Justin Herbert, Chargers agree to five-year, $262.5 million extension

Justin Herbert and the Los Angeles Chargers have agreed to a massive long-term extension that will make him the highest-paid quarterback in the NFL by average salary, NFL Network Insiders Ian Rapoport and Mike Garafolo reported on Tuesday.

Herbert is signing a five-year, $262.5 million deal, which just slightly surpasses Lamar Jackson's April extension with the Ravens in terms of total money and average salary per year.

The new deal is set to run through the 2029 NFL season. The Chargers subsequently announced the extension.

Herbert will receive $218.7 million in guarantees in his new deal.

Herbert had two years remaining on his rookie contract, which was scheduled to pay him roughly $8.5 million this season and $29.5 million on his fifth-year option contract in 2024.

Herbert, 25, was a first-round pick (sixth overall) by the Chargers in 2020. He's started 49 of a possible 50 games, throwing for 14,089 yards, 94 touchdowns and only 35 interceptions. Herbert also has rushed for 683 yards and six TDs in his three seasons.

The Chargers are 25-24 with Herbert starting. They made the playoffs last season but blew a 27-0 lead in an eventual 31-30 wild-card loss to the Jaguars.

This contract will have ripple effects around the NFL. It should give the Bengals and fellow 2020 NFL Draft classmate Joe Burrow a target zone, money-wise, for their own negotiations, and it wouldn't be stunning if Burrow surpassed Herbert's financial numbers if and when he and the Bengals can come together on their own deal.