Here’s why the Chiefs hit a home run with the Sammy Watkins deal

Sammy Watkins and the Kansas City Chiefs agreed to a restructured contract that is a win-win for everyone involved.

If you didn’t already have money on the Chiefs dominating the NFL next season, make the bet now.

Yahoo! Sports senior columnist Terez Paylor reported on Friday morning that the defending champion Kansa City Chiefs had reached an agreement with wide receiver Sammy Watkins on a contract restructuring that guarantees the former first round pick will be in Kansas City through the end of the 2020 season.

For months, the speculation has been that Chiefs general manager Brett Veach would be forced to trade or release Watkins, based on his owning a $21 million cap hit in 2020. Even as late as yesterday, head coach Andy Reid would not commit to Watkins being on the roster for the upcoming season.

The restructuring has several interesting elements for both parties that ultimately make the move a win-win for both the Chiefs and Watkins.

For starters, the move gives Kansas City an additional $5 million in cap space for the upcoming season. This is important given that the Chiefs reportedly had only $177 in cap space before the move, and still need to sign draft picks, extend defensive tackle Chris Jones, and work out an extension for Super Bowl LIV MVP Patrick Mahomes. (READ: this indicates this will not be the last cap saving move for the Chiefs.)

NFL Network reporter Mike Garafolo reported contract incentives as follows:

• 8TDs and team makes playoffs: $750k
• 65 catches + playoffs: $750k
• 800yds + playoffs: $750k
• AFC Champ win (50% snaps in-game): $1.25m
• 65 catches + AFC Champ: $1.25m
• 800 yds + AFC Champ: $1.25m”

Given the Chiefs trajectory, one would assume that many of these incentives are within reach for the former Clemson standout.

Perhaps the most interesting element of the entire deal is that the Chiefs gave Watkins a rare ‘no-trade’ clause. This would appear to be basically the only incentive Watkins was given to restructuring.

But, there is brilliance in the move for both Veach and the Chiefs, and for the standout wide receiver.

Why this deal is a home run for the Chiefs

Kansas City could never have traded Watkins with his projected cap hit. There were rumors of perhaps interest from the Philadelphia Eagles, but they never had any legitimacy and never rose to the level of passing the make-sense test. Even if the team had found a suitor, the money would have deterred teams from giving up significant compensation for the star pass catcher. By restructuring without extending, the Chiefs ensure that when Watkins hits the market next offseason (at still just 27 years old), that they’re in line for a nice compensatory pick for the wideout (likely a 3rd round selection).

Second, Kansas City’s other option was to cut Watkins. It, too, was basically a non-starter. The Chiefs would have eaten $15 million in dead cap space with a release, according to Over the Cap. Because they were able to agree on this restructured deal, it basically costs the Chiefs only $1 million in cap space to keep Watkins, as the new deal carries a $16 million cap hit. This makes the move a no-brainer for Veach and Reid.

Third, Kansas City is preparing like a team that knows there will be little-to-no offseason. What I mean is, they are working as hard as possible to bring the whole band back. This is a brilliant move, as if there is no offseason, cohesion and continuity will be of the utmost importance.

If the goal is to simply run it back for the Super Bowl Champions, they’re well on their way on the offensive side of the football.

For Watkins, the restructuring makes sense because of the no-trade close. The writing is on the wall for him that he will not be in Kansas City after the 2020 season. So, he needs to best position himself for free agency. As mentioned earlier, he will be only 27 during the next offseason, so a productive and healthy 2020 season should put him in line for a healthy payday, likely his final big one, when he signs his next contract.

If he’s positioning himself for a one year, prove it type scenario, then why wouldn’t he want to be in Andy Reid’s offensive, with Travis Kelce and Tyreek Hill, with the best quarterback in football throwing him the ball? This should assure Watkins his best chance at a superior season, and subsequently, help him secure the bag next Spring.

In two seasons with the Chiefs, Watkins has played in 22 regular season games, and has 1192 yards and six touchdown catches. But he starred during the team’s Super Bowl run, garnering 14 receptions for 288 yards and a score in the team’s three games.

As a result of this deal, if Watkins is able to stay healthy, he’ll be hugely productive in a highly prolific offense, and he’ll sign another huge contract in 2021. That makes it a major win-win for both Watkins, and the Chiefs.