NFL
The elephant in the room for the Chiefs and Patrick Mahomes: Why his contract could lead to serious punishment from NFL
The Kansas City Chiefs are currently grappling with significant salary cap challenges that, if unaddressed, could result in severe penalties from the NFL, including hefty fines, loss of draft picks, or even the voiding of player contracts. Central to this issue is the contract of their star quarterback, Patrick Mahomes.
In 2020, Mahomes signed a groundbreaking 10-year, $450 million extension, underscoring the Chiefs’ commitment to securing their franchise quarterback for the long term. While this contract ensures Mahomes’ presence on the team, it also presents substantial financial implications. As of March 7, 2025, the Chiefs are operating with a salary cap space deficit of $675,000, considering all known signings and releases.
The situation became more pressing when the Chiefs used the franchise tag on Pro Bowl guard Trey Smith, obligating the team to offer him a one-year contract worth approximately $23.4 million. This move pushed the Chiefs over the salary cap, necessitating immediate financial adjustments to comply with NFL regulations and avoid potential penalties.
One viable solution to alleviate the cap strain is restructuring Mahomes’ contract. By converting a portion of his base salary into a signing bonus, the Chiefs can spread the cap hit over multiple years, thereby reducing the immediate financial burden. This strategy has been employed in the past; in 2024, the Chiefs restructured Mahomes’ contract, creating $21.6 million in salary cap space
However, continually restructuring contracts is a double-edged sword. While it provides short-term relief, it can lead to inflated cap numbers in future seasons, potentially hamstringing the team’s financial flexibility down the line. For instance, a predicted restructuring of Mahomes’ contract could reduce his 2025 cap number but might escalate his 2026 cap hit to $78.213 million.
The Chiefs’ front office faces a delicate balancing act: ensuring compliance with the salary cap to avoid NFL sanctions while maintaining a competitive roster around Mahomes. Strategic financial planning and perhaps difficult personnel decisions will be crucial in navigating this challenging landscape.
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