I don’t see the incentive for Peters to offer even top ten money for this coming year, much less the following years as you and others rightly point out.
In particular, even if the two sides could agree on market value, the natural compromise would be somewhere between it and the <$20 M that McClaurin is currently slated to earn.
I disagree. I think Terry is a top 10 receiver. I think he's earned it. Using "basic" stats (not advanced stats), he was 15th in yards with 1,096, 2nd in TDs with 13, but only 22nd in targets. HIs average yards per reception was 13.4, which was tied with Ja'Marr Chase. Only Justin Jefferson, Brian Thomas and Jerry Judy were WRs with higher Yards per Catch than Terry who had 100+ catches. If Terry had more targets, his total numbers would all be better. Notably, his targets are ~20-30 lower than most other #1 receivers.
You could look at that as a negative. I think it's more likely because of 3 factors:
1. Kliff's offense is designed to spread the ball around.
2. There wasn't a really good #2 to pull coverage, so Terry saw double coverage a lot
3. JD5 ran a lot, combined with the regular running game, there were simply fewer targets for WRs than say in Cincinnati (Chase #1 WR in yards and attempts), and Minnesota (Jefferson #2 in yards and attempts.) Would Terry equal either of their numbers if he was in those situations? No. But he'd be pretty close to them.
Context matters.
And to me, Terry is, RIGHT NOW, a top 10 WR. Probably in the 5-10 range. And that's how he should be paid RIGHT NOW.
The problem is not now, it's the extension will most likely run through his age 32 and 33 seasons. And at that point, it would be hard to imagine he would be able to have the same production.
So that's the needle they have to thread. RIGHT NOW, it's "show me the money" time.
However, the extension carries into the back part of Terry's career.
I'm actually pretty sure Peters might be totally happy to let Terry play out his current contract and then franchise him next year if he's productive this year, then figure out a longer term deal when Terry is entering his age 32 season, to see where his productivity is.
But Terry won't want that. So, his age becomes a factor.
Is Terry a good receiver? Yes. But lets not forget that production means everything. And yes, he did have 1,000 yard seasons for four out of five seasons, but he averaged 5.5 touchdowns a season before we drafted JD5 while being the main receiving threat on the team. You could make the argument that he is finally tapping into his true potential, but he was probably not even a top 15 WR before last season. I just don't want to overpay him, either. He's a big part of the team, but at a certain point you have to recognize that he's probably a WR2 on many other teams so he shouldn't be making more than $30 million.
I don't think that's true. I think unless he's on the Bengals or Vikings, he's the #1 WR, or at a minimum, co-#1 WR.
The thing is, he's more valuable to this team than to any other team. He is "Mr. Culture." He fits in perfectly with the type of player Quinn and Peters want. They need a well-rounded #1 WR with deep speed. He is by far the best WR on this team.
Production isn't everything. There are other things which are also important. And Terry has both the production and the other things.
This is why I think a deal will get done.
I wonder if Peters' close ties to SF and the way the Aiyuk deal has seemingly backfired on them is impacting how he sees the Terry situation?
He talked about that a little in his presser. He said he wasn't directly involved, but saw it second hand. I think Peters has many things going through his mind, and I think he's looking at the whole picture.
Terry is a big part of that picture.
But I don't think he's going to change his overall opinion of the value. Terry is going to have to realize he probably is over-valuing his worth based on his age. If he was 2 years younger, the conversation is different.
The problem is the age and length of the deal. Terry is absolutely essential to the success of the team and is a top 10 WR now. But that's probably not true at the end of the extension. And therein lies the rub.