The top of the 2024 NFL Draft didn’t offer much suspense as Caleb Williams was -50000 to be the first pick, meaning a $50,000 bet would net $100. The Chicago Bears followed script and selected the USC quarterback, and the Washington Commanders drafted their presumed top target, LSU QB Jayden Daniels, with the second pick.
Offense ruled the night with a record 23 offensive players, though no running backs, picked among the 32 selections, including a record-tying six quarterbacks. One of those was Michael Penix Jr. by the Atlanta Falcons at No. 8, which caused confusion since the club just signed veteran QB Kirk Cousins to a four-year, $180 million contract. The first defensive player selected was edge rusher Laiatu Latu at No. 15 by the Indianapolis Colts.
Williams is in line for a four-year contract worth $39.5 million, including a $25.5 million signing bonus. The signing bonus is up 3.8%, marking the first uptick of more than 1% in rookie bonuses since the 2020 NFL Draft.
Contracts for draft picks are predetermined by a formula that is typically tied to the NFL salary cap. But the cap declined 8% in 2021—the first decline since 2011—following a $4 billion revenue drop in 2020 when games were held under COVID-induced stadium capacity restrictions. The league and players union agreed to amend the usual rookie salary formula to not penalize the 2021 draft class.
The compromise was to “borrow money” against future rookie compensation pools to prevent a decline in rookie contracts. The result was 1% increases in draft pick signing bonuses—the bulk of first-round player contracts—even if the cap was down. The system stayed in place in 2022 when the cap rose 14%, and again in 2023 when the cap jumped 8%.
The 2024 NFL salary cap is $255.4 million per team, a record $30 million increase over the previous year. The increase is a result of new media deals, as well as the “full repayment of all amounts advanced by the clubs and deferred by the players during the COVID pandemic.”
Williams is the rare NFL player to not have a traditional agent, as his father, Carl, is taking the lead on negotiations. It will save the 2022 Heisman Trophy winner roughly $1 million in agent fees, and the contract has almost zero wiggle room, based on the NFL’s collective bargaining agreement.
The current rookie salary slot system was put in place in 2011. Before that, agents and teams could haggle over contracts that soared past what top veteran players earned. The 2009 top pick, Matthew Stafford, signed for $72 million over six years with the Detroit Lions, while Sam Bradford got $78 million with the then-St. Louis Rams the following year. Cam Newton, the 2011 No. 1 pick, signed for $22 million over four years with the Panthers.
The 32 first-round picks this year are projected to sign contracts worth a total of $640 million, including $364 million in signing bonuses. The minimum base salary for a rookie will be $795,000 in 2024, up from $750,000 the prior year.
The first-round picks all receive four-year deals, with a fifth-year team option.Twenty of the 32 picks in the 2020 draft had their options picked up, with second overall pick Chase Young the highest to not have his option exercised with the Commanders.
The draft resumes Friday night with the second and third rounds.
(This story has been corrected in the second paragraph to note that Michael Penix Jr. was selected by the Atlanta Falcons with the eighth pick.)
