Patrick Mahomes’ Contract Restructure: Impact Beyond 2026
The Kansas City Chiefs have made significant moves regarding quarterback Patrick Mahomes’ contract in a bid to manage their salary cap for the upcoming offseason. Recently, the team restructured Mahomes’ hefty $78 million salary cap figure for 2026, creating approximately $43.6 million in cap space.
Details of the Contract Restructure
Patrick Mahomes signed a record-setting ten-year contract with the Chiefs in 2020, valued at half a billion dollars. However, the actual contract did not activate until 2022, after his initial rookie deal expired. With this latest restructure, Mahomes’ cap charge has been drastically reduced to $34.7 million for 2026.
- Original 2026 Cap Number: $78 million
- Restructured 2026 Cap Number: $34.7 million
- Offseason Cap Space Created: $43.6 million
Despite the adjustments, another round of restructuring will be necessary as Mahomes’ cap figure is anticipated to exceed $85 million for 2027. While Mahomes is contracted with the Chiefs through the 2031 season, 2027 is viewed as his last true contractual season due to earlier amendments.
Market Dynamics and Future Considerations
As of now, 13 quarterbacks have higher average annual salaries than Mahomes. Nonetheless, he has prioritized guaranteed money over APY, which has led to a strong working relationship between him and the Chiefs. Following the adjustments made in 2023, Mahomes is guaranteed $210.6 million over the next seasons.
Looking ahead, Mahomes is set to earn $52.9 million in 2027, with $6.1 million becoming guaranteed soon. However, with a projected $27.2 million for 2028, the financial commitments appear challenging.
Challenges Ahead
The Chiefs will need to plan strategically for both Mahomes and emerging talents like Caleb Williams and Drake Maye, who will be eligible for substantial contracts in the coming years. Kansas City’s general manager, Brett Veach, faces the challenge of balancing the team’s salary cap while securing Mahomes’ long-term future.
As time progresses, the ability to navigate future negotiations will be crucial. A new agreement should focus on favorable guaranteed amounts, even if it impacts the average salary figures. This flexibility will ensure the Chiefs can sustain their competitive edge while maintaining a positive rapport with Mahomes.
