Derek Carr is now the NFL's highest paid player. The Raiders quarterback agreed on terms of a five-year, $125 million contract extension on Thursday morning, keeping the franchise's public face in silver and black through the 2022 season.
Carr confirmed the agreement on Twitter early Thursday.
"Now it's done!" Carr wrote. "From the jump I've wanted to be a Raider 4 life. One step closer to that! Blessed!!! Business done! Let's just play now!!!"
Carr was set to make a $977,515 base salary in 2017, the final year of his rookie contract. Carr's raise is significant, and underscores his value to the franchise. Carr's $125 million extension includes $70 million in guaranteed money, with $40 million guaranteed at signing, according to USA Today.
Carr's deal resets the quarterback market, with an annual value above Andrew Luck's previous record extension. The Colts quarterback signed a five-year, $122.9 million extension, which Carr has now exceeded.
The extact contract structure is not yet known, but a somewhat non-traditional structure is expected due to two key factors. The largest is Carr's desire to see other star Raiders receive extensions, and his deal gives the team some flexibility to keep important players in house. The Raiders will also move to Las Vegas by 2020 at the latest, where there is no state tax. California residents max out at a 13.3-percent tax rate, and his deal could take advantage of that disparity somewhat down the road.
The 26-year old's ultimate goal was to maximize earnings without handcuffing the organization, and that's setting up well. His deal will help in that regard, but the Raiders have also budgeted to extend several members of their young core. They have financial flexibility in future seasons and upfront salary cap space, though productive drafts are required to remain competitive as the cash gets gobbled by Carr and others in coming years.
The Raiders were always confident the Carr extension would get done this offseason, and the deal was finalized well before the quarterback's self-imposed training camp deadline. Carr's camp had discussed parameters of an extension months ago, but talks heated up in the last few weeks and ended up with an agreement that locks Carr down.
The Raiders also hope to extend two more members of a star-studded 2014 draft class. Right guard Gabe Jackson is next in line, and could get a new deal this offseason and edge rusher Khalil Mack will get a massive contract at some point in the near future. Jackson's entering a contract year, but the team exercised a fifth-year option that creates more time to get a Mack deal done. Amari Cooper has some time under his rookie deal -- it could last through the 2019 season -- but the Raiders want to pair him with Carr for several seasons.