The Kansas City Chiefs have begun the process of digging out of their salary cap quandary.
The Chiefs converted $44.05 million of Patrick Mahomes' 2026 base salary and a $10.4M roster bonus into a fully guaranteed roster bonus, creating $43.56 million in cap room, NFL Network Insider Tom Pelissero reported on Wednesday.
Jason Fitzgerald of Over The Cap first reported the cap maneuver.
A simple restructure converts payments into a prorated bonus that is spread over the remaining years of the deal, allowing teams to push cap hits into future years.
Mahomes, who is rehabbing from a season-ending knee injury, was set to count $78.214 million against the salary cap in 2026. The restructure sinks that number to a much more manageable $34.65 million. The move adds a shade under $11 million to all subsequent seasons. The QB’s 2027 cap hit now stands at $85.25 million.
The past few seasons, the Chiefs have moved money up to keep the star signal-caller in line with his high-profile peers. With that gigantic cap figure growing bigger in 2027, we’re inching closer to a complete redo of Mahomes contract.
The quarterback inked a massive 10-year, $450 million contract in July 2020. The deal was built to give the Chiefs flexibility throughout the contract. Restructuring the pact to push money into future years was always part of the plan.
Restructuring Mahomes' deal gets the Chiefs closer to compliance before the new league year opens on March 11.
K.C. had been more than $50 million over the projected salary cap before the maneuver. They still remain in the red, roughly $11 million over the projected cap. We’re likely to see more contract restructures on the way, starting with star defensive tackle Chris Jones. The Chiefs could also release veterans to save cap space. Candidates include Jawaan Taylor ($19.5 million), Michael Danna ($8.8 million) or Drue Tranquill ($5.8 million).
To get to the point where the Chiefs can effectively add players in free agency this offseason, general manager Brett Veach must not just get compliant but create enough room to add significant pieces to a team that just missed the postseason for the first time since 2014.
Mahomes’ restructure is notable, but it’s simply step one of a multi-step process in K.C. before the new league year.