The Kansas City Chiefs are confronting a significant financial hurdle as the new NFL league year approaches. The organization is currently projected to be approximately $58 million over the 2026 salary cap, a figure that must be resolved before the March 11 deadline.
With the NFL setting the 2026 salary cap between $301.2 million and $305.7 million, the Chiefs' front office, led by general manager Brett Veach, is preparing for a series of strategic roster moves. These will likely involve player releases, contract restructures, and potentially new deals for key players to ensure compliance.
Key Takeaways
- The Kansas City Chiefs are an estimated $58 million over the projected 2026 NFL salary cap.
- All teams must be cap-compliant by the start of the new league year on March 11.
- Key strategies to create space include releasing veteran players and restructuring large contracts, such as those of Patrick Mahomes and Chris Jones.
- Potential cuts could generate over $30 million in immediate cap relief.
A Looming Deadline and a Financial Squeeze
The NFL has established its financial boundaries for the upcoming season, and for the Chiefs, the numbers present a clear challenge. Based on an estimated cap of $303.5 million, the team's current commitments for 54 players place them well above the league-mandated limit. This situation requires immediate and decisive action.
Failure to become cap-compliant by the March 11 deadline is not an option. This puts the front office on a tight schedule to reconfigure its finances. The process involves a careful evaluation of the roster, balancing player performance, contract details, and future team needs.
Understanding the Salary Cap
The NFL salary cap is a collectively bargained agreement that sets a limit on the total amount of money teams can spend on player salaries for a given season. It is designed to maintain competitive balance across the league. Teams must manage their spending through contracts, bonuses, and other mechanisms to stay under this ceiling.
Difficult Decisions on the Cutting Board
To create substantial cap space quickly, the Chiefs will likely part ways with several veteran players whose contracts are no longer aligned with their on-field production or the team's financial strategy.
Jawaan Taylor, Right Tackle
One of the most discussed potential moves involves right tackle Jawaan Taylor. Releasing him would free up $20 million in cap space, despite incurring a $7.4 million dead money charge. Taylor signed a four-year, $80 million contract in 2023, but his tenure has been marked by a high number of penalties. His availability has also been a concern, having dealt with injuries that ultimately ended his 2025 season in November.
Mike Danna and Drue Tranquill
Defensive end Mike Danna is another candidate for release. This move would provide an additional $8.9 million in savings. Danna's role diminished in the latter half of last season as rookie Ashton Gillotte saw increased playing time. His final statistics, which included just one sack and 25 total tackles, make his current contract difficult to justify.
Similarly, linebacker Drue Tranquill's future is under review. While he was a significant contributor, playing 85% of defensive snaps, releasing him would save $6 million. The team may believe it can find comparable production at a lower cost, either from its current roster or through the upcoming draft, which is considered strong at the linebacker position.
Potential Savings from Cuts
- Jawaan Taylor: $20 million
- Mike Danna: $8.9 million
- Drue Tranquill: $6 million
- Total Potential Savings: $34.9 million
Restructuring the Cornerstones
Beyond player cuts, the most impactful moves will involve adjusting the contracts of the team's highest-paid stars. These restructures convert base salary into signing bonuses, spreading the cap hit over the life of the contract to create immediate relief.
Patrick Mahomes' Monumental Contract
Quarterback Patrick Mahomes currently carries a massive $78.2 million cap hit for 2026. A standard contract restructure could instantly clear $44.4 million in cap space. However, the organization may be considering a more comprehensive approach.
"Because Mahomes’ actual salary drops to an unrealistic $28 million in 2028, he is effectively only signed through 2027, no matter the seasons nominally remaining on the extension signed in 2020."
Given this structure, a completely new contract could be on the table. This would not only address the immediate cap issue but also establish a stable financial roadmap for the team for the majority of his career.
The Chris Jones Question
Defensive tackle Chris Jones represents another significant cap figure at $44.9 million. While restructuring his deal could free up $22.5 million, the front office faces a more complex decision. Jones has $35 million in guaranteed salary for 2026, securing his spot on the roster for at least one more season.
The team could choose not to restructure his contract. This would keep his 2026 cap hit high but would provide greater flexibility to move on from the contract in 2027 with more substantial savings. It's a strategic choice between short-term relief and long-term flexibility.
The Path to Compliance
While the $58 million deficit appears daunting, the Chiefs have a clear and manageable path forward. A combination of key moves can quickly transform their financial outlook. For example, restructuring Mahomes' contract to the maximum extent and releasing Taylor, Danna, and Tranquill would erase the deficit and create a surplus of around $20 million.
The team also has other options, such as restructuring the contracts of guard Trey Smith and center Creed Humphrey, which could provide an additional $21.4 million in space combined. These moves may be kept in reserve for needs that arise later in free agency or during the season.
General manager Brett Veach is expected to make initial moves to become cap-compliant before March 11, positioning the team to be active when free agency begins. Further adjustments will likely follow as the team's roster and financial needs for the 2026 season become clearer.