Report: Patrick Mahomes, Chiefs restructure contract to create additional cap space

Patrick Mahomes has restructured his contract with the Kansas City Chiefs in effort to give the team extra cap space to work with. ESPN’s Adam Schefter reported that the new deal will save the Chiefs roughly $21.6 million that they can use to add a free agent.

The move will serve to benefit both Mahomes and Kansas City, which is fresh off of its second straight Super Bowl victory and aiming for a threepeat. Now the Chiefs can add another weapon for their quarterback or address other areas of concern as they gear up for 2024.

Mahomes was originally set to have a salary cap hit of $58.6 million this upcoming season, but that number has dropped to $37 million according to Spotrac. His cap hit will take another big jump in the 2025 season as it is set to go up to $66.2 million.

Spotrac also reported that $27 million of Mahomes’ salary this season will go toward a restructure bonus.

Mahomes originally signed a 10-year, $450 million contract with the Chiefs in 2020. The team restructured his deal already this past September so that he is paid $210.6 million from 2023 until 2026, the most a player has been paid over a four-year period in NFL history.

Mahomes’ contract was viewed to be team-friendly at the time of his signing in 2020 because there was less guaranteed money than average despite the large number. That allows Kansas City some wiggle room to rework the contract every three seasons, give or take. It is highly likely that the franchise will again do so following the 2026 season.

Restructuring Patrick Mahomes’ contract isn’t the first big move the Chiefs have made this offseason. They also re-signed starting defensive tackle Chris Jones to a five-year deal and franchise tagged cornerback L’Jarius Sneed. Both were vital parts of the defense this past season as Jones tied for the team lead with 10.5 sacks.

Kansas City also reportedly cut receiver Marquez Valdes-Scantling, suggesting they could be in search of another pass catcher.

Prior to reworking Mahomes’ deal, the Chiefs were expected to have very little to work with at the start of free agency Wednesday. Now Spotrac estimates they will have $22.2 million in cap room, which ranks them 17th among all teams.

Thanks to Mahomes’ willingness to work with the front office on a deal that benefits both sides, Kansas City looks to once again strengthen its roster for another Super Bowl run.