The Kansas City Chiefs were in one of the worst cap situations in the NFL entering the 2026 offseason, with the team sitting $57 million or more over the cap with 23 players entering free agency.
While it is no secret the Chiefs had their work cut out for them, the first step in solving the cap situation occurred on Wednesday, as the team restructured quarterback Patrick Mahomes’ deal, converting $54.45 million of the quarterback’s 2026 salary into a signing bonus, lowering the quarterback’s cap number from $78.2 million to $34.65 million, while also clearing $43.56 million in cap space.
ESPN’s Adam Schefter posted the news on X, with NFL Network insider Tom Pelissero providing further details. This is the fourth straight offseason the Chiefs have restructured Mahomes’ deal, as the team looks to remain competitive with the quarterback, who is the two-time NFL MVP.
Dec 7, 2025; Kansas City, Missouri, USA; Brittany Mahomes and Kansas City Chiefs quarterback Patrick Mahomes (15) take a picture prior to the game against the Houston Texans at GEHA Field at Arrowhead Stadium. Mandatory Credit: Amy Kontras-Imagn Images
Dec 7, 2025; Kansas City, Missouri, USA; Brittany Mahomes and Kansas City Chiefs quarterback Patrick Mahomes (15) take a picture prior to the game against the Houston Texans at GEHA Field at Arrowhead Stadium. Mandatory Credit: Amy Kontras-Imagn Images
The Kansas City Chiefs restructured Patrick Mahomes’ contract this week, lowering his salary cap number from $78.2 to $34.65 million for the upcoming season and creating $43.56 million in salary cap space, as @Jason_OTC reported. pic.twitter.com/2MShU1GAmq
— Adam Schefter (@AdamSchefter) February 18, 2026
Chiefs Still Need More Moves with the League Year Just Weeks Away
While the Chiefs have improved their cap situation with the Mahomes restructure, they are still $11 million or more over the cap with the league year set to begin Mar 11.
According to Over the Cap, restructuring defensive tackle Chris Jones’ contract, which has a cap hit of around $45 million, can free up $22.53 million in cap space.
Guard Trey Smith and center Creed Humphrey are also potential candidates for cap restructures, according to the same projections. Jawaan Taylor, an offensive lineman, is also being discussed as a potential cut prior to Jun 1, which can free up $20 million in cap space.
The Chiefs have a small window to get this situation cleared up before free agency begins.
Mahomes’ Future Cap Numbers Are Becoming More of an Issue
Kansas City Chiefs
Dec 14, 2025; Kansas City, Missouri, USA; Kansas City Chiefs quarterback Patrick Mahomes (15) scrambles against Los Angeles Chargers linebacker Khalil Mack (52) during the second half at GEHA Field at Arrowhead Stadium. Mandatory Credit: Jay Biggerstaff-Imagn Images
The immediate issue is solved, but at what cost down the line? Mahomes’ salary will now be converted to a bonus that will be spread out over the rest of his existing contract, which now adds $10.98 million to Mahomes’ cap number for each year from 2027 to 2031.
For next season, Mahomes’ cap number for 2027 will now be $85 million, according to Over the Cap. This ensures that Mahomes gets another cap restructure or full extension before next offseason.
Mahomes, who is currently rehabbing from surgery to repair two torn ligaments in his left knee, which he suffered in December, told reporters last month that he is aiming to play in the 2026 season opener.
Mahomes, who is currently recovering from surgery to repair two torn ligaments in his left knee suffered in December, told reporters last month he is targeting the 2026 season opener. His original 10-year, $450 million deal, signed in 2020, was the largest contract in North American sports history at the time.
The Chiefs failed to make the playoffs last season for the first time since 2014, which was also the first time in Mahomes’ career with the Chiefs. They are getting closer to getting under the salary cap, which is an important first step, but they are going to have to do much more to build a team that can compete again, which is going to be a much more complicated problem, especially with Kelce’s status uncertain and major issues on offense that were evident long before Mahomes’ injury.