On ESPN's First Take, Olsen said his "head popped off" seeing the details of Newton's contract.
"It's the all-time greatest deal," the three-time Pro Bowl tight end added.
Per NFL Network's Ian Rapoport, Newton's one-year contract with the Patriots includes $550,000 in guaranteed money, a $1.05 million base salary and incentives that can push its maximum value to $7.5 million.
Ben Volin of the Boston Globe shared cap numbers for each of the quarterbacks on New England's roster:
Perhaps no player in the NFL knows what Newton is capable of better than Olsen. They spent the previous nine seasons as teammates with the Carolina Panthers. Olsen signed with the Seattle Seahawks as a free agent in March.
Newton went 68-55-1 in 124 starts for the Panthers. He led the franchise to four playoff appearances, three straight NFC South titles from 2013 to 2015, an appearance in Super Bowl 50 after the 2015 season and is the only player in team history to be named NFL MVP (2015).