KANSAS CITY, Mo. -- The Kansas City Chiefs announced this week that they have restructured quarterback Patrick Mahomes' contract to create significant salary cap space ahead of the 2026 NFL season, league sources confirmed. The move comes as the franchise prepares for free agency and roster decisions following its first losing season since 2014.
According to ESPN and contract tracking website Over The Cap, the Chiefs converted $54.45 million of Mahomes' 2026 base salary into a signing bonus. That conversion reduced his salary cap number from $78.2 million to $34.65 million, creating roughly $43.56 million in cap space for the team.
Kansas City had entered the offseason more than $57 million over the projected 2026 salary cap, which is a key figure for roster building. NFL teams must be compliant with the cap when the new league year begins on March 11, and the Mahomes restructure is one of several maneuvers the Chiefs are expected to make as they balance financial flexibility with competitive needs.
Mahomes' contract restructure marks the fourth consecutive year the Chiefs have adjusted his deal to manage cap obligations. The three-time Super Bowl MVP originally signed a 10-year, $450 million contract extension in 2020 -- at the time the richest contract in North American team sports -- and has since been a focal point of Kansas City's financial planning.
Under this year's restructure, Mahomes' cap hit will increase in future seasons. The savings this year are achieved by spreading portions of his base salary over multiple years, a common practice in the NFL to provide immediate cap relief. Chiefs brass have indicated that they may again adjust veteran contracts or consider other roster changes to ensure compliance with league rules.
Mahomes, who is recovering from surgery that repaired two torn ligaments in his left knee including a torn ACL, reaffirmed his aim to play in the 2026 season opener despite the injury. The quarterback's health and availability remain key concerns for Kansas City as it seeks a rebound after a 6-11 finish in 2025 that excluded it from the playoffs.
Star defensive tackle Chris Jones, who also carries a significant cap number, is another player likely to be involved in future cap-saving moves. Chiefs officials have previously indicated that additional restructures or extensions for high-paid veterans could be necessary to align payroll with cap limits.
The timing of the restructure gives Kansas City more immediate breathing room as free agency approaches. The Chiefs must consider re-signing key players and addressing needs at multiple positions, including offensive line help and pass rush support. The cap space created by Mahomes' reconstructed contract could be instrumental in those efforts.
As the Chiefs navigate the offseason, other veterans with large cap numbers could follow Mahomes' lead. How Kansas City balances restructured contracts with long-term planning will be watched closely across the league as teams adapt to a challenging cap environment.