The gift that keeps on giving for the Chiefs’ payroll, Patrick Mahomes‘ contract will see another restructure. Kansas City is going to this well for a fifth time since authorizing the megadeal in July 2020.
This latest adjustment will free up $43.56MM in cap space, according to OverTheCap’s Jason Fitzgerald. While this move clears considerable funds, the Chiefs still have a longer journey toward cap compliance. Per OverTheCap, they are still projected to be more than $11MM over the 2026 salary ceiling.
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Mahomes’ cap number was set to be an untenable $78.21MM; it now drops to $34.65MM. For the future, OverTheCap adds the superstar quarterback’s cap hits will rise by $10.89MM in each of the next four seasons. That will mean an $85.25MM number in 2027 (and likely another restructure). Mahomes’ 10-year, $450MM contract still runs through 2031.
The Chiefs completed a true reworking, rather than merely moving money around, in 2023 — after the $50MM-per-year QB club began to form (Mahomes’ AAV remains $45MM). They have moved to restructure that updated deal in 2024, 2025 and again Wednesday. Specifically, ESPN’s Adam Schefter indicates the Chiefs converted $54.45MM of Mahomes’ 2026 compensation into a signing bonus, which can be prorated into future years.
When the Chiefs designed this contract in 2020, Mahomes vaulted $10MM past the field in AAV. It took him committing to the team on a 10-year extension for the club to grant such a leap, but the field caught up to the three-time Super Bowl champion fast. Mahomes’ AAV now sits tied for 14th among QBs. No one else since Mahomes’ extension has agreed to a deal longer than six years, with Josh Allen‘s six-year pact coming closest. Both deals, the Chiefs’ especially, have allowed for tremendous cap flexibility.
More restructures could happen for the Chiefs this offseason; they redid Chris Jones‘ megadeal in 2025. But they also figure to make some true cap-casualty moves. A Jawaan Taylor release, which will save $20MM in cap space, is expected. The Chiefs can also turn to Mike Danna and Kristian Fulton‘s deals to create nearly $15MM in cap room.
Mahomes, 30, remains in the early stages of rehab from ACL and LCL tears. Week 1 remains the future Hall of Famer’s target, but the Chiefs will soon get to work on adding talent around their 10th-year passer.