Why Chiefs' Salary Cap Situation Isn't as Sticky as Expected

The Kansas City Chiefs will have to do some financial finagling this offseason.

Aug 9, 2025; Glendale, Arizona, USA; Kansas City Chiefs defensive tackle Chris Jones (95) with quarterback Patrick Mahomes (15) against the Arizona Cardinals during a preseason NFL game at State Farm Stadium. Mandatory Credit: Mark J. Rebilas-Imagn Images | Mark J. Rebilas-Imagn Images

The Kansas City Chiefs are in dire straits. There's really no way around it. This roster showed that it's far from the Super Bowl contender it was in years past, even while Patrick Mahomes was healthy and playing at an MVP-level. The offense is non-threatening, the defense was painfully adequate, and the play-calling was uninspired.

General Manager Brett Veach now has to find a way to bring this team back into the title conversation in one offseason, lest he waste another year of Mahomes' prime. Unfortunately, he has a lot of holes to fill and little means to do so. Not only does he have to upgrade the existing weaknesses on this roster, but he might have to account for Travis Kelce's retirement, Rashee Rice's potential legal troubles, Steve Spagnuolo and Matt Nagy's possible departures, and any key pieces the Chiefs might end up losing in free agency.

Jul 26, 2024; Kansas City, MO, USA; Kansas City Chiefs quarterback Patrick Mahomes (15) throws a pass as general manager Brett Veach watches in the background during training camp at Missouri Western State University. Mandatory Credit: Denny Medley-Imagn Images | Denny Medley-Imagn Images

Chiefs will be players in free agency again

A quick glance at the Kansas City Chiefs' books will have most accountants nosediving into a tailspin. Between the current contracts on the team and the allocated money for their 2026 NFL Draft picks, KC is set to be over $50 million above the league's salary cap. Clearly, that's not a situation anyone would want to be in, let alone a general manager who has to find ways to not only retain his key pieces but also upgrade the roster overall.

That's exactly where Brett Veach finds himself. As it stands, the Chiefs wouldn't be able to re-sign any of their players on expiring deals — including legendary tight end Travis Kelce — ink their selected rookies to new contracts, or add any talent in free agency. However, there's a pretty easy path to financial liquidity for Kansas City. The team actually did it last year.

Patrick Mahomes will be restructuring his contract to create an additional $21.6 million worth of salary-cap space for the Chiefs as they aim to become the first NFL team to three-peat, per league sources. pic.twitter.com/PxpJ5j8ZPj

— Adam Schefter (@AdamSchefter) March 12, 2024

Following the 2024 NFL season, the Chiefs were slated to be over $19 million above the salary cap. However, they reworked the contracts of Patrick Mahomes and Chris Jones, freeing up north of $50 million, which allowed them to keep their draft picks and sign free agents such as Khristian Fulton and Jaylon Moore.

That's the path KC is headed for this offseason, too. According to Spotrac, the Chiefs can accrue over $21 million in cap space by applying the max restructures for Mahomes and Jones' current contracts. Cutting Jawaan Taylor would bring that number to $41 million. Kansas City will incur more dead money down the road by tweaking Mahomes and Jones' deals, but this franchise knows what it has to do.

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