Patrick Mahomes contract: Chiefs create cap space by restructuring star’s deal

The Kansas City Chiefs restructured Patrick Mahomes’ contract for the fourth consecutive season, according to Over The Cap, opening up tens of millions of dollars in salary cap space. Mahomes was scheduled to carry a $78.2 million cap hit in 2026, but the Chiefs converted $54.45 million of his salary into a signing bonus to lower his cap number to $34.65 million.

The clearance of $43.65 million in cap space is the first step towards creating financial flexibility in what is a critical offseason for the Chiefs. They entered 2026 more than $57 million over the cap, limiting their ability to make necessary roster moves after missing the playoffs for the first time since 2014 and failing to win the AFC West for the first time in the Mahomes era.

With Mahomes coming off a torn ACL, there are no guarantees that he starts the 2026 season at full strength. His recovery timeline sets up for potential Week 1 availability, but that it is a question that emphasizes the Chiefs’ need to build a roster capable of staying afloat if he misses time.

While the contract adjustment lowers Mahomes’ cap number in 2026, it also adds $10.98 million to his number for every year from 2027-31. He will carry an $85 million hit next season, setting the stage for yet another restructuring next winter.

All of the adjustments to Mahomes’ earnings are a product of his signing a monumental contract extension in 2020. His 10-year, $450 million deal was at the time the largest contract in American sports history. Making Mahomes the highest-paid player in the NFL was effectively a no-brainer given that he had established himself as both a league MVP and Super Bowl champion at that stage of what was already a legendary career. But it was also clear it would create financial stress down the line.

Kansas City is now facing the repercussions of inking that historic deal.

Chiefs seek flexibility after down year

Kansas City has until the start of the NFL league year on March 11 to get under the salary cap, so further moves are likely in store over the next couple of weeks. Over The Cap projects that even with Mahomes’ contract restructuring, the Chiefs need to clear about $11 million worth of space. Defensive lineman Chris Jones could be next in line to have his contract adjusted, as he will carry a cap hit of approximately $45 million in 2026.

Once the Chiefs get under the cap, they will have key personnel decisions to make as they seek to bounce back from an uncharacteristically poor campaign. The offense is not nearly as unstoppable as it was during the peak of Kansas City’s league dominance, and it could benefit from upgrades at the skill positions to help once again get the most out of Mahomes. Uncertainty about whether Travis Kelce will return in 2026 further clouds the picture.

Mahomes’ contract creates challenges through 2031

The Chiefs have managed to limit Mahomes’ cap hit to no greater than $37.1 million in any year since he signed his lucrative contract. They have effectively delayed the inevitable, though, with their repeated restructuring. The three-time Super Bowl champion is running out of years onto which Kansas City can use to reduce their burden.

Here is Mahomes’ cap breakdown through 2031, per Spotrac:

The most logical solution is for Mahomes to sign another extension when first eligible in 2028. Tacking on additional years to his deal, and at a much lower salary, would provide the Chiefs the ability to further spread out his scheduled earnings.