might offer Olave a higher first-year base salary, which was the case with Etienne, who received $2 million instead of the minimum. Olave's camp might aim even higher than Pierce’s deal, possibly eyeing Garrett Wilson’s $130 million contract with the Jets.
If the Saints manage to lower Olave's cap hit from $15,493,000 to a more favorable number, freeing up over $9 million, it’s a strategic win. This move would align perfectly with their need to sign their rookie class, which requires about $7.6 million, assuming no trades.
With around $13.29 million in cap space, extending Olave while creating cap flexibility is a savvy play. But, as always, the execution is where the complexity lies.