Why the Chiefs Restructured Patrick Mahomes’s Contract, and What Could Come Next

General manager Brett Veach and quarterback Patrick Mahomes worked out a way to move money around on Mahomes's current contract. | Denny Medley-Imagn Images

The Chiefs have restructured Patrick Mahomes's contract (again) and in the process, have taken a step closer to being in salary cap compliance. On Wednesday, it was reported that Kansas City converted $54.45 million of Mahomes's salary for the 2026 season into a signing bonus, first reported by Jason Fitzgerald of Over The Cap and confirmed by other reporters.

This is the fourth straight offseason that the Chiefs have restructured the 10-year, $450 million contract Mahomes originally signed with the team in 2020.

Mahomes's cap figure for this season was going to be $78.2 million, but it's now $34.65 million. His cap numbers for the next four years are now going up with the '27 cap hit now sitting at more than $85 million. If history is any indicator, they're going to keep restructuring his deal every offseason to create cap flexibility.

How Much Cap Space do the Chiefs Have?

By restructuring Mahomes's contract again, the Chiefs have opened up an additional $43.56 million in cap space heading into the '26 offseason. While they did free up a significant amount of money by doing this, they still don't technically have any cap space. With Mahomes's new numbers, the Chiefs are still more than $11 million over the $303,500,000 salary cap according to OTC.

Only the Vikings, Cowboys, Jaguars and Bills have more money on the books headed into the offseason than the Chiefs right now. The good news is that they still could restructure Chris Jones's similarly large deal and create some actual cap space.

Will Tyreek Hill Return to Kansas City?

As soon as things started to go south with Mike McDaniel and the Dolphins over the last couple of seasons, there have been whispers that wide receiver Tyreek Hill could be a candidate to return to the Chiefs.

HIll was drafted by the Chiefs in the fifth round of the 2016 NFL draft. He had his breakout season with Alex Smith at quarterback while rookie Patrick Mahomes sat on the bench for most of the '17 season. In '18, when Mahomes took over as the starting quarterback, Hill scored 13 total touchdowns and had nearly 1,500 receiving yards. In six seasons with the Chiefs, Hill played in 13 playoff games, scored five postseason touchdowns and helped win a Super Bowl.

Now he's a free agent after being waived by the Dolphins and the speculative chatter about a possible return continues.

MORE: Ranking the Three Most Likely Tyreek Hill Landing Spots After Dolphins Release

Hill turns 32 in March and is coming off a season where he only appeared in four games due to injury, but he's just two years removed from one of the biggest wide receiver seasons in NFL history. If he can recapture any of the magic he once had with Mahomes, it would be huge for the Chiefs.

What Other Moves Can the Chiefs Make?

Maybe the biggest move of the offseason for the Chiefs was bringing Eric Bieniemy back. If the Chiefs don't get Hill, they will have to search somewhere else in free agency for a legitimate threat for Mahomes. If Jones restructures his deal, it would clear the way for Hill, but that's only one option. The Chiefs are always on the lookout for receivers and guys like George Pickens, Alec Pierce, Romeo Doubs and Jauan Jennings are all free agents, barring franchise tags.

MORE: 10 Best Wide Receivers Available In NFL Free Agency

Then there's the offensive line, which is another group they wouldn't mind upgrading, but linemen Jawaan Taylor and Trey Smith are the team's third and fourth-highest-paid players.

On top of all that there's always the question of whether or not Travis Kelce returns. The team would likely be happy to have him so it comes down to whether or not he's ready to become a full-time podcaster or wants to keep playing.

When will Patrick Mahomes be healthy?

Whoever the Chiefs sign with that cap space, the '26 season rests on how well Mahomes bounces back after suffering a torn ACL and LCL in his left knee. Mahomes was injured in December during a Week 15 game against the Chargers.

The recovery from Mahomes's injury is generally nine months, which means he could be ready for Week 1. In January Mahomes said rehab was going well so there's definitely reason for optimism.

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