How Travis Kelce's Contract Impacts Chiefs' 2025 Salary Cap After TE's Return

Travis Kelce confirmed that he'll be returning to the Kansas City Chiefs for the 2025 season on Thursday, via the tight end's New Heights podcast.

Kelce will have a $19.8 million cap hit for the 2025 season, giving the Chiefs roughly $5.8 million in cap space (via Over the Cap).

Kansas City also informed guard Trey Smith that the team plans to use the franchise tag on him, per ESPN's Adam Teicher. The Chiefs are now obligated to offer him a one-year contract worth about $23.4 million, but they can still give him a long-term deal or trade him.

Kansas City took the latter approach with cornerback L'Jarius Sneed during the 2024 offseason, trading him to the Tennessee Titans after placing the franchise tag on him.

That may not be the case with Smith, as NFL Network's Ian Rapoport revealed that the Chiefs "hope to do a long-term deal" with the guard.

Kansas City's current cap situation doesn't give the front office much room to make moves in free agency, as its cap space ranks No. 24 among all NFL teams (via Over the Cap).

There are avenues to gaining some more financial flexibility, though. Spotrac's Michael Ginnitti noted that the Chiefs can open up just over $10 million by converting Kelce's roster bonus to a signing bonus.

While the 35-year-old failed to reach 1,000 receiving yards for the second consecutive year in 2024, he remained one of the best players at his position. His 823 receiving yards were the fifth-most among tight ends last season.

Kelce's 97 receptions also ranked No. 12 in the NFL and No. 3 among tight ends.

As the Chiefs attempt to bounce back from their 40-22 loss to the Philadelphia Eagles in Super Bowl LIX, their star tight end announced that he'll be returning for his 13th season.