Travis Kelce’s new contract with the Chiefs was reported as a three-year, $54.7 million deal, but that’s not the reality in practical terms. Jamie Squire / Getty Images
March 25, 2026 10:22 am EDT
Kansas City Chiefs tight end Travis Kelce’s new contract was reported by NFL Network this week as a three-year, $54.7 million deal, but the length and that dollar value do not reflect the reality of the situation.
The truth: Kelce essentially agreed to a one-year, $12 million guaranteed deal, according to a league source, with additional language tacked on to help the Chiefs spread out that cost over the next three seasons.
K.C., in this instance, utilized the NFL Collective Bargaining Agreement’s “50 percent” rule. Without getting too lost in the tedious details, it’s a maneuver that allows teams to prorate a player’s salary evenly over all the years of a player’s contract.
It’s the reason — technically — that this is a three-year deal for Kelce. By structuring his contract this way, the Chiefs’ bottom line will see Kelce’s deal count $4.9 million against the salary cap this season, then $3.55 million in 2027 and $3.55 million in 2028.
Why then was Kelce’s contract reported to be valued at $54.7 million? It’s because Kelce — again, technically — is scheduled to receive a $40 million bonus in 2028 if he remains a part of K.C.’s roster on June 8, 2027. That will never happen. Kelce will either retire, be released or will be playing under a new contract before that date hits, meaning that bonus — for real-life purposes — doesn’t exist.
This Kelce move does signal a pivot for the Chiefs. In the past, K.C. has not included provisions to spread a player’s cap charge over years when that player won’t be on the team anymore; this practice puts stress on future seasons as the team has to then deal with “dead money” that is going to players no longer on their roster.
Why the change with Kelce? He seemed to be a unique case, given his stature with the team as he nears the end of his Hall of Fame career. This outlet also provided the Chiefs with the best opportunity — in this instance — to maintain financial flexibility for this year, but also in the future.
Mar 25, 2026
Connections: Sports Edition
Spot the pattern. Connect the terms
Find the hidden link between sports terms
Play today’s puzzle