On Monday, it was reported that K.C. Chiefs wide receiver Tyreek Hill was offered a chance to restructure his contract like his other star teammates—Chris Jones, Patrick Mahomes, and Travis Kelce. But unlike his teammates, Hill turned down the Chiefs offer.
Tyreek Hill explains why he turned down the Chiefs’ request to restructure his contract
— B/R Gridiron (@brgridiron) March 22, 2021
(via @RCFOX4KC, @PatMcGFox4KC)pic.twitter.com/YGyc6vB7JC
These restructures are often a win-win. The cap hit decreases significantly, but the player still sees the same cash in his bank account. This then allows the Chiefs to use that additional cap space to sign better players.
Most deals have automatic conversion rights, so this is interesting, especially considering Hill's big roster bonuses would imply those provisions are in there
— Brad Spielberger, Esq. (@PFF_Brad) March 22, 2021
Wouldn't be surprised if KC wanted to add void years onto the end of Hill's deal (which they can't do unilaterally) https://t.co/WNariKn6XK
Further, as referenced above, most contracts can be converted without the player’s consenting. But it seems likely that Hill’s potential restructure would have included void years (a way to lower the cap even more by tacking on additional years after the contract) which means Hill and his agent need to sign off on the change.
The attempted use of void years signals something important about Hill’s’ situation—he is a free agent after the 2022 season. If you simply restructure Hill’s contract in 2021 it pushes most of the money into 2022 meaning his cap hit would be very large for that next season. Using void years, you can spread that money further out, leaving the cap hit small in both seasons. But those void years are not actual contract years—Hill would still be a free agent after 2022. The other three players that restructured all have long contracts, where spreading out the money on those seasons is a lot more viable.
Tyreek Hill declined to restructure his contract for the K.C. Chiefs.
But that still does not explain why Hill is refusing this. He would still make the same amount of cash in the next two years, so it would simply be hurting the Chiefs less in terms of cap space. For Hill this is not just about the next two years, however. He is planning the rest of his career. After the 2022 season, he will be a 29-year-old free agent looking to sign another big contract. It is likely that Hill wants to stay in K.C., and I surmise that this standoff is Hill (and more specifically his agent) looking to encourage the Chiefs to work on an extension.
For many players, having the security of a future contract—especially as they age towards 30—is extremely important. It creates a safety net when it comes to injury and other situations. An extension is another chance for the Chiefs to manipulate the salary cap, but it gives Hill more security in his own career.
As Hill said in the video above, he leaves these negotiations to his agent. He focuses on football. His agent takes care of the business. His agent knows the Chiefs need cap space and he also knows Hill’s contract is one of the best ways they can create that space. This gives Hill leverage in the negotiations now and in the future that he would not have if he restructures. It also makes sense that Hill’s agent, given the history of issues off the field, would try to capture as much certainty as possible.
It is not accurate to compare Hill’s situation to that of Patrick Mahomes or Travis Kelce and claim that he is being selfish. Both of their contracts are much longer meaning they have much more certainty going forward. The best way to remedy this situation would be to figure out an extension with Hill. It would allow Brett Veach to place the cap money more efficiently and lock up one of the best offensive weapons in the league long-term.