A few thoughts on this signing:

I’m fine with the contract amount and length
The franchise tag for Schultz would have been around $12 million, if the Texans had decided to use it as a place holder. As it turns out, Schultz gets $12 million as his average annual value. I’m fine with the length and value of the deal. If Schultz had walked, tight end would have become a glaring position of need. Given his importance in the passing game, and the chemistry Schultz has with Dalton Schultz, a deal that puts him just outside the top ten at the position feels about right.

This is another HUGE brick in the C.J. Stroud Continuity Wall
DeMeco Ryans has made it clear how thrilled he is that offensive coordinator Bobby Slowik and QB coach Jerrod Johnson are returning next season. That type of continuity is massive for Stroud, who doesn’t have to learn any new verbiage or adapt how he communicates with his coaches. The same can be said for actual teammates. The more that return, the more potential for improvement to an elite level in 2024. Stroud clearly developed great chemistry with Schultz, and they should hit the ground running in 2024.

Tight end would have looked rough without Schultz, but now that he’s signed, don’t stop there!
After Schultz, the tight ends of note on the Texans’ roster are Brevin Jordan and Teagan Quitoriano. Jordan is more of a hybrid H-back type, and really only started to develop consistency toward the end of last season, and he’s entering his contract year. Quitoriano can’t stay healthy. He is heading into his third season. The Texans needed to retain Schultz so tight end wasn’t such a glaring need in free agency next week. One thing I would add to this — I would not let re-signing Schultz stop me from drafting a tight end either. Specifically, if Georgia phenom TE Brock Bowers falls to within shouting distance of the Texans in the first round next month, I’d look to trade up and add another elite weapon for Stroud.

This sends a great message to free agents who hit the market next week
Even with all this well documented salary cap space the Texans have to utilize next week in free agency, I would still expect the Texans are going to continue dishing out plenty of short term, one year contracts, similar to the one Schultz signed a year ago. Schultz’s signing on Tuesday sends a great message to players signing one year deals with the Texans this offseason. That message is “If you’re looking to prove yourself on a one year contract, and eventually get taken care of with a multiyear deal, we are a team that isn’t afraid to do that.” That can be a powerful sales pitch to free agents.