Aaron Rodgers' new contract is complete.
NFL Network's Ian Rapoport and Tom Pelissero reported Tuesday that Rodgers' new extension is official and signed, per sources informed of the situation. The team later officially announced the signing.
When Rodgers decided to return to Green Bay last week, the decision came with a new four-year contract extension set to make the back-to-back MVP the highest-paid player in the NFL on a per-year basis.
After a week of back-and-forth with the Packers on the exact structure, Rodgers will make an average of $50 million per year over the first three years of the contract. Rapoport added that the deal includes two placeholders on the back end for cap purposes that could be redone at that point.
"We are very pleased to be able to come to an agreement with Aaron that keeps him in Green Bay," Packers general manager Brian Gutekunst said in a statement. "His play on the field and leadership in our locker room remain vital in our pursuit of another Super Bowl title. The agreement also allows us to maintain and enhance what we feel is already a very competitive roster."
Rodgers was set to earn a base salary of $26.47 million in 2022, with a salary-cap number of $46.664 million. The new deal bumps up his pay this season while lowering the cap figure.
The Packers' quarterback is set to earn $42 million in 2022, $59.515 million in 2023 and $49.3 million in 2024, per Pelissero, getting him to the three-year, $150.815 million mark.
After the three years, Rodgers could retire at 41 years old, or the Packers could look to rework the deal again.
The new deal significantly reduces Rodgers' cap hit in 2022 to $28.5 million (roughly $18 million lower than scheduled), which gives the Packers the cap space to ensure they'll remain Super Bowl contenders.
In the past day, the Packers have maneuvered to get under the salary cap, which would allow them to make moves in free agency. Green Bay extended Rodgers and Preston Smith, lowering their cap figures this season, and released Za'Darius Smith and Billy Turner. The changes have cleared $45 million in cap space.
Pushing Rodgers' big cap hits to the future was the only way for Green Bay to give the back-to-back MVP the raise he deserved while keeping the NFC North champs' roster mostly in place. The Packers will worry about the bill coming due down the road -- when the cap is expected to increase significantly.