NFL revenue loss could affect George Kittle contract extension

The 49ers want to get George Kittle’s extension done, but they may wait until they know the financial effects of COVID-19 on the NFL.

The NFL’s return from its shutdown for the COVID-19 pandemic won’t spell the end of league’s battle with the virus’ impact. Even if players and coaches return to practice facilities in time for training camp, and the regular season resumes as normal, there’s still no guarantee that fans will be allowed to attend games. The financial fallout from that could wind up impacting the 49ers while they negotiate a long-term contract extension with All-Pro tight end George Kittle.

San Francisco has managed to avoid the adversity that’s come with the NFL’s offseason shutdown. They’ve held online meetings, and players have met individually for workouts. They won’t be able to avoid the financial uncertainty that’s surely going to color how they negotiate with Kittle.

While football in an empty stadium may compare to what Ravens quarterback Lamar Jackson called an intense practice, it’ll also have a significant financial impact. In a Monday call with agents, NFL Players Association executive director DeMaurice Smith said the league would lose at least $3 billion if the season proceeds without fans. That loss could affect the salary cap into 2021 and beyond depending on how negotiations between the NFLPA and the NFL shake out per NFL Media’s Tom Pelissero.

A situation where the cap dips or stays stagnant changes the long-term salary cap calculus for the 49ers’ front office. It’s much easier to start dolling out high-priced deals when the cap is expected to climb several million dollars. That free spending becomes more difficult with the cap potentially falling since it’ll likely require some restructuring of other, already-signed contracts.

The 49ers are sitting with $15,645,549 in salary cap space according to Over the Cap. They’re projected to have more than $49 million available next year against a $215 million salary cap. The odds the cap climbs to $215 million are slim after a season where teams don’t get any revenue from fan attendance.

It’s difficult to guess where the cap might wind up next year, which may be why the 49ers and Kittle are still far apart on a deal. Regardless of the numbers each side is fighting for, the lack of certainty on the cap will surely impact how San Francisco carries out all their business. Kittle is just the most high-profile, high-dollar contract they’re working on.

There doesn’t appear to be a lack of mutual interest. General manager John Lynch has expressed a desire to “find a sweet spot” in a contract that pays Kittle more than any tight end in league history. That was before a pandemic hit and ground the sports world to a halt.

It’s easy to see a scenario where the 49ers wait until they have a better grip on next year’s cap before moving on in their negotiations with Kittle. He’s still under contract for the 2020 season — the final year of his rookie deal — and the franchise tag is always an option. However, Kittle’s growth into one of the most dominant offensive players in the league makes him worth locking into a multi-year deal sooner rather than later. Until the 49ers know exactly how much cap space they’re working with though, they may hold off on making any long-term commitments, much less one that pays out top wide receiver money.

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