Patrick Mahomes, Chiefs Reportedly Restructure Contract, Updated NFL Salary Cap Ahead of Free Agency

The Kansas City Chiefs reportedly restructured superstar quarterback Patrick Mahomes' contract this week to create salary cap space for the 2026 season.

According to ESPN's Adam Schefter and Jason Fitzgerald of OverTheCap.com, the Chiefs converted $54.45 million of Mahomes' 2026 salary into a signing bonus, lowering his 2026 cap hit from $78.2 million to $34.65 million, and creating $43.56 million in cap space for the Chiefs.

Per Fitzgerald, the Chiefs are still an estimated $11 million over the cap even with the Mahomes restructure.

Kansas City is coming off an unfamiliar season, as the team finished 6-11 and missed the playoffs for the first time since 2014.

Entering 2025, the Chiefs had won nine consecutive AFC West titles, reached seven straight AFC Championship Games and made it to back-to-back-to-back Super Bowls.

When they were already on the brink of the playoff elimination, the Chiefs lost Mahomes for the remainder of the season in Week 15 when he tore his ACL during a loss to the Los Angeles Chargers.

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Now, the Chiefs face more uncertainty than they have at any time during the Mahomes and head coach Andy Reid era, especially since it isn't yet known if Mahomes will be cleared to play by the start of the 2026 regular season.

On top of that, key players such as linebacker Leo Chenal and cornerback Jaylen Watson are set to hit free agency, future Hall of Fame tight end Travis Kelce is believed to be weighing retirement, and there could be some cap casualties on the horizon since KC is still well above the salary cap.

Restructuring Mahomes did get the Chiefs much closer to where they need to be, though, and Fitzgerald speculated that star defensive lineman Chris Jones could be next for a restructure in an effort to officially get under the cap.

Kansas City has roster needs galore entering free agency, particularly on offense, at the running back, wide receiver, offensive tackle and potentially tight end positions.

The Chiefs will also require reinforcements at linebacker and in the secondary if they lose Chenal and Watson, and they could also stand to beef up their defensive front after ranking tied for 22nd in the NFL last season with just 35 sacks.

It promises to be a busy offseason for the Chiefs in many respects, and restructuring Mahomes was the first of many consequential moves they will make.