The Kansas City Chiefs have restructured quarterback Patrick Mahomes' contract, a significant financial move that creates over $43 million in salary cap space for the upcoming 2026 season. The adjustment provides the team with immediate flexibility as they work to become compliant with league rules before the new season begins.
This marks the fourth consecutive year the organization has altered Mahomes' deal to manage its payroll. The move comes as the team faces critical roster decisions following a season where they missed the playoffs for the first time in recent memory.
Key Takeaways
- The Kansas City Chiefs created $43.65 million in 2026 salary cap space by restructuring Patrick Mahomes' contract.
- Mahomes' 2026 cap number has been reduced from $78.2 million to $34.65 million.
- The move was necessary as the Chiefs entered the offseason more than $57 million over the league's salary cap.
- This is the fourth straight year Mahomes' contract has been restructured to provide the team with financial flexibility.
A Critical Move for Roster Flexibility
The Kansas City Chiefs' front office has executed a crucial financial strategy to address its challenging salary cap situation. By reworking the contract of their star quarterback, the team gains immediate breathing room ahead of the NFL's new league year, which starts on March 11.
Before this adjustment, the Chiefs were projected to be more than $57 million over the salary cap. This restructuring is the first major step toward becoming compliant, a requirement for all 32 NFL teams.
The newfound financial flexibility is vital for a team looking to retool its roster. After three consecutive Super Bowl appearances, the Chiefs experienced their first losing season in over a decade in 2025, highlighting the need for strategic adjustments both on and off the field.
The Pressure of the Salary Cap
Every NFL team must operate under a league-mandated salary cap, which sets a ceiling on the total amount of money a team can spend on player contracts for that season. Teams that exceed the cap face penalties. Restructuring contracts is a common tool used by front offices to defer large salary payments and create immediate spending power.
Breaking Down the New Contract Terms
The mechanism behind the cap savings involves converting a large portion of Mahomes' scheduled salary into a signing bonus. Specifically, $54.45 million of his 2026 base salary was converted. This amount is then spread out evenly over the remaining years of his contract for accounting purposes.
As a result, Mahomes' cap hit for the 2026 season plummets from a staggering $78.2 million to a more manageable $34.65 million. This single transaction frees up $43.65 million for the team to use on other players or to absorb existing costs.
Future Financial Implications
While the move provides short-term relief, it pushes significant costs into future years. The restructured amount will add an additional $11 million to Mahomes' cap number for each of the next four seasons. According to figures from Over the Cap, his total cap number for the 2027 season is now projected to be $85 million.
Patrick Mahomes originally signed a 10-year, $450 million contract extension in 2020, which at the time was the largest in North American professional sports history.
This long-term planning suggests the Chiefs may consider another contract extension for the three-time Super Bowl MVP before 2028, when his salary and cap figures are scheduled to decrease significantly under the current structure.
Tough Decisions Still Ahead for Kansas City
Even with the substantial savings from Mahomes' deal, the Chiefs' financial work is far from over. The team must still make additional moves to get under the salary cap and build a competitive roster for the 2026 season.
Several high-priced veterans are now in the spotlight as the front office evaluates its options. These decisions could come in the form of further contract restructures, trades, or outright releases.
- Chris Jones: The star defensive lineman is a prime candidate for a similar contract restructure. He carries a cap hit of nearly $45 million for the upcoming season.
- Jawaan Taylor: The offensive lineman has one year remaining on his four-year, $80 million contract, making him a potential cut candidate.
- Other Veterans: Players like Mike Danna, Drue Tranquill, and Noah Gray could also be released to generate further cap savings.
While these decisions are difficult, they are a necessary part of managing an NFL roster in the salary cap era. The team's recent performance has increased the urgency to make smart, impactful choices.
Mahomes' Recovery and Future Outlook
Away from the financial spreadsheets, Patrick Mahomes is focused on his physical recovery. The two-time league MVP underwent surgery in mid-December to repair two torn ligaments in his left knee. Despite the significant procedure, he has expressed his goal to be ready for the Chiefs' 2026 season opener.
"The goal is to be ready to go at the beginning of the season," Mahomes stated last month, signaling his intent to lead the team's rebound effort.
The restructuring of his contract demonstrates the ongoing partnership between Mahomes and the Chiefs' organization. By consistently agreeing to these adjustments, he provides the team with the best possible chance to build a championship-caliber roster around him each year. The front office will now use this newly created financial leverage to navigate a critical offseason.