Patrick Mahomes remains the face of the Kansas City Chiefs, and his latest contract structure shows just how committed the franchise is to keeping it that way for years to come.

The Kansas City Chiefs renewed the contract of Mahomes running till 2033. And Spotrac's Michael Ginnitti shared the contract details via X on Friday.

The Chiefs' star has agreed to a reworked eight-year contract worth $504.75 million. The deal has an average value of $63.09 million per year, overtaking Dak Prescott's $60 million contract. This new contract is the largest ever in NFL History.

This season, the salary cap charge is $34.6M, which is 11.51% of the cap. His cap hits climb quickly after that, jumping to $90.3 million in 2027 before settling in the mid-$60 million to mid-$80 million range in later years, as per Spotrac.

The restructure goes beyond the headline numbers. While Mahomes received $150.25 million fully guaranteed at signing, the Chiefs also built in a series of rolling guarantees that activate throughout the life of the deal.

Beginning in 2028, future salaries and roster bonuses become fully guaranteed one year at a time. That approach gives Mahomes long-term security while allowing Kansas City to manage future cap commitments.

The deal also includes a $30 million roster bonus every season from 2027 through 2033, along with a $1 million annual workout bonus.

There is performance-based money available as well. Mahomes can earn an additional $17.5 million in incentives for major accomplishments, including Super Bowl victories and MVP-caliber seasons.

Mahomes previous deal, signed in 2020, was worth $450 million over 10 years. That contract set the early market tone, and Kansas City reworked it three times over six years, including salary conversions and bonus restructures that helped Kansas City manage cap space while keeping him at the center of the offense.

Now, this new agreement even reveals the Chiefs' planning for Mahomes contract.

Chiefs Salary Cap Strategy For Mahomes Contract

Patrick Mahomes' contract shapes how the team builds its roster each year, worth more than half a billion dollars.

The Chiefs manage the salary cap by keeping funds for future seasons. Every March, they restructure Mahomes' deal, turning salary into bonuses and making it over many years. The contract includes two void years so that the team can move part of the salary cost to future years.

This keeps Mahomes' cap number lower in the short term, but it will grow over time. By 2028, his cap hit is expected to go around $90.3M in the upcoming seasons. 

"Whenever Mahomes' unprecedented tenure in Kansas City eventually ends, the Chiefs will be left with a large amount of dead money the following two seasons (assuming an eventual retirement happens after June 1 of whichever year that may happen)," SB Nation's Jared Sapp wrote.

So when Mahomes leaves, Kansas City would have leftover money counting against their salary cap for a few years.

The team is betting on future salary cap growth from bigger TV and streaming deals to handle these rising costs without breaking their roster planning.

What is your take on Mahomes' contract restructuring? Let us know in the comments.

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Written by

Shreya Mishra

Edited by

Rudra Dubey