Dolphins give the first step to find a long-term solution with two high-end players

The Miami Dolphins made two obvious decisions this week. According to general manager Chris Grier, the team will pick up the fifth-year options on wide receiver Jaylen Waddle and edge defender Jaelan Phillips.

"We're getting to that point, but I would say we'll end up picking it up on them," Grier said on Tuesday. "I'm comfortable saying that, there's no reason to lie to you guys and hide it, but yes."

How it works

Since 2011, when the NFL established a rookie-scale system, teams have had fifth-year options over first-round draft picks, which has to be picked up or not after three seasons.

Starting in 2020, though, it became player-friendlier, because the option is now fully guaranteed.

There are four tiers of value, and that determines how much money the player will make in the fifth-year option: basic, playtime (75% of the snaps in two of the first three seasons, an average of 75% over all three seasons, or 50% in each of the first three seasons), one Pro Bowl appearance, or more than one Pro Bowl appearance. The final value is defined also by position.

Wide receiver Jaylen Waddle, who was the sixth overall pick, will make the second level of the option, based on playing time, which is $15.591 million in 2025. His 2024 salary is still the same, $4.353 million.

Jaelen Phillips is officially listed as a linebacker. He doesn't hit any of the playing time qualifiers, so he will make the basic value, $13.251 million. In 2024, his salary is $2.571 million.

Special class

Will Grier had a phenomenal draft class at the top in 2021. Beyond Waddle and Phillips, the team drafted safety Jevon Holland in the second round. Chris Grier mentioned the desire to start extension negotiations with Holland, since he doesn't have a fifth-year option and is entering the last year of his rookie deal.

Plans

For the first-rounders, especially Jaylen Waddle, exercising the fifth-year option is just a first step to find a long-term deal.

Now, the Dolphins have a clear baseline of what will cost to keep Waddle. Devonta Smith, who was drafted four picks later by the Philadelphia Eagles and has similar career numbers, signed a three-year, $75 million extension. Throughout his first three seasons, Smith combined 240 receptions for 3,178 yards and 19 touchdowns.

Jaylen Waddle has had 251 receptions for 3,385 yards and 18 touchdowns. Both players have established veterans as WR1s ahead of them in AJ Brown and Tyreek Hill. Presumably, Waddle's contract might top Smith's, but it would be smart for the Dolphins to execute a longer deal.

Timeline

Tyreek Hill is still the highest-paid wide receiver in football — at least until the Minnesota Vikings find an agreement with Justin Jefferson. However, Hill has only one real year left in his contract — he's slated to make $22.935 million in 2024.

After that, Hill's salary jumps to $45 million in 2025. That ballooned number was put in place for two main reasons. First, to inflate Hill's average salary for marketing purposes. But also to force an earlier decision from the Dolphins, be it a new contract or a release.

Hill is 30 years old and will be 31 when the time for that decision comes. Maybe, the Dolphins will find a way to keep both players, but there's also a chance that Miami lets the older receiver walk to pay Waddle.

Pros and cons

The situation with Jaelan Phillips is not so obvious, but he has been an important starting edge defender for the Dolphins. The problem is that he suffered an Achilles injury in week 12 of last season, and that's an injury that tends to linger and take some athleticism off the player for the long term. Even playing only eight games last year, he finished up the season with 6.5 sacks.

The big question now is how he will come back from the injury, and that will ultimately determine how big his second contract will be.