Chiefs restructure Mahomes’ contract, free nearly $44M in cap space. What's next?
Kansas City reduces estimated $55M deficit to $11.35M as additional roster moves loom.
The Kansas City Chiefs’ offseason is officially underway.
The club restructured quarterback Patrick Mahomes’ contract earlier than it has in recent years, freeing up just under $44 million in salary cap space and providing much-needed financial relief ahead of the new league year.
The move comes with more urgency than usual. A year ago, the Chiefs restructured Mahomes and defensive end Chris Jones on March 12. This year’s decision arrives well ahead of the March 11 start of the 2026 league year, perhaps signaling a greater sense of immediacy following a 6-11 season.
That said, it likely has more to do with the team operating deeply in the red. Before the restructure, Kansas City faced nearly $55 million in cap space it needed to clear, according to OverTheCap.com. Following the move, that number drops to $11.35 million, which must be resolved by March 11.
The Chiefs reportedly converted $54.45 million of Mahomes’ 2026 salary into a roster bonus, lowering his cap number from $78.2 million to $34.65 million for the upcoming season. The restructure pushes money into future years, increasing his 2027 cap hit to $85 million after adding $11 million spread over the next four seasons.
Mahomes originally signed a 10-year, $450 million contract in 2020, designed to be team-friendly and flexible. Once again, that flexibility is being utilized.
The league’s salary cap continues to climb. OverTheCap projects the 2026 NFL base salary cap at $303.5 million after the league announced it will fall within the $301.2 million to $305.7 million range per team. That marks another significant annual jump, following the 2025 cap of $279.2 million.
Kansas City is still not in the black.
Several moves appear to be looming formalities. Releasing right tackle Jawaan Taylor would save roughly $20 million against the cap, while parting ways with defensive end Mike Danna would free nearly $9 million. Together, those moves would put the Chiefs comfortably under the limit.
Other potential cap casualties include linebacker Drue Tranquill ($6 million in savings), cornerback Kristian Fulton ($5 million), and tight end Noah Gray (nearly $4 million). The team could save nearly $8 million by releasing swing tackle Jaylon Moore, though that appears unlikely given his status as the presumed starting right tackle.
In order to feel comfortable letting go of Tranquill, they would need to feel OK with 2025 fifth-rounder Jeffrey Bassa, or another free agent, stepping into that role. That may be a tough pill to swallow, with Leo Chenal also set to be a free agent.
As for Fulton, even after a tumultuous first season following signing a two-year $20 million contract last offseason, it would be tough to find a replacement for $5 million. 2025 third-rounder Nohl Williams is set for a bigger role, but starting cornerback Jaylen Watson is set to be a free agent.
General manager Brett Veach and the front office could also restructure additional contracts. Jones, center Creed Humphrey, right guard Trey Smith, and linebacker Nick Bolton are all candidates, though the likelihood varies depending on how aggressively the team wants to push money into future seasons. With Jones entering his age-32 season, the Chiefs may opt to retain his current salary rather than extend the financial burden into his 30s, for instance.
Another significant decision involves cornerback Trent McDuffie. He currently carries a $13.6 million cap hit on his fifth-year option. Kansas City could reduce that number with a multi-year extension or eliminate it entirely if presented with a compelling trade package.
There are layers to how the Chiefs proceed. Much will depend on how active they intend to be in free agency before the draft, where they are slated to pick No. 9 overall, the highest selection of the Veach era.
The legal tampering period opens March 9, two days before the new league year begins, and verbal commitments are often reported within minutes. How much flexibility Kansas City wants at that point will shape the next wave of moves.
Head coach Andy Reid’s squad has several needs, such as running back, wide receiver, potentially tight end, and at every level of the defense.
Another variable remains tight end Travis Kelce, whose potential return would occupy additional cap space. No official decision has been announced to this point, but the future Hall of Famer has stated in the past that he would like to inform the Chiefs prior to the new league year.
As for Mahomes, he continues recovering from a torn ACL sustained in Week 15 against the Los Angeles Chargers. His on-field timeline remains unclear, but his latest contract adjustment provides immediate help off it.
The Chiefs are not finished. But the clock is ticking, and the restructuring of their franchise quarterback is the first major step in navigating it.