The deal is reportedly a two-year extension that will pay Brady $23 million this year and it will also create $5.5 million in cap space for the team, so it really is a win-win for both sides.
In addition, ESPN's Field Yates reports the final two years (2020 and 2021) are void years, so realistically Brady is year-to-year at this point. Ultimately, this was done so Brady gets an extension and isn't in a walk year and also so the team gets some more cap space to work with.
Many will ask what the deal means.
Basically, the Patriots are looking at Brady on a year-to-year basis, which shouldn't come as much of a surprise considering the QB just turned 42 years old Saturday. Nothing is certain with him at this point in his career and the team is well aware of that.
The organization also wants to show some commitment to him considering there really isn't a backup plan in place. Rookie quarterback Jarrett Stidham has flashed over the first week of training camp, but it's hard to imagine him being ready to take over the team at the start of next season.
It's also worth noting the Saints used "void years" in Drew Brees' contract, so it is not totally unprecedented. This was done to spread out the cap hits, which likely is the same for Brady as he was going to count for $27 million against the cap in 2019.
Bottom line, the new deal benefits both sides in the short-term as Brady gets more cash and the team gets more cap space. Then beyond this year, it truly is year-to-year. But, if Brady chooses to come back and play and is at the same level as the years prior, the team is still very much committed.
While the terms of the deal are unusual, it's because the entire situation is unusual as quarterbacks very rarely are still playing at Brady's level into their 40s.