The New York Jets ended months of Peyton Manning speculation Friday night with an emphatic statement, announcing a three-year contract extension for incumbent Mark Sanchez.

The Jets extended Sanchez after a season in which they openly admitted they weren't pleased with his rate of development. The announcement came only hours after they were eliminated from the Manning sweepstakes.

The deal includes $20.5 million in guarantees for 2012 and 2013 and $40.5 million in "new" money, bringing his total over five years to $58.25 million, according to sources. He can make an additional $10 million in escalators.

The $58.25 million gives Sanchez the seventh-highest financial package among NFL quarterbacks, sources told ESPN senior NFL analyst Chris Mortensen.

Sanchez's cap charge in 2012, however, drops from $14.25 million to $7.85 million, a savings of $6.4 million, according to a source. Unofficially, it means they have more than $14 million in cap dollars to spend in free agency.

A breakdown of the contract:

• His 2012 compensation will remain the same as the previous contract ($11.75 million), except now it's fully guaranteed and will be divided as follows: $8 million signing bonus; $3.25 million base; $500,000 workout bonus.

• His 2013 compensation went from a non-guaranteed $6 million to a guaranteed $8.25 million, bringing the total guarantee in the new contract to $20.5 million.

• The money in 2014-2016 is not guaranteed. That includes $11.5 million in '14 ($2 million roster bonus, $9 million base, $500,000 workout), $14 million in '15 ($1 million roster bonus, $12.5 million base, $500,000 workout) and $12.25 million in '16 ($1 million roster bonus, $10.75 million base, $500,000 workout). There's also $10 million in potential escalators.

The contract virtually assures that Sanchez will be the starter for at least two more seasons. Sanchez, speaking to reporters for the first time since the season ended, said he wasn't bothered by the Manning speculation.

"Not at all," he said late Friday night on a conference call. "The best part about it is, they chose to stick with me. I'm going to be their starting quarterback for the next few years here and that's exciting. I'm the leader of this team and I'm excited to get back."