Texans Sign Tight End Dalton Schultz To Three-Year, $36 Million Deal

The Houston Texans have locked up Dalton Schultz on a long-term deal ahead of the free agency period.

Dalton Schultz isn't leaving the Lone Star State after all. 

The Houston Texans and Schultz have agreed to terms on a three-year, $36 million contract, a source close to the situation confirmed to TexansDaily.com Tuesday afternoon. Schultz will earn $12 million annually through the 2026 season. Of the $36 million, $23.5 million is guaranteed. 

The new was first reported by NFL Network.

Schultz, who signed a one-year deal last offseason after spending five seasons with the Dallas Cowboys, served as a reliable downfield target for Offensive Rookie of the Year C.J. Stroud. He caught 59 passes for 635 yards and five touchdowns on 88 targets. 

Houston Texans tight end Dalton Schultz (86) celebrates receiving a pass against the Tennessee Titans during the fourth quarter at Nissan Stadium in Nashville, Tenn., Sunday, Dec. 17, 2023 :: Andrew Nelles / The Tennessean / USA TODAY NETWORK

His biggest moment of the season came in the AFC Wild Card round matchup against the Cleveland Browns, where his 37-yard touchdown reception helped Stroud become the fourth rookie in league history to throw for 200-plus yards and three touchdowns in a postseason game.

Schultz also was dominant in Week 9's comeback win against the Tampa Bay Buccaneers where he hauled 10 catches for 130 yards and a touchdown, his lone 100-yard performance of the season

Sources told Texans Daily last week at the NFL Scouting Combine in Indianapolis that Schultz was expected to return for another season. He wanted to remain a stable weapon for Stroud and was exceptional as a receiving threat in Bobby Slowik's offense. 

"Dalton did a really nice job for us in the passing game when we were in those two-minute drives where we were able to win a few games, Dalton really showed up," said Texans coach DeMeco Ryans last week in Indianapolis. "Situational football. Third down. He showed up making big catches for us." 

Everything, however, would come down to pricing. Sources indicated that if a long-term deal couldn't be reached by Tuesday's 4 p.m. deadline, Houston could use the franchise tag and pay him $11.3 million for the 2024 season. 

"We'll see what happens with Dalton in free agency, but I'm very proud of what he did for us last year," said Ryans. 

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Schultz, 27, was going to command a significant price on the market in a weaker tight end free agency class. Other names hitting the market include Patriots' Hunter Henry, Seattle's Noah Fant, and Los Angeles' Gerald Everett as top options. 

One source told Texans Daily last week that while the tight end class has talent, there would be a drop-off following Georgia's Brock Bowers and Texas' Ja'Tavion Sanders. 

Stroud now has his long-term tight end to pair alongside Tank Dell and Nico Collins. The Texans look to be the front-runners in the AFC South behind a breakout passing attack that finished seventh in total yards. 

Free agency for Houston will begin on March 13.