BREAKING: Chiefs Stars Adjust Contracts, Create Cap Space

Patrick Mahomes and Chris Jones were scheduled to account for $101 million against the Chiefs’ salary cap when the new league year began Wednesday afternoon. According to ESPN’s Field Yates, they’ve agreed to restructure their respective contracts to free up nearly $50 million in valuable real estate.

According to overthecap.com, the Chiefs woke up Wednesday nearly $20 million above the number established as the salary cap for the 2025 league year, $279.2 million. That was the worst position in the league, especially after the club signed unrestricted free agents Jaylon Moore (two years, $30 million) and Kristian Fulton (two years, $20 million).

To create the space needed, the Chiefs likely converted all or part of the base salary or roster bonus due Mahomes and Jones this season and instead gave it to them as signing bonus. Those moves would lower their respective cap numbers, which at the beginning of the day were, respectively, $66.258 million and $34.85 million.

The Chiefs have restructured the contracts of QB Patrick Mahomes and DT Chris Jones, creating $49.446M in 2025 cap space.

The space (plus more) needed for Kansas City to sign their early free agents, including LT Jaylon Moore and CB Kristian Fulton. pic.twitter.com/iQC3kCfSt7
— Field Yates (@FieldYates) March 12, 2025

All NFL teams are required to be in compliance with the $279.2 million salary cap by 4 p.m. ET on Wednesday. That’s also the time at which the contracts of Moore and Fulton, as well as the trade of Joe Thuney to the Bears, can become official.

In addition to Moore and Fulton, the Chiefs this past weekend re-signed one of their defensive pillars, linebacker Nick Bolton. The three-year, $45 million contract kept him out of free agency. And before that, the club secured Pro Bowl guard Trey Smith, who was scheduled to become the most coveted offensive lineman when free agency opened, by designating him as their franchise player.

When Smith signed his one-year franchise-tag tender, both his 2025 salary and cap number became $23.4 million. If the Chiefs can successfully negotiate a long-term contract with Smith prior to the July 15 deadline, that number will fall and create more space. That space will help the Chiefs fit in their 2025 rookie class under the cap.

The conversation with Smith figures to be easy compared to the discussions Kansas City likely needs to have with Mahomes and Travis Kelce in the near future.

Kelce, who announced last week he plans to return for his 13th NFL season, has a $19.8 million cap number. Coming off the lowest production since his rookie season, some wonder whether the Chiefs would ask the future Hall of Famer to take a pay cut. In the wake of the Super Bowl loss to the Eagles, reports suggested the Chiefs move on from Kelce in a salary-cap move that would’ve saved the club $17 million.

Mahomes is another difficult conversation. On Sunday, the Bills agreed to terms with reigning MVP Josh Allen on a six-year extension worth $330 million, with $250 million guaranteed. The contract stunned the NFL and no doubt triggered future contract discussions for the Chiefs and Mahomes in order to pay him as much or more than Allen.

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