Chiefs Restructure Mahomes' Contract, Free Up $43.6M in Cap Space

The move allows Kansas City to retain key players and be active in free agency.

Published on Feb. 24, 2026

Got story updates? Submit your updates here. ›

The Kansas City Chiefs have reworked quarterback Patrick Mahomes' 2026 contract, converting a large portion of his salary into a signing bonus. This frees up approximately $43.6 million in salary cap space for the Chiefs, who were facing a tight budget this offseason. The move allows Kansas City to retain priority players like tight end Travis Kelce and be more active in free agency without having to make difficult cuts.

Why it matters

The Chiefs were staring down a difficult offseason where they may have had to let key players walk and rebuild. This contract restructure gives them more financial flexibility to keep their core together and continue competing at a high level.

The details

The Chiefs converted a large chunk of Mahomes' 2026 salary into a signing bonus, which spreads the cap hit over future years. This lowers his 2026 cap number from around $78.2 million down to $34.65 million. While this does balloon Mahomes' future cap hits, the rising salary cap makes that more manageable.

  • The contract restructure was completed on February 19, 2026.

The players

Patrick Mahomes

The star quarterback of the Kansas City Chiefs.

Travis Kelce

The veteran tight end for the Kansas City Chiefs who is a priority free agent this offseason.

Kansas City Chiefs

The NFL team that plays in Kansas City, Missouri and has won multiple championships with Mahomes as their quarterback.

Got photos? Submit your photos here. ›

What’s next

The Chiefs will now have the financial flexibility to re-sign key free agents like Travis Kelce and be active in free agency to bolster their roster for another championship run.

The takeaway

The Chiefs have once again demonstrated their ability to get creative with the salary cap, allowing them to keep their championship-caliber roster intact and continue competing at the highest level in the NFL.