Why the Baltimore Ravens Strike Gold with the Ray Rice Contract Extension

After months of speculation, the Baltimore Ravens and All-Pro running back Ray Rice agreed to a five-year contract just minutes before the 4 p.m. deadline. Rice has been the most valuable offensive player to the Ravens and wanted to ensure himself of an extension at age 25.

CBS Sports NFL Insider Jason LaCanfora first reported the terms of the Rice contract extension: "On Ray Rice's 5yr deal with Ravens, $25M comes in the 1st 2 yrs, and $24m is guaranteed. He makes $17M iin 2012 and $24M in 1st 12 months."

The negotiations heated up within the last hour, and both sides come away happy in the end. Rice received the long-term security that he deserved, along with the majority of the contract being guaranteed money.

As for the Ravens, Ozzie Newsome and negotiator Pat Moriarty completed a deal that will put the Ravens in a good financial situation late into the detail. As LaCanfora reported, Rice will receive the majority of his money within the first two years of his contract.

The likelihood of Rice receiving a contract similar to Adrian Peterson's deal was very unlikely. However, both sides were able to complete a deal that made their star running back happy to stay in Baltimore for five more years.

The Ravens were cautious about giving Rice an extension due to the short careers of running backs. With less money guaranteed at the end of the deal. the Ravens will have more flexibility for roster moves in the last two years of Rice's contract.

More importantly, the Ravens saved the franchise tag to be either used on Joe Flacco or Ed Reed, with Flacco the most likely candidate to be placed with the tag in the near future.

Flacco may be the difference-maker in a potential championship run for the Ravens, but Rice has demonstrated the last three seasons that he will be the focal point of the offense and will be the top priority for opposing defenses.

Potentially, owner Steve Bischotti and Ravens management could have encountered a difficult decision if Rice was not given a new extension. The franchise tag has been placed on Haloti Ngata and Terrell Suggs in the past, and it has become clear that Flacco will likely become the next player to receive the tag.

The Ravens continue to compete at a championship level while adding young talent to both sides of the football. Fortunately, the team's future offensive star was committed to working with the Ravens and will be a crucial component of their future success in the AFC.

Matt Miselis is an NFL Featured Columnist for BleacherReport.com, and has covered the Baltimore Ravens for the last three seasons. Follow him on twitter.