The Los Angeles Chargers and safety Derwin James have agreed to terms on a three-year extension worth $76.5 million, according to a league source. The $25.5 million average annual salary moves him past the Baltimore Ravens’ Kyle Hamilton as the highest-paid safety in the NFL.
James was entering the final year of a market-setting contract he signed in 2022 and has now reset the safety market twice in back-to-back extensions.
After two down years, James has rediscovered his All-Pro form under coach Jim Harbaugh. In particular, former defensive coordinator Jesse Minter helped by utilizing James closer to the line of scrimmage, including as a nickel player. Over the past two seasons, James has thrived in the role, which takes advantage of his skills as a blitzer, run defender and man coverage player.
Minter left this offseason to take the Ravens’ head coaching job. Chris O’Leary, Minter’s replacement, was James’ safeties coach with the Chargers in 2024. O’Leary was paramount in James reestablishing himself as one of the league’s best safeties. Now, James will remain in this hybrid role as O’Leary takes over the defense. O’Leary will be running the same scheme as Minter and said he will be using James in a “similar” way.
This proof of concept is an important aspect of the new lucrative contract. James is worth the money because his role in the Chargers’ defense fully harnesses his versatility. In addition, James’ vibrant, uplifting personality has helped shape Harbaugh’s culture in Los Angeles.
“One of my favorite players I’ve ever worked with and coached, because of how contagious his energy is, how great he wants to be,” O’Leary said in February.
Toward the end of 2023, this extension seemed unlikely. James had lost his way under former Chargers coach Brandon Staley. There was too much on James’ plate, and he was no longer playing his violent, fast brand of football. He was effectively benched in a Week 16 loss to the Buffalo Bills.
That offseason, Minter came in with a clear goal for James. As he told the safety in the winter of 2024: “Let’s re-stake the claim as you being one of the best safeties in football.”
James took that to heart. Part of it was a change in mentality. Part of it was how he was used in the scheme.
“I just remember looking back and saying, ‘Man, how do I want to play?’” James told The Athletic in 2024. “I’m playing my best football when I’m having fun, not thinking, seeing the ball, seeing the check downs, going to kill them and just making plays on the ball. So I just really had to get back within myself. It wasn’t like I needed to go lift or get stronger. I’m still the same strength, still the same speed. It’s really just simplifying my mind and just saying, ‘Man, you Derwin James, bro. Get back to having fun.’”
Over the past two seasons, James has done exactly what Minter projected and re-staked his claim as one of the best safeties in football.
That was evident on the field in the myriad ways he impacted the game. James set a career high with 5.5 sacks in 2024. He tied his career high with three interceptions in 2025. He set his previous high as a rookie in 2018.
It is now also evident in his contract.
“The best safety I’ve ever seen in the history of the National Football League,” Harbaugh said in September. “I don’t think I’m going out on a limb there. He is one of the most incredible players I’ve ever watched.”