Latest NFL Approved Proposal Benefits 49ers Extending George Kittle

Giving Kittle a lucrative deal without an idea of the future would not have been smart business.

Why haven't the 49ers extended George Kittle yet?

Well, there are definitely multiple factors that are contributing to the lack of negotiations. One factor this being massively overlooked is the salary-cap projection for 2021 and beyond. 

Due to the ongoing pandemic, the NFL is expecting a steep loss in revenue. While it hasn't been made official, fans may not be allowed to attend games. That takes a pretty hefty stab at the league's wallets. You also cannot rule out potential game cancellations, so this is a precarious scenario. 

Because this is so tricky, there is no telling how the 49ers can structure Kittle's contract to spread it out. And the fact that he is such an elite player makes it difficult. He is likely going to try to get the Niners to break him off around $17 million per or more. That type of money will put the 49ers in a bind if the cap does take a massive hit.

However, the NFL just may have salvaged those revenue losses with their latest approved proposal.  

NFL owners approved a proposal today to cover the seats closest to the field, then place sponsor logos over those seat coverings.

— Adam Schefter (@AdamSchefter) June 25, 2020

The seats that are closest to the field that are visible on television will be tarped off and covered in advertisements. So the league essentially created ad space in an attempt to recover any pandemic related losses. A very wise move to keep the salary cap flow intact.

Because of that, this benefits the 49ers extending Kittle tremendously.

Now I am not saying this will speed up negotiations, but it will have eliminated a hindrance that would've continued to stall them. San Francisco can now have a clearer picture of how they can structure his deal over the next few years.

If there is one thing the 49ers are good at, it is structuring contracts to spread the money out over time. That is why this is such a big deal for them. Those revenue losses essentially made them blind. Giving Kittle a lucrative deal without an idea of the future would not have been smart business.

Thanks to the tarped-off ad space, the 49ers have a sense of how to do it. There is still the variable of how much money the league is going to salvage with the ad space, so that will be something that will keep negotiations stalled. But I would expect that as soon that there is clarity on what those numbers are, talks will pick up again. 

Then the debate will pick up again about whether or not Kittle is worth $17 million per or more.