Offseason Report Card: How to Grade Dalton Schultz Contract?

The Houston Texans haven't made a ton of big moves, but free agency is yet to begin. Was extending Dalton Schultz enough to earn ESPN's praise?

The Houston Texans extended tight end Dalton Schultz ahead of free agency, though they likely didn’t see it dominating the news cycle as it had.

After signing his extension, Schultz joined “The Pat McAfee Show” to discuss a flurry of topics, most notably his comparison of the Texans and Dallas Cowboys. In calling the Cowboys’ weight room a zoo, he set off a media firestorm and earned himself some insults from Dallas fans and former teammates alike.

However, there are many worse reasons to be in the football world’s crosshairs. Houston certainly feels good about their newly signed deal, but how has it played out among NFL analysts?

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

ESPN has graded the biggest moves of the NFL offseason, of which Schultz is included.

His three-year extension is worth $36 million and $23.5 million guaranteed and earned a B+ grade.

“Keeping a strong collection of skill players around quarterback C.J. Stroud is a great way to build a winning team, and the Texans prioritized his favorite middle-of-the-field target,” Matt Miller said. “Schultz, who will be 28 in July, is fresh off a resurgent season in which he caught 59 passes for 635 yards and five touchdowns during his first season in Houston.”

The Texans made Schultz the 11th-highest-paid tight end in the league by average annual value – 12th by total money. Rather than setting the market or simply overpaying, Houston spent in line with Schultz’s production. He ranked between 10th and 12 among tight ends in targets, receptions, yards, and touchdowns this past season.

“For every free agent signing, I look at the players and draft capital required to replace the player if he walked,” Miller continued. “The Texans would have to use pick No. 24 overall in Round 1 to replace Schultz's value as a receiver and in-line target. Now the front office is free to use that pick shoring up the defensive line or secondary while keeping its No. 2 receiver locked up.”

Top Targets For Texans Entering Free Agency

As much as a first-round rookie or big-name receiver would be exciting, keeping Stroud’s preferred targets in town is a smart decision. Receivers Nico Collins and Tank Dell were excellent in 2023, and Schultz filled his role well as a dependable target.

They have more to gain from upgrading significantly from a weakness than a smaller improvement in an already strong passing attack. Expecting a third receiver and a new running back makes sense, and could very well be acquired with a lesser free-agent deal or a mid-round draft pick.