Pre-Free Agency Salary Cap Update for the Kansas City Chiefs

When CBSSports.com's Joel Corry noted that the Kansas City Chiefs had around $400,000 of cap space late in December, it was evident the team needed to free up plenty of space. So far this offseason, Chiefs general manager John Dorsey has worked to improve that.

With the team parting ways with wide receivers Donnie Avery and A.J. Jenkins, tight end Anthony Fasano and inside linebacker Joe Mays, the Chiefs created approximately $9.5 million of cap space. But the Chiefs are still in a bind, financially, after ESPN's Adam Schefter tweeted that the Chiefs were the first NFL team to use the non-exclusive franchise tag, this year, doing so for outside linebacker Justin Houston.

With the franchise tag, Houston is projected to make $13.195 million. This puts the Chiefs below the cap at approximately $3.5 million.

However, there are ways for the Chiefs to create more cap space before free agency begins on Tuesday, March 10. 

Tamba Hali said in an interview with Danny Parkins on 610 Sports Radio (h/t Pro Football Talk) that he is willing to return for less money; he is currently set to make $11.96 million. The Chiefs surely have to consider parting ways with wide receiver Dwayne Bowe, backup quarterback Chase Daniel and defensive ends Mike DeVito and Vance Walker.

If the Chiefs re-structure Hali's contract and release Bowe, Daniel, DeVito and Walker, the franchise creates about $20 million in cap space.

Bowe, the primary receiver on a team that did not throw a touchdown pass to a wide receiver, is set to make $14 million, and it is fair to say that is way above his current value. While Daniel has proven himself when stepping in for Alex Smith, $4.8 million for a backup quarterback is too much. Letting Bowe and Daniel go together will open up $8.8 million.

NFL.com's Conor Orr reported that the Chiefs could cut ties with DeVito if he does not take a pay cut. If the Chiefs want to free up additional cap space they can let Walker go, who is due to make $3.75 million this year, as the team can free up $1.75 million if he is released.

If the Chiefs were to do exactly all of the above, they would be given around $16 million in money to spend this offseason, giving them more than enough to satisfy Houston. Houston made below $3 million in his four years with the Chiefs, earning just $1.6 million in 2014 after leading the league with a franchise record 22 sacks.

Odds are, Houston and his agent, Joel Segal, will demand plenty of money for 2015 after Houston made very little for the work he did previously. Spotrac.com predicts Houston will sign a six-year deal worth $92,670,276 with nearly $49 million in guaranteed money.

If Houston's mega contract was evenly divided over six years, he would receive $15,445,046 for 2015, giving the Chiefs little to spend this offseason putting them back to square one. Though contracts are not divided evenly like that, it gives fans a good understanding of how much money is being considered for Houston.

Jamie Squire/Getty Images

Kansas City's limitations and offseason activity depends solely on Houston's contract. The Chiefs probably want to front-load a lot of money to Houston in 2016 or 2017 so they can reach out to free agents Jeremy Maclin and Randall Cobb. But odds are, Houston and Segal are not open to that and want a lot of that money in 2015 to make up for Houston receiving little cash in his first four years while serving as a three-time Pro Bowler.

If the Chiefs struggle to sign Houston to a long-term deal and another team steps in, the Chiefs do get two first-round draft picks for 2015 and 2016 due to the rules with the non-exclusive franchise tag. The situation is rare as the last time this happened was in 2000 when wide receiver Joey Galloway signed with the Dallas Cowboys while receiving the non-exclusive franchise tag from the Seattle Seahawks.

But Houston is worth the two first-round picks and some teams won't shy away from considering Houston if it means surrendering two first-round picks. Houston was drafted when Scott Pioli was the general manager of the Chiefs, now the assistant general manager for the Atlanta Falcons. Romeo Crennel was the defensive coordinator when Houston was drafted and was briefly the head coach and is now the defensive coordinator for the Houston Texans.

With connections to the Falcons and Texans, don't be surprised if Houston ends up on either of those teams.

If Houston does not return to Kansas City, it gives the Chiefs plenty of leeway this offseason. While Houston signing with another team is a major loss, it gives Dorsey a chance to spend that money and make up for the lost talent on defense.

All contract information courtesy of Over The Cap.

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