Outlining Saints' options to re-sign breakout TE Juwan Johnson

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There might not be a more important in-house free agent for the New Orleans Saints than Juwan Johnson, so it’s good to see that the wide receiver-turned-tight end says he’s “waiting to get the deal done” after coming off of a career year. It’s vital that the Saints keep their best player at the position in town for the foreseeable future. He was a rare bright spot in an otherwise forgettable 2022 season.

Johnson posted an impressive line of 42 receptions for 508 yards and 7 touchdown catches in 2022, securing a career-high 64.6% of his targets and playing a big part in the passing game. Johnson’s per-game averages (2.6 receptions and 31.8 yards each week) were modest but so was the passing attack as a whole. He was a frequent highlight when the team got in scoring position. Rookie wideout Chris Olave was the only teammate to run more routes than him last year, and the Saints trusted him as a run blocker in some key situations. He’s made positive progress every year he’s played for New Orleans.

Now he’s a pending free agent with restricted status, which gives the Saints more options in keeping him on the team for 2023. Johnson is probably another year away from his first big NFL payday but it’s in his interest to get some long-term stability and New Orleans would like to sign him on a deal that fits within their complex salary cap accounting. Here are a couple of scenarios and contract projections to consider:

Restricted free agent tenders
There are three tiers to choose from here, each of which gives the Saints at least the right of first refusal should Johnson receive a contract offer from another team. The two higher tiers would bring draft pick compensation to New Orleans if he signs elsewhere but that’s uncommon and often dissuades other teams from getting involved. The catch is that they’re fully-guaranteed. The values, per Over The Cap:

First round compensation: $6,005,000
Second round compensation: $4,304,000
Right of first refusal: $2,627,000

It’s possible to issue the RFA tender and then restructure the payout, since it’s technically all base salary; that’s what the Saints did with Deonte Harty last year to open some in-season salary cap space. But the downside is that, like any restructure, you’re left with the difference in dead money from void years added to the contract for accounting purposes. That can be mitigated by later signing Johnson to an extension when he reaches unrestricted free agency in 2024.

Short-term extension
This is the approach the Saints took with defensive end Carl Granderson a year ago, when he was an exclusive-rights free agent (meaning he could stay on the minimum salary, sign an extension, or not play in the NFL at all). They signed Granderson to a two-year contract that paid him the veteran’s minimum in 2022 and the equivalent of the second-round RFA tender in 2023, with a cap figure of $4.14 million. They also included a void year in 2024 for accounting purposes.

Could they use a similar strategy with Johnson? Bypassing the RFA process and rewarding him with a two-year deal gives him some short-term stability, raises his pay, and sets him up for a big extension in 2025 before his 29th birthday. It also protects the Saints in case he regresses. It’s also likely going to fall beneath what he could seek on the open market.

Here’s our projection for a short-term deal: two years, $13.5 million with a minimum salary of $1.01 million in 2023 and a $6.1 million base salary in 2024, plus a $5 million signing bonus and a $1.39 million roster bonus next year. The 2023 salary and signing bonus are guaranteed, and three void years are tacked on to spread out the salary cap charges — leaving this year’s cap hit at $2.01 million. Johnson initial 2024 cap hit would be $8.49 million but it’s set up to restructure down to about $2.36 million if need be.

Long-term extension
This would be the preferred outcome from Johnson’s side. He gets security of a multiyear deal and a significant pay raise. From the Saints’ perspective, this may be tough to swing with Taysom Hill already earning a double-digit average annual income, and there’s the risk of Johnson having already peaked — though that feels unlikely; better quarterback play and another year of experience should help him reach greater heights in 2023 and beyond.

So why wouldn’t Johnson agree to a long-term contract extension (running three or more years)? His market value might be greater than what the Saints are willing to pay right now, and signing a multiyear deal prematurely could cost him. Free agent tight ends like Dalton Schultz, Evan Engram, and Mike Gesicki are all going to be seeking $10 million or more annually in March. T.J. Hockenson is entering a contract year and he could upend the market with an early extension. Johnson’s asking-price is going to go up as his peers around the league get paid.

So this is going to look silly in the not-so-distant future, but here’s what a long-term deal between Johnson and the Saints could look like: four years and $45.76 million, with $25.76 million in guarantees. That includes a $1.01 million base salary in 2023 and salaries of $9 million from 2024 to 2026, with a $2 million roster bonus in 2025 and a void year in 2017. His salary cap hit this year would be just $4.16 million, which matches the second-round tender value. Next year’s cap hit triples to $12.15 million but it can be restructured to as little as $5.81 million.