Kirk Cousins didn’t sign a long-term deal with Washington. What’s next for both sides?

Kirk Cousins is set to be a free agent in 2018 once again. Washington failed to work out a long-term deal with its quarterback before the July 17 deadline, meaning Cousins will be the first quarterback in league history to play under the franchise tag for two consecutive years.

Washington applied its franchise tag to Cousins in February, and he quickly signed it. The 28-year-old will make close to $24 million in 2017, which may be his last season with the team that drafted him. Cousins should get a lot of interest on the open market, though all eyes will be on a possible reunion between Cousins and his one-time offensive coordinator Kyle Shanahan, who is now the head coach of the San Francisco 49ers.

After the deadline, the team released a surprisingly pointed statement from team president Bruce Allen explaining why no long-term agreement was reached with Cousins.

“Our goal was to sign Kirk to a long-term contract with the final objective of having him finish out his career (in Washington),” Allen’s statement said.

The statement says that the team made Cousins an offer right after the draft that included the highest guaranteed money for a quarterback at that time, $53 million, as well as a total of $72 million guaranteed for injury. Allen says in the statement that the team did not receive a counteroffer from Cousins’ agent.

“Kirk has made it clear that he prefers to play on a year-to-year basis,” the statement says. “While we would have liked to work out a long-term contract before this season, we accept his decision.”

The deal Washington offered Cousins would have locked him up through 2022, but only would have included $29 million guaranteed over and above what he’ll receive playing under the franchise tag. According to NFL Network’s Ian Rapoport, that’s the primary reason a deal didn’t get done.

For one, the timing was bad for Washington. The team didn’t come to an agreement with Cousins before Derek Carr signed his massive five-year, $125 million extension, and that meant the team was looking at a blockbuster deal worth more than Carr’s to lock up Cousins.

Washington reportedly offered Cousins a deal averaging around $20 million a year back in February, according to The Washington Post’s Master Tesfatsion. NFL Network’s Tom Pelissero reported that the team increased its offer in May, but it still fell short of his franchise tag figure. Cousins knew he could turn that down and still make about $24 million this season before testing the market in 2018.

Despite not having a true franchise quarterback since Joe Theismann, Washington has been reluctant to commit to Cousins. There were rumors that the team isn’t sold on Cousins’ long-term potential as a franchise quarterback, and former general manager Scot McCloughan said he thinks that Cousins had already hit his ceiling.

Still, the team’s new head of player personnel, former Washington quarterback Doug Williams, said he wanted Cousins on board.

”The last two years, Kirk Cousins has had tremendous years,” Williams said in June to Steve Wyche on NFL Network. “And one thing in this league that’s hard to find is that guy to run the football team and Kirk does a tremendous job doing that.”

Cousins, a 2012 fourth-round pick, has developed into one of the league’s most prolific passers in recent years. He threw for more than 4,900 yards last fall — good for third in the NFL — and made his first Pro Bowl, but he saw his touchdown rate drop while his interception rate rose in an uneven season.

He also has a penchant for making back-breaking mistakes, like the pair of picks he threw in Week 17 against the New York Giants that effectively kept Washington out of the playoffs.

Less than a week before the July 17 deadline, the writing was on the wall. NFL Network’s Ian Rapoport reported that “both sides were OK” if Cousins ended up playing under the tag and as hinted, a deal couldn’t be reached.

Cousins will most likely have a new home next season. Washington could still franchise tag him again next year to keep him from walking, but the team would be on the hook for an astronomical amount: more than $34 million.

Washington could also re-sign Cousins once free agency begins. ESPN’s Adam Schefter said Cousins was “open” to a new deal following the season, but after two years of playing under the tag, Cousins may be ready to move on. Quarterbacks as productive as Cousins rarely hit free agency. In his two full seasons as a starter, he has completed 68.3 percent of his passes for 9,083 yards and 54 touchdowns.

And with the rising cost for quarterbacks in the NFL, Cousins stands to earn a big pay check.

In short, get ready for another eight months of speculation about Cousins’ future. He was involved in trade rumors in the early stages of this offseason, even after signing his franchise tender. There were reports suggesting Cousins wanted to join Shanahan in San Francisco, but Cousins denied he asked for a trade.

His name was linked to the Cleveland Browns during the 2017 NFL draft, too, but nothing came of it.

Any team in need of a quarterback will probably be tied to Cousins, but the 49ers are the most logical landing spot. Shanahan’s success with quarterbacks — most notably last year with NFL MVP Matt Ryan — and his good relationship with Cousins are only two factors in play.

The 49ers are projected to have plenty of cap space to sign a quarterback next season. Plus, their quarterback depth chart isn’t very inspiring. They’re heading into the 2017 season with journeymen Brian Hoyer and Matt Barkley, as well as third-round pick C.J. Beathard.

If Cousins doesn’t end up in San Francisco, he will still be a hot commodity. He will need to have another strong season this year, but even if he doesn’t, he can blame any dip in his numbers on the departure of several familiar faces. This offseason, Washington lost another offensive coordinator (Sean McVay, now the head coach of the Los Angeles Rams), and its top two receivers (DeSean Jackson and Pierre Garçon).

If Washington doesn’t tag Cousins a third time — and that’s unlikely given the $34 million price tag that would go with it — it can still try to extend him next offseason. But the team would have to shell out big money.

For Cousins, a deal in the $25 to $27 million per year range with $70 to $80 million guaranteed may be necessary.

The transition tag is another option. That would allow Cousins to talk to other teams and entertain offers, but Washington would have the ability to match any offer he gets to keep him. If the team decides not to match any offer, Cousins can walk away free and clear. At more than $28 million, the transition tag would still be costly, but much less than a third franchise tag.

If Cousins hits free agency, Washington will be back to the drawing board and looking for a franchise quarterback for the third time since drafting Robert Griffin III in 2012. Currently, the other quarterbacks on the roster are veteran Colt McCoy and second-year player Nate Sudfeld.

“If that doesn’t happen, if Kirk doesn’t sign a long-term contract -- which I hope he does -- that tells if not, we gotta go to work,” Williams said. “We gotta search long and hard to find that guy. But at the same time, we got a capable backup here in Colt McCoy, who can hold the fort down for a while or even take it the long distance.”

The team could also target a quarterback in the 2018 NFL draft, which is expected to be loaded at the position.

Cousins has been a reliable and consistent starter for Washington these past two years, and he won’t be easy to replace. If he plays at the same level this season and then walks away from Washington, the team may soon regret not working out a long-term deal with him.