Kansas City Chiefs look to restructure Patrick Mahomes’ deal after Super Bowl. How will it work?

While the team’s focus is undoubtedly on Super Bowl Sunday, one has to believe that the franchise knows all too well that the future of its quarterback will have to be resolved in the near future. Indeed, should they win the big game, it will only serve to add a greater sense of urgency.

What’s the deal with Patrick Mahomes?

This Sunday, the Kansas City Chiefs will attempt to win their second consecutive Super Bowl when they take on the San Francisco 49ers. Should they win, the team’s quarterback, Patrick Mahomes, will become just the fifth quarterback in NFL history to have won three Super Bowls. The 28-year-old would also have sole possession of third place on the list of QBs with the most playoff wins with an impressive total of 15. Last but most definitely not least, Mahomes would become the first signal caller to win back-to-back championships in 20 years.

Yet, for those who focus on the tangible and not the emotive aspect of things, the Chiefs’ star will also pocket an extra $1.25 million. Indeed, Mahomes has an incentive included in his contract that sees him earn more over the next four years than any player who has ever played the Game before. From 2023 to 2026, he is set to earn $210.6 million but a win on Sunday would see that number increase to $211.85 million. The reason for that is down to the unique nature of his contract. If you didn’t know, Mahomes signed a staggering 10-year, $450 million contract extension with the Chiefs in 2020. Now, while you might think to yourself, ‘How have the Chiefs coped with that kind of cap hit?’, the reality is that where guaranteed money is concerned, Mahomes will actually see less cash than what others have been promised.

So, others earn more than Patrick Mahomes?

Yes, others do. If you’ve been following, you will likely know that this past summer we saw a number of head-turning quarterback deals, however, each came with a distinct twist. The Philadelphia Eagles’ Jalen Hurts, for example, became the highest-paid QB in NFL History - in April - in terms of average annual value. Then, there was the Baltimore Ravens’ Lamar Jackson who actually surpassed Hurts just a few weeks later. Next in line came the Los Angeles Chargers’ Justin Herbert who topped both Hurts and Jackson when he put pen to paper on a deal in July. Finally, in Week 1 of this most recent NFL season, we saw the Cincinnati Bengals’ Joe Burrow handed the biggest contract in NFL History with an average annual value of $55 million.

How does this affect Patrick Mahomes?

To be fair, it doesn’t. Not exactly. On the one hand, both Mahomes and the Chiefs have been planning to rework his deal for some time now. With the team now one win away from a second straight Super Bowl title, it’s understandable that his contract has taken a back seat. Yet, one can’t deny that in light of recent movements in the quarterback market, there could be a few added kinks to iron out. Even more so if the Chiefs manage to win the big Game this Sunday, something that would almost certainly justify Mahomes asking for more.

With that said, it is worth mentioning that back in September both parties agreed to a restructured deal that would see money reallocated in order to arrive at a scenario that is even more lucrative. As things stand, Mahomes’ deal is meant to be restructured every three years - give or take - assuming he continues to play at the level he does. Should he continue to play like the best in the league - he basically is - the Chiefs will in theory re-evaluate his deal after the 2026 season. That $1.25 million we mentioned earlier is what Mahomes is guaranteed each year that he is voted the league’s MVP and takes the Chiefs to the AFC Championship Game. While he managed to complete the feat last year, he could only complete half of that this year, as he finished seventh in MVP voting.

What about the Chiefs’ side of things?

As things stand, Mahomes’ cap hit in 2024 currently sits at $59.8 million, according to sources with access to the league’s internal salary cap system. That number should really be $58.55 million since he didn’t win the MVP and so as mentioned above, did not qualify for his $1.25 million bonus. If he and his teammates fail to beat the 49ers this Sunday, he will see a further reduction of $1.25 million.

Regardless, these are the details. What we can take as a certainty is that the Chiefs will seek to lower Mahomes’ cap number before the start of the new league year in March. Why? The roughly $37 million in cap space that they could free up, that’s why. As much as the Chiefs have been the dominant force in the NFL over the last five years, it’s come at a cost. If the franchise wants to continue competing at the top, it will have to reduce salaries and one good place to start would be the exorbitantly paid - though understandable - quarterback.