Josh McDaniels contract details: How Raiders coach's firing impacts future salary, guarantees | Sporting News (2024)

The Raiders became the first NFL team to fire their head coach on Tuesday when they dismissed Josh McDaniels less than two years after hiring him to run the team.

The decision was announced late on Halloween, as the Raiders released a statement confirming that both McDaniels and general manager Dave Ziegler had been let go.

"After much thought about what the Raiders need to move forward, I have decided to part ways with Josh and Dave," owner Mark Davis said in a statement. "I want to thank them both for their hard work and wish them and their families nothing but the best."

McDaniels had posted a record of just 9-16 during his 25 games with the Raiders; he turned a 10-7 team that had made the playoffs following the 2021 season into a 6-11 team and was on pace for another losing season in 2023.

Thus, it makes sense that the Raiders would want to move on from the second-time head coach. Still, it was a surprise that they were able to do so.

Why? Because the Raiders had inked McDaniels to a lucrative, long-term contract that many believed Davis wouldn't be willing to eat.

But Davis evidently decided that he was through with McDaniels' effort after Las Vegas' 26-14 loss to the Lions on "Monday Night Football." Now, he will be on the hook to continue compensating McDaniels while looking for a new coach.

MORE: Ranking the 6 best coaching candidates to replace Josh McDaniels with Raiders

Here's what to know about McDaniels' contract, salary and what will happen now that he is no longer employed by the Raiders.

Josh McDaniels contract details

When the Raiders hired McDaniels to be their new coach in January 2022, they signed him to a six-year deal worth approximately $10 million per season.

As is often the case with NFL coaches, there wasn't any concrete reporting about how much McDaniels was making. That said, it is believed that his overall contract value made him one of the 10 highest-paid coaches in the NFL, checking in just ahead of Mike Vrabel ($9.5 million per year) and tying him with Kyle Shanahan ($10 million per season) on the list.

So, all told, it appears that the Raiders are going to be sinking roughly $60 million into their decision to hire McDaniels. ESPN's Adam Schefter reports that the team is still on the hook for the final four-plus years of his contract.

Raiders gave Josh McDaniels a six-year contract in January 2022. He has over four full year left on the deal that the Raiders are obligated to pay. pic.twitter.com/aOjrl7AtX7

— Adam Schefter (@AdamSchefter) November 1, 2023

That may have been part of the reason that the Raiders were originally planning to give McDaniels and Ziegler a chance to work through the 2024 NFL season, as Jeff Howe of The Athletic reported. After all, the Raiders have often been described as one of the NFL's most cash-poor teams, and they just had to pay out part of Jon Gruden's 10-year, $100 million contract after he resigned amid a workplace misconduct scandal in 2021.

But after watching the Raiders endure a year-and-a-half of significant on-field issues, Davis decided that he had seen enough.

MORE:Why the Raiders fired Josh McDaniels, explained

Josh McDaniels salary

As mentioned, it is estimated McDaniels is making approximately $10 million in salary annually. That ties him with Kyle Shanahan for the eighth-highest mark in the NFL, per NBC Sports Boston.

Below is a look at the 10 highest-paid coaches in the NFL for 2023, a list that is predictably led by the Patriots' Bill Belichick.

It's worth noting that NFL player contracts are far more accessible than the ones given to coaches and that the latter are not subject to any sort of salary cap. Nor are teams required to report how much they pay any of their coaches.

Thus, the values on the list are all likely approximations, and it isn't clear whether any deals have extra incentives or if these are the base values.

Either way, McDaniels was among the most highly-paid coaches in the NFL. That's how the Raiders lured him away from the Patriots in a move that proved to be ill-fated.

MORE: Frustration boils over for Davante Adams after "Monday Night Football" loss

What will happen to Josh McDaniels' contract after firing?

As Schefter reported, the Raiders are on the hook for the final four-plus years of McDaniels' contract. It appears that they will pay out the total value of his deal, which runs through the 2027 NFL season.

Hypothetically, the Raiders could attempt to buy McDaniels out of his contract. After all, the team reached a settlement with Jon Gruden after he stepped down from his post following the revelation of his email scandal in 2021.

That said, McDaniels would have little to no reason to accept an offer from the team. Why? Because he was fired for his team's performance on the field; he wasn't fired with cause off it.

Of course, it is worth wondering whether McDaniels had any incentives in his contract that he will fail to meet after his firing. That would save the Raiders at least some of the money that they owe him over the next four seasons.

But as it stands, it appears that the Raiders will, once again, be paying someone not to coach for their franchise. Thus, they are on the hook for a total of $85 million owed to McDaniels and Gruden, as ESPN's Adam Schefter reports.

The Sporting News will follow the latest updates on McDaniels' contract situation and provide more details as they become available.