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Chiefs TE Kelce restructures contract to create $5.6 million against salary cap

Kelce emerges as team leader, focused on new season
Posted at 1:57 PM, Mar 17, 2021
and last updated 2021-03-17 14:57:29-04

KANSAS CITY, Mo. — The NFL salary cap dropped more than $15 million due to COVID-19-related revenue decreases from 2020 to 2021.

That’s made for some interesting salary-cap gymnastics across the league, including news Wednesday that Chiefs tight end Travis Kelce is restructuring his contract to create more room.

Kelce signed a four-year contract extension worth more than $57 million in August.

That deal calls for a $5.25 million base salary in 2021 with a $7 million roster bonus, creating a $13.25 million cap hit for the upcoming season, according to Over the Cap.

Kelce has agreed to convert that roster bonus into a signing bonus, according to “4th & 1” podcast analyst and 41 Action News Sports Producer Nick Jacobs, which allows the Chiefs to spread the $7 million bonus over the remaining years of the contract through 2025.

The financial maneuvering should drop Kelce’s cap number for next season down to $7.55 million after workout and per-game roster bonuses, which frees up an additional $5.6 million against salary cap room for the 2021 season.

Kansas City must be under the $182.5 million salary cap for 2021 by 3 p.m. Wednesday when the new league year officially begins.

The Chiefs made a similar move last week with quarterback Patrick Mahomes’ contract, which created $17 million in cap space.

Kansas City used some of that savings to shore up its offensive line, agreeing to a five-year contract with former New England Patriots left guard Joe Thuney.

Thuney’s $80 million deal with the Chiefs can’t become official until after the 2021 NFL year begins and the free-agent signing period opens Wednesday afternoon.