Why Jaelan Phillips’ $120 million contract is an absolute steal for Panthers

The Carolina Panthers took a big step forward during the 2025 season. Carolina only went 8-9, but they won the NFC South and nearly beat the Rams during the playoffs. The Panthers made a big move in free agency, signing edge rusher Jaelen Phillips and vaulting the team into the NFC contender conversation.

Panthers reporter Mike Kaye explained why the contract that Carolina gave Phillips could be an absolute steal.

“If he plays well next year, they will almost certainly restructure to open up cap and push down the cap number,” Kaye wrote on social media. “His contract becomes guaranteed for Year 3 early in Year 2 unless he essentially bombs.”

Carolina signed Phillips to a four-year contract worth $120 million at $30 million average per year (APY). That puts Phillips just above edge rusher like Josh Hines-Allen and Brian Burns in terms of APY. He falls just under some of the NFL’s elite pass rushers.

But Kaye argued that Phillips’ contract is closer to a three-year deal.

I think 3 years, $90 million is the deal, which will almost certainly be reworked if successful,” Kaye added. “If it doesn’t, pretty notable gamble (let’s not kid glove this). As with any deal there is nuance.”

If Phillips dominates in 2026 and reworks his contract, then Carolina could get a few seasons out of him for a small amount of salary cap space.

Carolina also signed linebacker Devin Lloyd to a three-year contract worth $45 million. The additions of both Phillips and Lloyd should significantly raise the floor for Carolina’s defense.

Panthers fans are hopeful that both players will be worth every penny. Based on Kaye’s analysis, that will almost certainly be the case with Phillips.

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