How much will Mark Davis pay Josh McDaniels for Raiders exit? Insider sheds light on substantial amount

Mark Davis had the final say in the firing of Josh McDaniels and Dave Ziegler. After meeting with some Las Vegas Raiders players, he decided they’re better off without McDaniels because the team regressed while he was at the helm.

But while McDaniels won’t be calling the shots anymore, he still has an active contract with the AFC West squad. He is still due a substantial amount unless he agrees to a contract settlement, like one of the Raiders’ recent coaches.

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How much do the Raiders owe Josh McDaniels after his firing?

Unlike player contracts, details about NFL head coaching salaries are largely unknown and are not counted against the salary cap. However, reports revealed that Josh McDaniels signed a six-year contract worth $10 million annually when the Las Vegas Raiders hired him last year.

As per SI's Hondo Carpenter, the Raiders will likely pay around $45 million to McDaniels, which is equal to the amount remaining on his contract.

The high yearly pay might have lured McDaniels from the New England Patriots. Coincidentally, Bill Belichick is the NFL’s highest-paid head coach, earning approximately $20 million annually. McDaniels' $10 million year salary ties him with the San Francisco 49ers’ Kyle Shanahan as the eighth-highest-paid coach.

With McDaniels getting fired roughly halfway into the 2023 season, he is still owed his salary for the remainder of this season. The Raiders must also pay the money owed to him from 2024 to 2027. Given there’s still four and a half years left in his deal, Mark Davis must pay McDaniels $45 million.

That’s a massive amount to pay someone who isn’t doing the job. But Mark Davis felt firing him was best for the franchise because they are 3-5 after eight games. It is also frustrating the All-Pro wide receiver Davante Adams only had one catch for 11 yards in their Week 8 loss to the Detroit Lions.

McDaniels finished his coaching tenure with the Raiders at 9-16. Like his stint with the Denver Broncos, he did not finish his second season as head coach.

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Will the Raiders try to settle with Josh McDaniels?

Since there’s no merit in paying for services they don’t receive, the Raiders could negotiate for a contract buyout with Josh McDaniels. If he agrees, he might get a portion of the $45 million the Raiders owe him. Doing so also clears his salary off the team’s books.

That’s the approach the Raiders made with former head coach Jon Gruden. The franchise re-hired him as head coach via a ten-year, $100 million contract. However, he was taken off the team five games into the 2021 season. Gruden and the Raiders eventually settled the payment for the remaining years of his deal.