Every year, players that have routinely outperformed their present contracts and players that are one year away from free agency are tabbed as extension candidates. While shelling out more money can be seen in a negative light because a team is betting heavily on that player once more and tightening cap space for the future, it also can provide immediate cap relief.
A team can lower the cap hit of a player in his last remaining year of the original deal and spread that money out over his new deal. Such was the case for Jalen Ramsey in 2020.