Chiefs Restructure Mahomes’ Contract, Freeing Over $43 Million in Cap Space
The Kansas City Chiefs have taken significant steps to alleviate their salary cap challenges. A recent restructuring of quarterback Patrick Mahomes’ contract has freed up more than $43 million in cap space.
Details of the Restructuring
According to NFL Network Insider Tom Pelissero, the Chiefs converted $44.05 million of Mahomes’ 2026 base salary and a $10.4 million roster bonus into a fully guaranteed roster bonus. This strategic move resulted in a creation of $43.56 million in salary cap room.
Understanding the Cap Maneuver
This restructuring is a common practice that allows teams to adjust player payments. The payments are transformed into a prorated bonus, which is distributed over the remaining contract years. This method enables teams to manage cap hits effectively by pushing them into future years.
- 2026 Cap Hit: Reduced from $78.214 million to $34.65 million.
- 2027 Cap Hit: Increased to $85.25 million.
- Future Implications: Adds nearly $11 million to all following seasons.
Background on Mahomes’ Contract
Patrick Mahomes signed a landmark 10-year contract worth $450 million in July 2020. This deal was strategically designed to provide the Chiefs with flexibility over its duration.
Future Outlook
As Mahomes continues his rehabilitation from a season-ending knee injury, the Chiefs are managing his contract carefully. With the cap figure for 2027 set to increase, a significant contract renegotiation may be on the horizon.
This restructuring reflects the Chiefs’ ongoing commitment to maintaining their star quarterback while optimizing their financial framework. Teams often utilize such strategies to balance high-profile contracts within the constraints of the salary cap.
