The longest holdout since the 2020 NFL collective bargaining agreement increased the penalties for players under contract withholding services came to an end on Oct. 20. The New York Jets and edge rusher Haason Reddick reached an agreement on a revised contract. The $5,341,628 of performance bonuses added to Reddick's contract was enough for him to return to the Jets after a 90-day holdout. Scheduled to make $14.25 million in base salary for 2024, Reddick will earn the remaining $8,708,333 over the 11 weeks left in the regular season.
Reddick had been seeking a new contract from the Jets, who obtained him from the Philadelphia Eagles at the beginning of April for a conditional 2026 third-round pick. With Reddick taking at least 67.5% of New York's defensive snaps and having double-digit sacks, the Eagles will get a 2026 second-round pick instead. Reaching the required playtime threshold for the elevated draft choice is practically impossible, considering Reddick has missed seven games of the season.
Reddick's dissatisfaction with the three-year, $45 million contract (worth up to $46.5 million through incentives and salary escalators) he received from the Eagles during 2022 free agency was well-known when the Jets acquired him. The Jets were under the impression that Reddick would show up for the three-day mandatory June minicamp, which led to a $101,716 fine for his absence. A $250,000 bonus was forfeited because of lack of participation in the offseason workout program.
When Reddick didn't show up for the start of training camp, the Jets were insistent that he end his holdout before discussing his contract. Reddick was adamant about staying away from the Jets until his contract was addressed. The Jets quickly dismissed the trade request Reddick made during training camp.
The stalemate took an unexpected turn a couple of weeks ago when CAA Sports dropped Reddick as a client after he reportedly refused to accept the reworked one-year deal they negotiated during the early part of the season. Reddick quickly hired Drew Rosenhaus after the split from CAA.
The Jets gave Rosenhaus permission to seek a trade for a 48-hour window last week. The inability to broker a trade, as well as Jets owner Woody Johnson reportedly taking a more hands-on approach in the dispute, were catalysts to finding a resolution. Rosenhaus indicated that discussions about a long-term deal will continue.
The compromise the Kansas City Chiefs made with All-Pro defensive tackle Chris Jones last year to end his 51-day holdout one week into the regular season after reaching an impasse on a contract extension was seemingly a blueprint for a resolution with Reddick.
Modifications were made to Jones' remaining 2023 contract year with dummy/voiding 2024 through 2027 contract years being inserted into his deal. Jones' existing $1.25 million sack incentive was made part of the $5.5 million of new performance bonuses that were added as an option bonus escalator to pick up a dummy/voiding 2028 contract year.
It was done this way because the $6.75 million would have been classified as likely to be earned incentives no matter how hard or difficult to achieve since the renegotiation took place during the regular season. As an option bonus escalator, the $6.75 million was prorated at $1.35 million annually 2023 through 2027.
Reddick's $5,341,628 of performance bonuses are also an option bonus escalator for the same reason. The escalator gives Reddick the opportunity to earn a total $14,050,061, which is nearly as much as his scheduled $14.25 million base salary.
Technically, a $100 payment is required between the first day (Feb. 10, 2025) and seventh day following Super Bowl LIX (Feb. 16, 2025) to pick up a 2028 contract year voiding on the 10th day of the 2025 waiver period, which is next Feb. 19. Reddick's 2024 base salary has been reduced by a corresponding amount because of this payment. Contract years 2025 through 2027, with that same voiding date, were included in Reddick's original deal with the Eagles.
The $100 payment (i.e.; option bonus) escalates by $500,000 if Reddick is selected to the Pro Bowl on the original ballot. The option bonus increases by $791,628 with Reddick having at least 40% defensive playtime over the last 11 weeks of the regular season, while $2.05 million of the escalator is based on Reddick's 2024 sack total. It's $500,000 for reaching eight sacks. A ninth and 10th sack are each worth an additional $500,000. The entire $2.05 million is for hitting 12 sacks. The option bonus goes up with another $2 million if the Jets play in the Super Bowl and Reddick is active for the game. There's a provision designed to force the Jets to exercise the option, just like Jones had with the Chiefs.
