Patrick Mahomes contract restructure has officially become the Kansas City Chiefs’ first major move of the offseason, and it dramatically alters their salary cap outlook for 2026.
Facing significant cap trouble after finishing the season roughly $50 million over the limit, the Chiefs needed immediate flexibility. On Wednesday, they found it by converting a massive portion of Mahomes’ salary into a signing bonus.
According to Jason Fitzgerald of Over the Cap:
“The Kansas City Chiefs converted $54.45 million of QB Patrick Mahomes’ 2026 salary into a signing bonus to create some much needed cap room for the Chiefs. The move lowered Mahomes’ salary cap number from $78.2 to $34.65 million for 2026, opening up $43.56 million in cap room for the Chiefs. This will be the fourth straight year that the Chiefs have restructured Mahomes’ contract to improve their salary cap situation.”
The result is quite favorable for the Chiefs as it gives them immediate breathing room, but the long-term implications are more complex.
Patrick Mahomes Contract Restructure: How It Impacts the Chiefs Salary Cap
Before Patrick Mahomes contract restructure, the quarterback carried a staggering $78.2 million cap hit in 2026. After the restructure, that number drops to $34.65 million, freeing up $43.56 million in Kansas City Chiefs cap space.
The Chiefs entered the offseason with 23 pending free agents, an estimated $50 million cap deficit, and multiple roster holes to address
However, the savings now come at a future cost. Mahomes’ cap number increases by $10.89 million annually over the next four seasons. His 2027 cap hit now balloons to approximately $85 million, a figure that almost guarantees further contract adjustments or an extension in the near future.
This is the fourth consecutive year Kansas City has used restructuring to manage Mahomes’ deal.
Why the Chiefs Keep Restructuring Mahomes’ Deal
Mahomes signed a 10-year, $450 million contract in 2020, though it officially began in 2022. Despite the headline number, the deal increasingly looks team-friendly in today’s quarterback market.
There are now 13 quarterbacks earning more per year than Mahomes. For a player widely considered the league’s premier talent, that makes his contract arguably one of the NFL’s biggest values.
Still, the structure requires constant cap manipulation.
The contract contains a potential out after the 2027 season, but it would carry a $57.16 million dead-cap charge. If exercised, it would effectively convert the deal into an eight-year, $327.9 million contract.
More realistically, an extension before that point seems inevitable.
Chiefs Offseason Moves Are Far From Finished
Even after Patrick Mahomes contract restructure, Kansas City is reportedly still about $11 million over the cap. So more Chiefs offseason moves are still expected, and potential restructuring candidates include:
- Chris Jones: $22.53 million in potential savings
- Trey Smith: $12.52 million
- Creed Humphrey: $8.85 million
- George Karlaftis: $7.94 million
There is also speculation that offensive tackle Jawaan Taylor could be designated a pre-June 1 cut, which would free up approximately $20 million in cap space.
The Chiefs salary cap strategy and the constant Patrick Mahomes contract restructure is clearly centered on maximizing the American’s championship window while pushing financial strain into future seasons.
What This Means for Patrick Mahomes
On the field, nothing changes for Mahomes. Off the field, however, another Patrick Mahomes contract restructure once again becomes the lever that keeps Kansas City competitive.
The Chiefs are betting that as long as Mahomes is under center, future cap issues can be managed. Restructuring now provides flexibility to improve the roster around him in 2026, but it increases financial pressure in 2027 and beyond.
In short, Kansas City has bought time. Whether that time results in another Super Bowl run will determine whether this Patrick Mahomes contract restructure was smart long-term management or just another short-term fix in an increasingly expensive dynasty era.
