The Kansas City Chiefs have made a strategic move by restructuring quarterback Patrick Mahomes’ contract, according to a source who spoke with The Associated Press. This adjustment is aimed at providing the Super Bowl champions with essential salary cap flexibility. Although the specifics of the financial arrangement remain undisclosed, the restructuring is set to significantly reduce the contract’s impact on the salary cap, which was initially projected to exceed $58 million for the upcoming season.
Key Points from the Restructuring:
Quick Read
- Salary Cap Relief: The modification has successfully generated over $21 million in salary cap space, which the Chiefs can allocate to various team enhancements.
- Strategic Allocation: The additional funds could be utilized for several purposes, including acquiring a wide receiver, securing a new left tackle to safeguard Mahomes, or retaining key free agents.
- Previous Adjustments: This isn’t the first time Mahomes has altered his contract for the team’s benefit; a similar adjustment was made in 2021 to alleviate financial constraints.
- Other Signings: The Chiefs have also secured key players such as All-Pro defensive tackle Chris Jones with a lucrative contract that’s cap-friendly for this year, and linebacker Drue Tranquill, who re-signed before free agency commenced.
- Implications for L’Jarius Sneed: The newly available cap space might impact decisions regarding cornerback L’Jarius Sneed, who was tagged with a franchise tag, potentially allowing the Chiefs to either retain him on this tag or negotiate a long-term agreement.
This strategic financial maneuvering by the Chiefs underscores their commitment to maintaining a competitive team structure while managing salary cap limitations effectively.
The Associated Press has the story:
The Chiefs restructure Patrick Mahomes’ contract for salary cap relief
Newslooks- KANSAS CITY, Mo. (AP) —
The Kansas City Chiefs have restructured quarterback Patrick Mahomes’ contract, a person familiar with the decision told The Associated Press on Wednesday, giving the Super Bowl champions some much-needed salary cap space.
The person spoke to the AP on condition of anonymity because the financial details were not public.
By restructuring the contract, which would have counted more than $58 million against the cap for the upcoming season, the Chiefs created more than $21 million to use elsewhere. That could include a much-publicized pursuit of help at wide receiver, their need for a new left tackle to protect Mahomes’ blind side, or in re-signing their own free agents.
Mahomes also adjusted his 10-year, $450 million contract in 2021 to help the Chiefs with their financial situation.
The Chiefs already signed All-Pro defensive tackle Chris Jones to a five-year, $158.75 million contract, which included $95 million guaranteed over the first three years. But that deal was structured so that it only cost $7.35 million against the cap this year.
Backup linebacker Drue Tranquill also signed a three-year, $19 million deal to return before Wednesday’s start to free agency.
The creation of some additional salary cap space also could mean that L’Jarius Sneed, who quietly emerged as one of the NFL’s best cornerbacks last season, could remain in Kansas City. The Chiefs used the franchise tag on him, which would equate to a one-year, $19.8 million deal, but many expected them to ultimately trade Sneed for draft compensation and salary cap relief.
Now, the Chiefs could keep him at the tag number or use their newfound wiggle room to sign him to a long-term deal.
