CHA-CHING: Several Ravens Cash In!

Over the last couple of weeks, nine (9) Ravens (and maybe 11) have earned some extra cash via incentives and escalators. While these will have no impact on the 2024 Salary Cap, they will impact the 2025 Cap and future Salary Caps as well. These are the cost of doing business and while it will make things trickier in the future for the Ravens, they will gladly deal with this “problem” given the performances of those players and their contributions towards a successful 2024 season.

PERFORMANCE INCENTIVES:

As mentioned on Twitter/X over the last couple of weeks, a bunch of Ravens have recently earned Incentives:

1/ Ravens’ incentives update:

EARNED:
Henry has earned his max of $2M ($500K each for 1200 yds; 1500 yds; 13 TDs & 15TDs).
Van Noy – $500K ($250K each for 7 sacks + 50% PT; 10 sacks). Could earn $250K more each for 12 sacks & 14 sacks.
Mekari – $750K for 90% snaps

— Brian McFarland (@RavensSalaryCap) December 23, 2024

DERRICK HENRY: Henry was the first to cash in back in early November when he scored his 13th TD. That earned him $500K. Over the next couple of weeks, Henry earned an additional $500K for reaching 1,200 rushing yards and another $500K for scoring his 15th rushing TD. When Henry ran for 167 yards against the Pittsburgh Steelers on December 21st, he eclipsed 1,500 rushing yards and earned his final $500K incentive. At that point, Henry had reached the maximum amount of $2M in incentives.

KYLE VAN NOY: Van Noy, as everyone likely saw against the Cleveland Browns, surpassed 12 sacks and earned $750K in incentives ($250K for 50% playing time + 7 sacks; $250K for 10 sacks and $250K for 12 sacks).

MARLON HUMPHREY: By being named to the Pro-Bowl, Humphrey earned a $250K incentive.

PATRICK MEKARI: Mekari as earned “at least” $500K in incentives. Mekari earned $250K each for surpassing 60% playing time (offensive snaps) and 75% playing time. Mekari was entitled to another $250K incentive for reaching 90% playtime, but due to the illness that hit the team last week, Mekari only played one series in the season finale and ended the season with 89.91% playing time. NFL contracts do not round up when it comes to incentives, so Mekari technically did not reach that final $250K incentive. However, in the past, the Ravens have honored incentives when the player barely missed a threshold and Mekari couldn’t be much closer. The guess here is that the Ravens will honor that last $250K incentive.

JUSTICE HILL: Hill missed the last two games due to a concussion in the Pittsburgh game and finished with 42 receptions and 383 receiving yards. Hill would have earned $250K if he had reached either 50 receptions or 500 receiving yards. Had he not been injured Hill would have had a decent shot of surpassing at least one of those thresholds and earning the $250K incentive. It wouldn’t be surprising to see the Ravens pay this one as well.

All of these incentives were categorized as “Not Likely To Be Earned” (NLTBE) Incentives since the player had not reached those statistical thresholds in the prior season, so they did not count on the 2024 Salary Cap. They will however have a dual impact on the 2025 Salary Cap. First, since they were earned, they will count as a negative adjustment on the 2025 Salary Cap. This will obviously lessen the team’s Cap space in 2025. In addition, for those players that have the same incentives in 2026 (all of the above, except Mekari, who is a pending free agent), those players’ Salary Cap numbers will increase by the amount earned in 2024, since those incentives will now be categorized as “Likely To Be Earned” (LTBE) Incentives since the player did achieve those statistical thresholds in the prior season. As such, those incentives will count as part of the players’ Cap number in 2025. If any of those incentives are not met in 2025, the team will receive a credit against the 2026 Salary Cap in the amount of the missed incentives.

PROVEN PERFORMANCE ESCALATOR: The 2011 CBA mandated 4-year contracts for all draft picks, which eliminated a player’s chance to receive the higher paying RFA tender in their 4th year. To offset this, the 2011 CBA implemented the Proven Performance Escalator (PPE), which allows 3rd through 7th round draft picks to receive an upgraded salary that is equivalent to the low RFA tender if the player performed well enough over the first 3 years of his contract. The 2020 CBA added 2nd round picks to this calculation, changed the criteria for earning the PPE and added additional compensation levels. Under the revised rules, meeting playing time thresholds (35%) still will earn the PPE at the low RFA tender level (Level 1 PPE), while more playing time (55%) will earn the low tender plus $250K (Level 2) and reaching the Pro-Bowl (1st ballot only) will be paid at the 2nd Round RFA tender level (Level 3).

This year, the Ravens had 3 players – DT Travis Jones, TE Isaiah Likely and G Daniel Faalele – who reached the Level 1 PPE and will see their 2025 base salaries increase from $1.1M to approximately $3.325M (this amount will be set once the amount of the 2025 Salary Cap is announced). This will increase each of their 2025 Cap numbers by $2.225M.

5TH YEAR OPTION:

Similarly – but on a much larger scale – the 5th Year Option for 1st round draft picks allows a player to receive a much higher 5th year salary if the player performs well over his first three (3) seasons of his rookie deal.

By making his 1st Pro-Bowl, WR Zay Flowers saw his 5th Year Option (2027) increase from the base amount to an amount equal to the 2026 Transition amount. That amount is still to be determined, but it is likely going to be in the $24-25M range. If Flowers reaches the Pro-Bowl again next year, that amount will rise to the 2026 Franchise Tag amount.

While historic for sure (finally!!), this also has an effect on Flowers’ 5th yr option (if it gets that far). Flowers’ 5th yr option in 2027 will now be equal to the 2016 WR Transition tag. Another PB and it will bump up to the 2026 Franchise tag amount. https://t.co/UlmKoSOXbo

— Brian McFarland (@RavensSalaryCap) January 2, 2025

That is exactly what has happened with S Kyle Hamilton and C Tyler Linderbaum. Both have been elected to their second Pro-Bowls this year. As such, their 5th Year Options (2026) will be equal to the 2025 Franchise Tag amount. While that amount also has not yet been finalized, it is estimated that those amounts will be around $20M and $25M respectively.

This is the 2nd PB selection for both Hamilton & Linderbaum. This will push both of their 5th yr options (2026) to the 2025 Franchise tag level. Those would be approx $20M & $25M respectively. Both will be eligible for long-term extensions after Saturday night. https://t.co/A0ZV9ZRPAn

— Brian McFarland (@RavensSalaryCap) January 2, 2025

It will certainly be the Ravens’ intention to not have any of those players reach their 5th Year Options and instead sign them to long-term deals to avoid the 5th Year Option and also secure their services into the future. As of the end of the regular season, both Hamilton and Linderbaum are now eligible for a long-term deal. Flowers will also be eligible after the final game of the 2025 regular season.

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Source: https://russellstreetreport.com/2025/01/09/baltimore-ravens-salary-cap/incentives-earned-ravens-2024/