Falcons Rework A.J. Terrell’s Contract

Specifically, the team converted $12MM of the cornerback’s salary into a signing bonus. This helped carve out an extra $9MM in cap space, per Jason Fitzgerald of OverTheCap.com. The veteran will now earn a $3MM base salary in 2026 and is attached to a $13.5MM cap charge.

Terrell is still playing on the four-year, $81MM extension he inked with the Falcons back in 2024. That contract effectively included $65.8MM in guaranteed money; at the time, that represented the second-highest commitment to a cornerback in NFL history. As a result of that lucrative deal, the organization will have to continue navigating the contract in upcoming seasons. In addition to carving out some extra cap space, today’s contract machinations kicked the can down the road in that regard.

The cornerback is attached to a sizable $27.5MM cap hit in 2027, meaning the team could once again go to the negotiating table with the veteran. The Falcons will truly face a decision about Terrell’s roster status in 2028, when he’s attached to a $29.5MM cap hit. By making the CB a post-June 1 cut that year, the organization would save $19MM against the cap vs. $10.5MM in dead cap. In other words, this surely isn’t the last time we’ll hear of the player’s contract.

Of course, neither GM Ian Cunningham nor head coach Kevin Stefanski were around when Terrell inked that extension, and it’s uncertain how the new Falcons regime feels about their high-priced cornerback. A first-round pick in 2020, Terrell showed off his ceiling as a sophomore, when he earned an All-Pro nod after finishing with three interceptions and 16 passes defended. For his efforts that season, Pro Football Focus ranked him 2nd among 116 qualifying cornerbacks.

He’s struggled to live up to that showing. He finished the 2024 campaign having allowed a career-worst 67.2 completion percentage on passes thrown his way. He rebounded slightly in 2025, improving that mark to 58.3 percent. However, PFF marked him down for eight missed tackles, leading to a middling positional grade (75th among 112 qualifiers).

Fortunately for Terrell, he’ll have an opportunity to show the organization’s new leadership what he’s got. The Falcons haven’t done anything to address the position this offseason, meaning they’re easily penciling Terrell in for an important role in 2026.