4 observations on the Jaguars' three-year, $41.25M deal with tight end Evan Engram

Evan Engram will be returning for the 2023 season and beyond after the Jacksonville Jaguars and the veteran tight end agreed Sunday to a three-year contract worth $41.25 million with $24 million fully guaranteed.

The deal was struck one day before the league's multi-year deadline for franchise-tagged players. If the two sides couldn't come to an agreement, Engram would have to play on a one-year deal, likely the franchise-tag number of $11.345 million guaranteed.

The deal gives Jacksonville some cap space with Engram's cap hit set at $5 million for 2023, according to a source. That means the Jaguars currently have roughly $21,913,619 in cap space to carry over into next year or stashed away to spend on outside free agents this year.

Engram's contract was the final hurdle the team had to get over during the offseason, a little over a week before training camp begins July 26, the first day the Jaguars will hit the field to kick off the 2023 season.

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With Engram, who will be 29 when the regular season begins, now locked in, we can take a look at what the contract agreement means for the team, and Engram, moving forward.

Here are four observations from the Jaguars signing Engram to a long-term deal.

Engram, Jaguars accomplished their goal of the offseason

There was little question as to what the Jaguars wanted to accomplish in the offseason. Outside of acquiring new, young talent via the NFL Draft, the Jaguars made it their mission to re-sign their own impending free agents.

The team came close to that, re-signing multiple players while losing just four 2022 starters or key contributors. Those included tight end Chris Manhertz, receiver Marvin Jones, defensive lineman/outside linebacker Arden Key and right tackle Jawaan Taylor.

Jacksonville attempted to retain Engram via the franchise tag, but their ultimate goal was to re-sign him to a long-term deal. That was consistent with Engram's goal, too, wanting to stay in Jacksonville, the place that provided him with some of the best statistics of his career.

Both parties get their answers fulfilled and the team's roster will be better because of it.

Last year, Engram broke tight-end franchise records for both receptions (73) and receiving yards (766). The majority of Engram's production came during the latter portion of the season. He hauled in 36 passes for 410 yards and three touchdowns through the final six games of the year.

That helped Jacksonville reach its first AFC South title since 2017 and the second in franchise history. The Jaguars went on to play in the Divisional Round of the playoffs against the Kansas City Chiefs.

Engram's payout aligns with top-tier tight ends in the league

The first question asked after a contract agreement gets announced is: well, how much are they making?

For Engram, his three-year deal will net him $41.25 million over the course of the contract ($13.75 million per year), which includes $24 million fully guaranteed.

According to OverTheCap, Engram ranks eighth in total value, just ahead of New Orleans Saints "tight end" Taysom Hill, who has a total value of $40 million on his deal.

Engram ranks sixth in average salary per year behind the New York Giants' Darren Waller ($17 million per year), San Francisco's George Kittle ($15 million), Kansas City's Travis Kelce ($14.3125 million), Philadelphia's Dallas Goedert ($14.250 million) and Baltimore's Mark Andrews ($14 million).

In terms of total guaranteed, Engram ranks eighth in the league among tight ends, just behind New England's Hunter Henry ($25 million). In terms of fully guaranteed payout at signing, if Engram's holds at $24 million, he would rank fourth in the league.

Ultimately, Engram's deal likely breaks down into a two-year deal with guaranteed franchise-like payment through the first two years of his service. Without further details, however, it isn't yet known how much cap space the team will save with his new contract.

Jaguars want offensive cohesion beyond 2023 campaign

The aggressiveness of the deal, considering the payout, timing and position, signals to everyone following the league that the Jaguars expect to retain its current offense beyond the 2023 season.

Currently, the Jaguars are set to welcome back the majority of its core skill players in 2024, including Engram, receivers Christian Kirk and Zay Jones, running back Travis Etienne, quarterback Trevor Lawrence and offensive linemen Cam Robinson, Brandon Scherff, Luke Fortner, Walker Little and Anton Harrison.

The only player missing from that lineup are interior linemen Ben Bartch and Tyler Shatley, along with WR Calvin Ridley, who is slated to play in 2023 on his fifth-year option, originally picked up by the Atlanta Falcons.

Jacksonville's offense doesn't appear to be shaping for a major renovation after this coming season, giving the team some breathing room to build around their young, talented offense in the future and the defense as contracts begin to come up for renewal.

Of course, it isn't just Engram's deal that marks the sign of the Jaguars feeling good about their offense, but it does give a bit of insight into how much renovation the team is willing to have done to that area.

Jaguars can focus on other impending free agents after 2023

With Engram's deal squared away, the Jaguars won't have to worry about debating between doubling up on the franchise tag, paying him a long-term deal or letting him walk following the 2023 campaign.

The Jaguars currently have 18 players slated to become unrestricted free agents in 2024. That includes outside linebacker Josh Allen and receiver Calvin Ridley, both of whom will likely be candidates for the franchise tag.

Other players such as Lawrence, Etienne, Little and safety Andre Cisco will be up for renewed deals, though that doesn't have to come right away.

The Jaguars can focus on the other immediate needs like Allen and Ridley now that Engram is back in the fold. However, don't expect the Jaguars to extend players during the 2023 season with the team's management favoring offseason extensions and contract signings.

Demetrius Harvey is the Jacksonville Jaguars reporter for the Florida Times-Union. You can follow him on Twitter at @Demetrius82.

This article originally appeared on Florida Times-Union: 4 observations on Jaguars' three-year deal with tight end Evan Engram