The 49ers and tight end George Kittle agreed to a lucrative five-year contract extension, yet it still creates some complications for the Niners.
On Thursday, news broke the San Francisco 49ers and superstar tight end George Kittle were wrapping up what was to become a five-year, $75 million contract extension, keeping the 2019 first-team All-Pro in the Bay Area through 2025.
The news put an end to an offseason-long standoff between the Niners front office and Kittle’s camp, which had more than enough difficulty determining Kittle’s value to the team, both with regards to the tight end market and what he brings to the team.
Needless to say, Kittle’s new contract shatters the previous market for tight ends. Cleveland Browns tight end Austin Hooper recorded an annual average value of $10.5 million, and now Kittle is going to be receiving $15 million annually.
$40 million of that is guaranteed.
Extending Kittle was a no-brainer. He’s easily the team’s top offensive weapon, and not just for his pass-catching abilities. Kittle also sells tickets, merchandise and gives San Francisco plenty of much-needed star power.
But there are going to be ramifications, especially in uncertain coming years where the COVID-19 pandemic has already created unknown problems for the NFL revenue stream and forthcoming salary caps. Already in 2021, the cap is expected to drop from the near-$200 million down to $175 million.
The final details of Kittle’s contract aren’t yet known, and one might bank on the 49ers delaying some of Kittle’s cap hits could be delayed into years beyond 2021, essentially putting off some of the could-be financial problems.
Yet with the Niners already pressed up against the cap entering 2020, these three potential factors could be some significant hurdles general manager John Lynch and Co. have to overcome.
No. 3: 49ers will be over the salary cap in 2021
Strictly from a dollars and sense standpoint, the Niners are now faced with some tough salary-cap navigating challenges between now and the start of the league’s new year in spring of 2021.
Again, we don’t know all the details of George Kittle’s contract. But NBC Sports Bay Area’s Matt Maiocco reported Kittle received an $18 million signing bonus. Prorated over the life of the contract, Kittle is going to at least receive $3.6 million in 2021. And that doesn’t include any of his other guarantees, bonuses or base salary. It’s helpful to get closer to the $15 million annually Kittle is going to receive.
Even if we meet somewhere in the middle, let’s say around $10 million for 2021 alone, that would put San Francisco’s current financial obligations to players that year at just over $180 million. Currently, according to Over the Cap, the 49ers have $170,735,085 in total cap liabilities next season.
And that doesn’t include the approximately $7 million to $10 million required to sign a rookie NFL Draft class in 2021.
The Niners are going to have to come up with a combination of different decisions, which include executing some cap casualties, restructuring other players’ deals and letting pending free agents walk.
Needless to say, the 2021 roster could look vastly different than the one expected to take the field this season.
No. 2: 49ers will have to say goodbye to some key players
San Francisco has more than a handful of notable free agents set to hit the open market after this season:
- CB Richard Sherman
- SS Jaquiski Tartt
- OT Trent Williams
- DT D.J. Jones
- FB Kyle Juszczyk
- CB K’Waun Williams
- CB Emmanuel Moseley
- RB Tevin Coleman
- RB Jerick McKinnon
- CB Ahkello Witherspoon
- WR Kendrick Bourne
Re-signing any of these players will already be tough in the wake of George Kittle’s extension and the 49ers having roughly $180 million committed in 2021 against a $175 million cap.
To get below the threshold, John Lynch is likely to make some tough cap casualties happen. Moving on from veteran kicker Robbie Gould, who’ll count for $5.25 million against the cap next year, is a strong likelihood. So is left guard Laken Tomlinson, who’s scheduled to earn up to $6.25 million.
San Francisco is also unlikely to be able to afford luxury defensive pieces, namely EDGE Dee Ford and linebacker Kwon Alexander, whose combined contracts in 2021 are set to command up to $34.1 million.
Not everyone listed here will be gone, per se. But a good chunk of those players will be.
No. 1: Much more pressure for 49ers to hit on NFL Draft picks
The Niners are banking on the salary cap increasing significantly beyond 2021, which is just as big a possibility as it remaining stagnant for the next few years. After all, the team has to think about long-term deals down the road for cornerstone players like linebacker Fred Warner, wide receiver Deebo Samuel, offensive tackle Mike McGlinchey and EDGE Nick Bosa.
One of the reasons San Francisco was so successful as of late, however, is because all those players are still on their respective rookie contracts. Kittle is, too, albeit only for the final year of his initial contract in 2020.
More from George Kittle
- George Kittle pokes fun at local 49ers content creators
- George Kittle has a future in pro wrestling after NFL career
- George Kittle wants to be a WWE wrestler, and we’re here for it
- Twitter loses its mind after George Kittle catch vs. Cowboys
- Multiple 49ers players among top donors to Damar Hamlin’s foundation
But each player listed signifies two key aspects. John Lynch succeeded with those picks, and all are essential pieces for the team’s overall success. That’s important, and it won’t change for the 49ers to continue grabbing and developing players well via the NFL Draft in coming seasons.
Yet one of the more important elements to note here is just how valuable those initial rookie contracts are. If the Niners were paying Kittle an annual premium of roughly $15 million per season, it’s not hard to play around with the numbers on other players to see who might have to go.
In addition to landing those rookie contracts for impact players, hitting on draft picks will be a must for Lynch and Co. because San Francisco won’t have as big an opportunity to land notable free-agent pickups in coming seasons. While it’s impossible to gauge what the market will look like, including salary caps beyond 2021, it’s safe to assume the 49ers are going to need to rely upon their draft selections.
Not trading off picks or spending money on big-name free agents.