The Chiefs entered the 2024 NFL season with a solid amount of cap space, but it quickly dried up after the team placed the franchise tag on cornerback L'Jarius Sneed and signed defensive tackle Chris Jones to a long-term extension.
That left the Chiefs with few resources with which to make other additions to their team... Until Patrick Mahomes came to the rescue.
Mahomes agreed to restructure his contract with the Chiefs to free up $21.6 million in cap space, per ESPN's Adam Schefter. The move freed up $21.6 million in cap space without costing Mahomes a dime and gave Kansas City some wiggle room as it looks to become the first NFL team to win three consecutive Super Bowls.
Mahomes restructuring his contract isn't surprising. He has now done so four times since signing a record-breaking 10-year, $450 million deal with the team in 2020. That allowed Kansas City to continue adding and retaining talent around the three-time Super Bowl winner.
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Here's what to know about Mahomes' restructured deal and what it means for the Chiefs.
Patrick Mahomes contract restructure
Mahomes' contract restructure involved taking $27 million of his 2024 compensation and converting it into a signing bonus, per Spotrac.com. That action lowered his cap hit from $58.6 million to a much more palatable $37 million.
How did his cap hit drop that much? Mahomes' new $27 million signing bonus was prorated over five years, per
Spotrac.com.Mahomes cap hits through 2028
Year Cap hit 2024 $37 million 2025 $66.3 million 2026 $68.7 million 2027 $64.8 million 2028 $32.6 million The good news? Mahomes can simply restructure his contract again in 2025 to create more cap space.
That may eventually come back to bite the Chiefs — Mahomes could have a massive cap hit down the line or have significant void years during which he isn't on the roster but still counts against the salary cap — but Kansas City won't be concerned about that as long as its championship window remains open.
That should last at least through 2026, when Mahomes and the Chiefs are rumored to be targeting a fully reworked contract and potential extension.
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QBs | RBs | WRs | Defense | OverallChiefs cap space after Patrick Mahomes restructure
The Chiefs have just over $15.3 million in cap space after Mahomes' contract restructure, per OverTheCap.com. That's good for the 18th-most in the league as of Wednesday at 9 a.m. ET.
That number figures to change often for the Chiefs as they tinker with their roster, and they will need to set some of that sum aside for their 2024 NFL Draft picks.
That said, they can also use some of it to target their biggest needs at wide receiver and left tackle as the offseason continues. Perhaps they'll chase a speed threat like Hollywood Brown at wide-out while considering adding former Cowboys stalwart Tyron Smith to take over as Mahomes' blindside protector.
Either way, the Chiefs have options. And that's largely thanks to Mahomes' willingness to re-do his contract.