Kyle Shanahan and the San Francisco 49ers have just gotten themselves into a costly situation following a major roster decision. The move to release wide receiver Brandon Aiyuk brings serious financial consequences that could affect the team’s plans this offseason. As the front office prepares for the offseason split, the focus shifts to the Niners’ cap flexibility.

Kyle Shanahan’s team is ready to part ways with wideout Brandon Aiyuk, but the fallout is far from simple. The team offered him a huge four-year, $120 million contract extension just last year. The deal included a $23 million signing bonus and $76 million in guaranteed money while carrying a dead cap charge of $29.59 million. So, if the 49ers release him before June 1, they will have to absorb such a massive cap penalty. 

Another option for San Francisco would be to release the receiver after June 1. It will allow them to spread the dead cap hit to $13.325 million in 2026 and $21.247 million in 2027. Meanwhile, there’s a silver lining in this situation. In July last year, San Francisco voided nearly $27 million in future guarantees. General manager John Lynch believes it will financially allow his team some breathing room. Interestingly, the development comes after he confirmed the breakup with Aiyuk at the end-of-season news conference on Wednesday.

“I think it’s safe to say that he’s [Aiyuk] played his last snap with the Niners,” Lynch said via ESPN‘s Adam Schefter. “It’s unfortunate. A situation that just went awry. And I will look long and hard at what could have been done differently, but sometimes it just doesn’t work out. And I think that this was a case where that happened.”

He also revealed that the team will release or ship him in “due time,” putting an end to the player’s six-year stint with the organization. The move isn’t surprising when considering how the relationship between Aiyuk and the Niners turned sour over the past few months. Here’s a look at how things went downhill for both parties.

Where did things go wrong for Kyle Shanahan’s WR?

It all began in the offseason of the 2024 season during intense negotiations for Brandon Aiyuk’s contract. While they extended his contract, the optimism was short-lived after he and Shanahan had an uncomfortable exchange at practice less than a month later. It was because the wideout violated the dress code. He turned up in red shorts while his teammates were in the required black ones.

His on-field situation made things worse. After missing the training camp, Aiyuk looked out of sync early in the season. He couldn’t play the full season after he tore his ACL, MCL, and meniscus, making just seven appearances. Before his exit, he hadn’t punched in a single touchdown and was averaging just 58.43 receiving yards per outing. The 49ers wanted to trade him last offseason.

But his injury and massive contract situation could have made him less lucrative to other franchises. Later, Aiyuk skipped multiple rehab sessions, further escalating the tension. In July 2025, they had a full-blown fallout when San Francisco voided the remaining guarantees in Aiyuk’s contract. After that, the 27-year-old stopped visiting the facility and cut off communication. Shanahan weighed in on the situation, making his frustration clear.

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“I’d say it officially stopped for me when the last time I tried to get ahold of him and couldn’t and then tried a couple more times and still couldn’t,” he said. “…And eventually there’s not much of an explanation because it’s really hard for us and anyone else to understand, and that’s why it’s something I’ve never seen in 22 years of coaching. It’s unfortunate and it’s confusing because it’s confusing for all of us, but it eventually becomes ‘it is what it is.’”

Later in December, the team placed him on injured reserve, and he couldn’t play a single snap this season. As Aiyuk comes off a confirmed split and an on-field break, his future indeed looks uncertain. As for the Niners, they look forward to the offseason after their frustrating 41-6 divisional loss to the Seattle Seahawks.