Report: Chiefs Sign Travis Kelce to Four-Year, $57 Million Contract Extension
The Kansas City Chiefs and Travis Kelce have reportedly agreed to terms on a four-year, $57 million contract extension that will keep Kelce in Kansas City for the next six seasons.
Ian Rapoport of the NFL Network first reported that the Chiefs and Kelce's representatives had been "working on an extension to pay him according to his production." ESPN's Jeremy Fowler first reported that it's a four-year extension, tying Kelce to the Chiefs for the next six seasons. Rapoport later reported that the contract is worth between $14 million and $15 million per year in new money, and ESPN's Adam Schefter was first with final terms: four years, $57.25 million with $28 million in guarantees for the star tight end, in addition to his next two years already on the books with KC.
This move comes just hours after reports surfaced of San Francisco 49ers tight end George Kittle signing his own long-term extension for five years and $75 million, averaging $15 million per year.
Kelce's previous five-year, $46.8 million deal in 2016 has been a bargain for the Chiefs, as he's carried cap hits of roughly $5.5 million, $10 million and $10.7 million in the first three years of the deal. He was slated to make $11.2 million and $9 million in 2020 and 2021.
Albert Breer of Sports Illustrated first reported that there is no new money in 2020 for Kelce, but that he'll see a "sizable guaranteed roster bonus due early next year." Breer later specified that it will be $7 million on April 5.
Mike Garafolo of NFL Network later reported Kelce's cash flow over the course of the deal, giving the Chiefs lower hits in 2020 and 2022, with the largest hit coming in the final year of the deal, which would likely be minimally guaranteed.
Arrowhead Report's Conner Christopherson took a look at the Chiefs' options with Kelce's deal back in July when he explored how the Chiefs can slide below a potential $175 million salary cap in 2021:
Other veterans like Travis Kelce and Mitchell Schwartz carry salary cap hits that are probably lower than their real value in 2021, having a cap hit of $9 million and $10 million respectively. New deals for them could lower their 2021 cap hit potentially, but it’d shave only a few million off, unless the contracts have very creative structures.
We now know that the Chiefs actually added $4.25 million in added money in '21, while bringing a very low cap hit in the first new year of the extension.
Ultimately, the Chiefs locked up another one of their most vital offensive weapons while also delivering a nice payday for the team's star tight end, likely leading him to a path where he can spend his entire career in Kansas City.
As if any of the reports were still in question, Patrick Mahomes took to Twitter to celebrate and, in a way, confirm the news.
Friday Update: The Chiefs and Kelce have confirmed the deal over social media. Click here for the Chiefs' tweets celebrating the extension for their star tight end.