The $5,341,728 is being prorated at $1,068,345 for 2024 through 2027. The proration for 2028 is $1,068,348. The salary cap charges for the option bonus will be adjusted based on Reddick's 2024 performance. For example, if Reddick only earns the $791,628 because of his playtime, the Jets will get a $910,000 2024 salary cap credit. There will also be a $910,000 bonus proration reduction for the 2025 through 2028 contract years, leaving the Jets with a $633,383 2025 cap charge once voiding occurs.
Reddick's holdout has been an expensive proposition. Each of the seven weeks of the regular season Reddick missed have cost him 1/18th of his $14.25 million base salary ($791,667 per week) totaling $5,541,667.
Reddick was fined $50,000 for each of the 41 days training camp he missed to total $2.05 million. The additional penalty of one week's base salary (1/18th of salary) for every preseason game missed with players signing contracts as unrestricted free agents is in dispute. Reddick was a UFA when he signed in 2022 to join the Eagles. During the middle of March, Reddick's $1 million third day of the league year roster bonus (March 15) was moved to March 30 to help facilitate a trade as the Eagles weren't going to extend his contract. The $1.255 million base salary in Reddick's dummy/voiding 2025 contract year was increased to $50 million matching the base salary that was already listed for his fake 2026 and 2027 contract years.
The NFLPA filed a grievance over the $2.375 million the Jets fined Reddick for the three preseason games he missed. As a player on a veteran contract, fines for holding out of training camp are mandatory and can't be reduced or waived. The NFLPA's contention is the base salary penalty no longer applies to Reddick because the March contract maneuver was a renegotiation of his original Eagles deal. It remains to be seen how an arbitrator will rule on the grievance.
The trade gave the Jets all rights provided to the Eagles under Reddick's contract. A team can recover a portion of a player's signing bonus when a player withholds services, which is different from a fine. Exercising these rights is at the discretion of a team.
Recovery of signing bonus is based on the $2.743 million of 2024 proration from the $13.715 million signing bonus in the original deal. The Jets exercising these rights to the fullest extent means $685,750 or 25% of the $2.743 million in 2024 bonus proration can be recouped for Reddick missing all of training camp. Recoupment increased by another 25% or $685,750 once Reddick missed a regular-season game. It's became an additional 1/18th of the prorated amount of signing bonus for each week his holdout extended beyond the fourth week of the season for $457,167 with the three extra weeks.
The maximum Reddick can lose because of his holdout is $12,146,510. The breakdown is as follows:
- $5,541,667: 7 weeks worth of base salary
- $2,375,000: 3 missed preseason games fine
- $2,050,000: fines for missing 41 days of training camp
- $1,828,667: signing bonus recoupment
- $250,000: unearned workout bonus
- $101,176: June minicamp fine
A favorable ruling on the grievance ($2.375 million), the Jets waiving the minicamp fine ($101,176) and not pursing signing bonus recovery ($1,828,667) would decrease Reddick's exposure by $4,304,843.
Reddick isn't going to earn the entire option bonus escalator. Reddick's reasonable best-case scenario is making $1,291,628 of the $5,341,628 in performance bonuses. He has the best chance to hit the playtime threshold barring injury. It's conceivable that Reddick could reach the lower parts of the sack escalation, considering he has 50.5 sacks in the 66 games he played over the last four seasons (2020 through 2023). Making the Pro Bowl won't be easy because of Reddick's abbreviated season. The Jets aren't serious Super Bowl contenders. Getting the playoffs for the first time since the 2010 season will be an accomplishment after the 2-5 start.
Reddick making $9,999,961 between his base salary and the escalator is his reasonable best-case scenario. With everything else going Reddick's way, the only penalty from the Jets would be the $2.05 million in fines for missing training camp that are mandatory. At best, Reddick can reasonably expect $7,949,961 from playing football this season.
Reddick taking his holdout into the regular season was ill-conceived from the start. Financially, he would have been much better off coming to training camp to satisfy the Jets' condition for negotiations and trying to get a new deal after reporting. His worst-case scenario would have been playing this season for $14.25 million before hitting the open market next March. It's hard to imagine players in the future having difficult negotiations for a new deal or at a contract impasse following in Reddick's footsteps given the outcome.
