Patrick Mahomes saving Chiefs $21.6 million in cap space by restructuring contract

Patrick Mahomes will restructure his contract in order to help the Chiefs create an additional $21.6 million of cap space, ESPN’s Adam Schefter reported on Tuesday.

The decision is being made with the hope of putting the team in a better position to be the first NFL team to win three consecutive Super Bowls.

Mahomes had been slated to have a $58.6 million cap hit this upcoming season, according to Spotrac, but the site now lists it as around $37 million for 2024. 

It has also been estimated that it will be $66.2 million in 2025 and $68.6 million in 2026.

Mahomes had signed a record 10-year, $450 million extension in 2020 making him the highest-paid player in the NFL at the time and the contract has now been reworked twice over the past six months.

The two sides had already reworked the deal last September in a way that would structure it so that the Chiefs’ star quarterback would make $208.1 million from 2023-26. 

Kansas City is working with limited cap space — entering the offseason with $7,478,547 in free money. 

The Chiefs used their franchise tag on cornerback L’Jarius Sneed while the two sides continued to work toward a long-term contract and they re-signed defensive tackle Chris Jones to a five-year deal. 

Kansas City also has reportedly signed punter Matt Araiza and wide receiver Marquez Valdes-Scantling. 

The Chiefs are coming off a year where they captured their second consecutive Super Bowl title, despite some rough patches over the course of the regular season. 

They had an additional spotlight on them with star tight end Travis Kelce dating music icon Taylor Swift, who was on hand throughout their championship run to cheer on her boyfriend. 

The Chiefs defeated the 49ers 25-22 in Super Bowl 2024 in February.