CHARLOTTE, NC — The Carolina Panthers just dropped $120 million on Jaelen Phillips, but the sticker price doesn’t tell the whole story. Fresh off an 8-9 season that remarkably ended with an NFC South title and a narrow 34-31 playoff exit against the Rams, Dan Morgan is officially aggressive. By landing Phillips and linebacker Devin Lloyd, Carolina is betting big that a top-ten defense will carry them past the “losing record” asterisk of 2025.
A Masterclass in Cap Management
On paper, Phillips’ four-year contract carries a $30 million annual average (APY). That puts him just ahead of stars like Josh Hines-Allen and Brian Burns, but still below the elite $34 million+ tier occupied by Nick Bosa and Myles Garrett. However, Panthers reporter Mike Kaye suggests the real value lies in the fine print. Kaye argues this is effectively a three-year, $90 million commitment with built-in escape hatches.
The logic is simple: if Phillips hits his stride in 2026, Carolina will likely restructure the deal to push the cap hit further down the road. Because his Year 3 money becomes guaranteed early in Year 2, the Panthers have a clear window to evaluate his health and production. Unless he completely “bombs,” the team gets a premium pass rusher in his prime for a manageable cap percentage as the league’s total cap continues to rise.
Strengthening the Floor
Phillips isn’t the only heavy hitter joining Ejiro Evero’s unit. The Panthers also secured linebacker Devin Lloyd on a three-year, $45 million contract. While Phillips provides the ceiling with his 18.8% pressure rate, Lloyd provides the floor. After a 2025 season where the defense ranked 15th in points allowed, adding two former first-rounders in their mid-20s signals a shift from “rebuilding” to “contending.”
“If he plays well next year, they will almost certainly restructure to open up cap and push down the cap number. His contract becomes guaranteed for Year 3 early in Year 2 unless he essentially bombs.”
— Mike Kaye, Panthers Reporter
What’s Next for Carolina
The Panthers showed they could hang with the heavyweights during their Wild Card thriller in January. Bryce Young looked like a franchise cornerstone in that game, throwing for 264 yards and a touchdown while matching Matthew Stafford blow for blow. Now, the front office has given him the defensive support required to win those shootouts.
With the NFC South still wide open—no team in the division finished above .500 last year—Carolina is the early favorite to repeat. If Phillips and Lloyd play up to their potential, an 8-9 record will be a distant memory in Charlotte. The focus is no longer just on winning a weak division; it’s about surviving the gauntlet of the NFC playoffs.
