What happens when you restructure Mahomes contract every year

[xen 1,010,220]

For comparison, the first 3 years of Josh Allen's contract, after his 5th year option this year, the cap hits are 39m, 41m and 51m.

https://www.si.com/nfl/chiefs/gm-report/kansas-city-chiefs-patrick-mahomes-contract-restructuring-breakdown

Salary Cap Hits in a Given Year (Before restructure / After restructure)
2021: $24.81 million / $7.43 million
2022: $31.45 million / $13.23 million
2023: $42.45 million / $24.2 million
2024: $39.95 million / $28.18 million
2025: $41.95 million / $33.96 million
2026: $41.95 million / $37.40 million
2027: $59.95 million / $49.30 million
2028: $44.45 million / $51.6 million (The first year the future cap hit is above the current cap hit.)

From 2020 to 2026, the contract transformed from a seven-year/$227.9 million contract averaging $32.5 million per year to a seven-year/$149.73 million contract, averaging just $21.39 million a year.

[arrowhead 1,070]

Try and understand this. 😜

 

Patrick Mahomes Contract Details, Salary Cap Charges, Bonus Money, and Contract History | Over The Cap

[AFCWEST 1,238]

3 minutes ago, arrowhead said:

Patrick Mahomes Contract Details, Salary Cap Charges, Bonus Money, and Contract History | Over The Cap

I need an accountant to explain that. Im lost.

[xen 1,010,220]

30 minutes ago, AFCWEST said:

I need an accountant to explain that. Im lost.

Basically mahomes contract mostly consists of low salaries and the bulk of his money in roster bonuses tied to each league year. The contract states KC can convert roster bonuses to signing bonuses without Mahomes permission, allowing them to spread each hit put over 5 years.  Normally that would eventually be an issue however with the massive length of Patrick's contract it allows KC to do this every year through 2027 without having the bill come due (relatively speaking - cap hit vs % of total cap remains digestible).  After 2027 they will likely restructure the whole thing or start over.   It was a brilliant contract.

[qnet 1,150]

Looking at that chart, I thought Ching! Ching!  in 2022. I guess that will be spread out some now. Mahomes and his agent really did the Chiefs a favor with this contract. I hope they use it to their advantage.

[kkuenn 3,597]

1 minute ago, qnet said:

Looking at that chart, I thought Ching! Ching!  in 2022. I guess that will be spread out some now. Mahomes and his agent really did the Chiefs a favor with this contract. I hope they use it to their advantage.

Mahomes wants to win and not be the guy who takes up so much space they can't be contenders. He is still making a lot and we need to do him a solid to win more SBs. We do it by getting all we can for the team from this generosity.

[SEMO 6,811]

4 minutes ago, kkuenn said:

Mahomes wants to win and not be the guy who takes up so much space they can't be contenders. He is still making a lot and we need to do him a solid to win more SBs. We do it by getting all we can for the team from this generosity.

And running the ball against drop 8 coverage.

[xen 1,010,220]

22 minutes ago, qnet said:

Looking at that chart, I thought Ching! Ching!  in 2022. I guess that will be spread out some now. Mahomes and his agent really did the Chiefs a favor with this contract. I hope they use it to their advantage.

It was a smart contract on their end as well as Patrick is still getting the money.  They should teach the structure in contract class.  Btw you can thank Brandt Tilis as the genius behind this contract.  It's so good he actually got some GM run last year even though he's just a cap/contract guy.

[CranjisMcbasketball 780]

Just keep pushing back the bill until Mahomes retires, and then we just have a year where we go 0-17 and have his dead cap be 100 mil and barely field a team. Then start over fresh

[ATLchief 3,126]

It's almost as if Veach knows what he's doing...

[sith13 1,746]

10 hours ago, xen said:

Basically mahomes contract mostly consists of low salaries and the bulk of his money in roster bonuses tied to each league year. The contract states KC can convert roster bonuses to signing bonuses without Mahomes permission, allowing them to spread each hit put over 5 years.  Normally that would eventually be an issue however with the massive length of Patrick's contract it allows KC to do this every year through 2027 without having the bill come due (relatively speaking - cap hit vs % of total cap remains digestible).  After 2027 they will likely restructure the whole thing or start over.   It was a brilliant contract.

Yep, it was basically a statement saying he'll be here and he'll be paid for quite a while. However I doubt either Hunt or Mahomes actually expect this contract to be honored. The likely scenario is that it'll be around for 5-6 years and then Mahomes gets a new extension which we will need accounting professors to explain us.