As expected, the Kansas City Chiefs have not been active in free agency after a monster contract to keep defensive tackle Chris Jones with the team, likely for the remainder of the star’s career.
The Chiefs did retain linebacker Drue Tranquill’s services with a moderate, multiyear contract. General manager Brett Veach’s highest profile signing from outside the organization has been giving former Arizona Cardinals and Baltimore Ravens wide receiver Marquise “Hollywood” Brown a one-year deal worth up to $11 million.
All of Kansas City’s other signings of the new league year, however, have came with a league minimum base salary. Veach has, as usual, tapped into the veteran salary benefit to fill the roster. Like most years, the Chiefs also will designate a Four-Year Qualifying Player to keep a familiar face in Kansas City.
Let’s look at what these signings might say about the roster security of some recently signed players.
The 2024 league minimum salary will be $1.125 million for players with four or more accrued seasons. It increases to $1.21 million at seven accrued seasons. The Veteran Salary Benefit (VSB) allows such players to earn their minimum base salary — at either qualifying amount — and only count against the salary cap at the minimum salary for players with two credited seasons ($985,000 for the 2024 league year). Players can receive a bonus of up to $167,500 without losing the benefit.
Since the start of free agency, the Chiefs have signed these players to VSB contracts: tight end Irv Smith Jr., defensive tackle Mike Pennel and safety Deon Bush.
While we do not yet have terms of defensive tackle Derrick Nnadi’s new contract with the Chiefs, it is likely he has signed a VSB contract for the second consecutive season.
In the past, the Chiefs have generally given the extra compensation as a signing bonus. Per Spotrac, however, none of these players have a signing bonus listed. Bush and Smith have the $167,500 listed as a roster bonus — meaning they must actually make the team out of training camp to see the money. Pennel appears to have received no bonus money.
All players have some guaranteed salary of their veteran minimum, led by Bush’s $500,000. However, the veteran had a $350,000 guarantee last offseason and still was cut out of training camp. He would later rejoin the active roster after spending most of the year on the Chiefs’ practice squad. Pennel and Smith each have slightly less than $400,000 guaranteed. While we do not know the specifics of individual contracts, it is likely that money potentially earned on the practice squad, if cut, would negate the small salary guarantees.
As shown with Bush last season, a small salary guarantee on a VSB contract likely secures a place on the practice squad — but not necessarily the active roster. With the Chiefs reportedly talking to multiple tight ends earlier this month at the NFL Scouting Combine in Indianapolis, Smith’s presence will likely not affect Kansas City’s draft plans at the position.
Defensive tackle will be interesting to watch in training camp with Pennel and Nnadi likely on similar contracts. In addition, veteran defensive tackle Isiah Buggs — who signed a reserve/future contract with the Chiefs last month after joining their practice squad for the postseason — also received a small bonus and salary guarantee. Depending on what happens with next month’s draft, Buggs, Nnadi, and Pennel possibly will compete in training camp for one or two spots in the defensive line rotation.
On the other hand, we can be very confident of one defensive tackle signing who will make Kansas City’s 2024 roster.
Four-Year Qualifying Player
AFC Championship – Kansas City Chiefs v Baltimore Ravens
Photo by Rob Carr/Getty Images
Last week, we learned that defensive tackle Tershawn Wharton would be returning to Kansas City on a fully guaranteed one-year contract. As the terms became available, we learned that Wharton would be receiving the Chiefs’ Four-Year Qualifying Player funds. This designation gives teams an uncapped allowance ($1.45 million for 2024) in order to retain one or two players who have been with a team uninterrupted for four consecutive seasons. The Chiefs are giving Wharton the entire amount, which added to his $1.125 million minimum base, and a $167,500 signing bonus allows him to earn $2.74 million in the upcoming season. His cap hit, however, will only be $1.29 million.
The Chiefs use this cap-saving technique almost annually, with guard Nick Allegretti receiving the funds in 2023. It has also generally meant a swan song in Kansas City. Wide receiver Demarcus Robinson—2020’s Four-Year Qualifying Player—is the last recipient to return to the Chiefs in the following season. With his compensation guaranteed, we can put Wharton firmly onto roster projections, barring health.
The bottom line
While the Chiefs carry cornerback L’Jarius Sneed’s $19.8 million franchise tag number (very possibly into the season), spending will likely be limited. The Chiefs may add a bigger name as free agency drags on and prices drop, but most remaining moves will likely be VSB contracts.
Veach’s contract structures of this offseason show that such players will need to stay hungry and compete to be a part of the Chiefs’ upcoming “three-peat” bid.
