Travis Kelce signed a new deal with the Kansas City Chiefs on Monday, quashing all rumors about his retirement in the 2026 season. As per NFL Network's Ian Rapoport, it is a 3-year, $54.735 million deal that can be worth up to $57.735 million ($18.245 million average). The first year is $12 million plus 3 million in incentives.
Kansas City Chiefs tight end Travis Kelce takes off his helmet during warmups before an NFL football game against the Denver Broncos (AP)
{{^htLoading}} {{/htLoading}}
While the contract says three years, it really isn't. The structure is more complicated. Only guaranteed money is for one year.
What is the $40 million catch?
Much of the deal’s value, more than $40 million tied to the final two years, is not expected to materialize. NFL reporter Ari Meirov revealed why.
“If Kelce wants to continue playing after this season, the deal will be renegotiated next year. As currently structured, it’s set up for this to be his final season, after which he would retire — allowing the cap hits to be spread out over those added years," he wrote on X, platform formerly known as Twitter.
“For context and clarity, Travis Kelce’s contract with the #Chiefs includes a trigger date next June that exists strictly for cap purposes. He does not actually have another two years and $40M+ coming to him after this season.”
Incentives also in doubt
{{^htLoading}} {{/htLoading}}
{{^usCountry}}
Even Kelce’s 2026 incentives may be difficult to reach. AtoZ Sports’ Charles Goldman noted: “I’d wager [his $3 million in contract incentives] will be considered NLTBE (Not Likely To Be Earned) by the NFL based on the Chiefs’ results of the 2025 season.”
{{/usCountry}}
{{#usCountry}}
Even Kelce’s 2026 incentives may be difficult to reach. AtoZ Sports’ Charles Goldman noted: “I’d wager [his $3 million in contract incentives] will be considered NLTBE (Not Likely To Be Earned) by the NFL based on the Chiefs’ results of the 2025 season.”
{{/usCountry}}
Goldman further added that the Chiefs have made a ‘unicorn contract’. allowing them to spread cap hits into future seasons without committing to paying the full value.
If Kelce retires or is released after the 2026 season, the remaining years would be voided, leaving the team with manageable dead-cap hits in 2027 and 2028.
Cap impact remains low
Because of the creative structure, Kelce’s cap hit for 2026 is relatively modest at just under $5 million. Future cap charges would sit around $3.5 million annually if the deal voids as expected.
{{^htLoading}} {{/htLoading}}
This gives the Chiefs flexibility while still keeping their star tight end for at least one more season.
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.
Catch all the latest Sports News, scores, and highlights in one place. Stay updated with real-time coverage of your favorite games and athletes along with Lionel Messi latest updates.
Catch all the latest Sports News, scores, and highlights in one place. Stay updated with real-time coverage of your favorite games and athletes along with Lionel Messi latest updates.
Home/Sports/Us Sports/Kelce receives $40M bad news after signing Chiefs contract; ‘deal to be renegotiated’
{{^htLoading}}
Advertisement
{{/htLoading}}
SHARE THIS ARTICLE ON
{{#usCountry}}{{/usCountry}}
Hindustantimes wants to start sending you push notifications. Click allow to subscribe
