Key Takeaways from Chiefs Restructuring Patrick Mahomes’ Contract

The Kansas City Chiefs provided themselves with major relief regarding their financial flexibility by restructuring Patrick Mahomes' contract, which opened up $43.5 million in cap space. The 30-year-old quarterback's 2026 cap number lowered from $78.2 million to $34.6 million.

While converting the salary into a signing bonus provides immediate assistance, Mahomes will account for an additional $11 million per season for the next four years.

Here are a few key elements to consider from Wednesday's news and what they may indicate for the Chiefs' plans this offseason.

Kansas City Believes It Will Be Competitive in 2026

Nov 16, 2025; Denver, Colorado, USA; Kansas City Chiefs tight end Travis Kelce (87) celebrates his touchdown with quarterback Patrick Mahomes (15) and tight end Robert Tonyan (85) in the fourth quarter at Empower Field at Mile High. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

Despite the financial constraints, limited draft capital, and the evident flaws across the roster, the Chiefs still assess themselves as viable contenders next season. The front office would not have made this dramatic decision if it believed that the team was not in a position to win meaningful games next season.

Regardless of whether Kansas City would be overly active in free agency, it had to maneuver under the cap before the new league year, which opens on March 11. However, opening up this much space with one restructured contract could be a signal that this is more than just meeting the league's financial threshold.

Mahomes and the Team Feel Good About Recovery Process

Dec 25, 2025; Kansas City, Missouri, USA; Patrick Mahomes watches the action from a suite during the third quarter at GEHA Field at Arrowhead Stadium. Mandatory Credit: Jay Biggerstaff-Imagn Images | Jay Biggerstaff-Imagn Images

As everyone knows by now, the nine-year veteran suffered a torn ACL near the end of the season, putting his status for the start of next season in serious question. However, it appears that his goal of being ready for Week 1 is still in place, and the rehab process is off to an optimistic start.

If Mahomes' timeline did not seem realistic or behind schedule, there would be little to no reason for the team to restructure his contract. In fact, in that case, Kansas City would be better off creating cap space organically by releasing several veteran players. On the surface, the Chiefs could appear vulnerable heading into next season, but that is not how the star quarterback and organization view this situation.

Chiefs Could Be Setting Themselves Up for an Active 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

As mentioned, regardless of what else transpires this offseason, Kansas City must work itself under the cap in the next few weeks. Opening up over $43 million in cap space in one swoop does indicate that the Chiefs will not be sitting idle while other teams around the league aggressively pursue free agents.

Currently, Kansas City is $11.3 million over the cap, but let's say that the Chiefs release Jawaan Taylor (saves $20 million), cut Mike Danna (saves $8.9 million), and trade Trent McDuffie (saves $13.6 million); those three moves alone would give the team $31.2 million to potentially spend.

If that ends up being the case, depending on who Kansas City targets in free agency, it could sign two or three players who could make an immediate impact in 2026.

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