HOT NEWS!! Patrick Mahomes will be restructuring his contract to create an additional $21.6 million worth of salary-cap space for the Chiefs. The ultimate team player is going after the 3 peat.

Kansas City Chiefs Utilize Patrick Mahomes’ Contract to Free Up Cap Space

Since quarterback Patrick Mahomes inked his monumental 10-year, $503 million contract extension with the Kansas City Chiefs in July 2020, the team’s general manager, Brett Veach, has been leveraging the deal’s structure to manage the salary cap effectively.

Patrick Mahomes took the Super Bowl into his own hands - The Washington Post

In a recent move reported by ESPN’s Adam Schefter on Tuesday, the Chiefs executed a “restructuring” of Mahomes’ contract, resulting in the creation of $21.6 million in cap space.

Restructuring typically involves adjusting the distribution of a player’s base salary over an NFL season, often converting it into a signing bonus that can be prorated over the contract’s duration, up to five years.

However, in Mahomes’ case, the majority of his compensation comprises roster bonuses, paid on specific dates, allowing for a simpler adjustment process.

Veach’s approach doesn’t require renegotiating terms with Mahomes; instead, he can unilaterally modify how the roster bonuses are counted against the salary cap before specific dates each year.

Sources -- Patrick Mahomes to restructure Chiefs contract - ESPN

In this instance, Veach informed the league office that Mahomes’ $34.9 million roster bonus for 2024 was reduced to $7.9 million, with the remaining $27 million designated as a signing bonus.

Consequently, only a fraction of this amount ($5.4 million) impacts the team’s cap space, spread over the next five years.

Despite Mahomes’ expectation of receiving a $34.9 million payment in May remaining unchanged, the adjustment significantly alleviated the Chiefs’ cap burden.

With Mahomes’ 2024 cap hit reduced by $21.6 million, Veach’s simple administrative action effectively bolstered the team’s financial flexibility.

Patrick Mahomes does it again: Super Bowl MVP leads Chiefs to thrilling OT  win - The Athletic

Prior to this adjustment, the Chiefs were estimated to be slightly over the cap, including expenses such as the franchise tag on cornerback L’Jarius Sneed.

However, with the newfound cap space, totaling $21.3 million, Veach can now focus on addressing the team’s needs and making strategic roster moves.

In essence, the Chiefs’ ability to leverage Mahomes’ contract to maneuver within the salary cap underscores the quarterback’s significance both on and off the field.

Mahomes’ deal not only secures his position as the face of the franchise but also provides the team with valuable financial flexibility to sustain its competitive edge in the NFL landscape.

As Veach navigates the complexities of roster management, Mahomes’ contract remains a potent tool in the Chiefs’ pursuit of sustained success.

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