The Kansas City Chiefs have restructured Patrick Mahomes’ contract, freeing up over $43 million in cap space as they rebuild the roster after a disappointing 2025 season
Patrick Mahomes tore his ACL and LCL in his left knee against the Chargers(Image: Getty)
The Kansas City Chiefs have executed their first major offseason maneuver by restructuring Patrick Mahomes’ contract, freeing up more than $43 million in salary cap room. The Chiefs were facing a -$50 million deficit heading into the offseason. They’re now at -$11 million, with additional roster decisions anticipated to generate substantial cap flexibility.
Kansas City general manager Brett Veach understands the extensive work required to rebuild the roster after the team managed only six wins in 2025. Meanwhile, Rob Gronkowski has issued a warning to Chiefs head coach Andy Reid over his Hall of Fame chances.
One potential move that has become significantly more feasible is reuniting with Tyreek Hill, now that the Chiefs possess the financial capacity and flexibility to make it happen.
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Hill is currently recovering from a devastating knee injury, having dislocated his knee and ruptured his ACL, along with suffering multiple ligament tears, which concluded his season after merely four games with the Dolphins.
Mahomes is also on the sidelines after suffering a comparable knee injury, and the Chiefs modified his contract to create financial flexibility for this offseason.
The contract adjustment has zero impact on Mahomes financially. He neither gains nor loses money from the Chiefs’ restructuring of his deal – it simply defers compensation into future years for Kansas City to absorb against the salary cap.
Mahomes inked a 10-year contract in 2020, keeping him tied to the team through the 2031 season. This arrangement has enabled the Chiefs to restructure finances over the past decade, consistently deferring his cap hit, with another extension likely in the near future.
The Chiefs could bring Tyreek Hill back this offseason(Image: Getty Images)
His 2027 cap hit is presently scheduled at $85 million. There’s virtually no chance he’ll play under those terms, with the Chiefs needing to either extend or rework his contract again.
The Chiefs face significant offseason challenges to create cap room, currently sitting at -$11m.
Right tackle Jawaan Taylor is almost certain to be released, a decision that would free up $20m in space, with Jaylon Moore prepared to serve as a capable replacement. This move would bring the Chiefs back into positive territory.
Kansas City could also clear an additional $18 million by releasing Mike Danna and Drue Tranquill – bringing their available cap space to approximately $35 million.
This would be sufficient to sign Tyreek Hill and make multiple other roster additions.
If additional cap room becomes necessary, the Chiefs can restructure the contracts of Chris Jones and Trey Smith – players they intend to retain long-term.