How the Kansas City Chiefs are Taking Advantage of Patrick Mahomes’ Bargain Contract
In 2020, Patrick Mahomes signed an unprecedented 10-year, $450 million contract extension with the Kansas City Chiefs, making him the highest-paid player in NFL history. But despite the massive salary, Mahomes could be as low as the ninth highest-paid quarterback by the end of the 2023 NFL offseason, and could even slide outside of the top 10 by the end of the 2024 offseason. That would be absurd given the caliber of quarterback Mahomes is and what he has accomplished and can still accomplish during his career. But it’s possible given the state of the QB market and the nature of his contract.
The impending contract extensions for the Baltimore Ravens’ Lamar Jackson, Philadelphia Eagles’ Jalen Hurts, Cincinnati Bengals’ Joe Burrow and Los Angeles Chargers’ Justin Herbert could push Mahomes down the QBs list if some of them sign deals worth more than $46 million a year. The Jacksonville Jaguars’ Trevor Lawrence is also up for an extension after next season. Mahomes is far and above the best quarterback since he became a full-time starter in 2018, but he likely won’t ever be the highest-paid player at his position.
The Chiefs are capitalizing on Mahomes’ contract by keeping most of their best in-house players, finding quality yet inexpensive veterans at positions of need and drafting exceptionally well. Save for Tyreek Hill, whom the Chiefs traded away for a bounty of draft picks, Kansas City locked down its players before Mahomes’ deal takes a bigger chunk of the Chiefs’ salary cap. Tight end Travis Kelce and defensive tackle Chris Jones were the big ones as both re-signed in the same month Mahomes got his big extension, five months after the Chiefs won the Super Bowl against the San Francisco 49ers.
To fill in the rest of the gaps, the Chiefs signed or traded for impactful players at reasonable rates. Running back Jerick McKinnon joined K.C. in 2021 and finished second on the team with 10 touchdowns in 2022. Receivers JuJu Smith-Schuster and Marques Valdes-Scantling signed short-term deals worth just $8.7 million combined in 2022. Kansas City traded for oft-injured but supremely talented former first-round receiver Kadarius Toney as well, who is still on his rookie deal.
The Chiefs also have drafted incredibly well since Mahomes signed his contract. Kansas City added linebacker Willie Gay and cornerback L’Jarius Sneed in 2020, then linebacker Nick Bolton and offensive linemen Creed Humphrey and Trey Smith in 2021. The Chiefs used part of the haul from the Tyreek Hill trade to find trade up for cornerback Trent McDuffie and drafted pass rusher George Karlaftis, receiver Skyy Moore and seventh-rounders in cornerback Jaylen Watson and running back Isiah Pacheco in 2022. Moore and Pacheco each scored in the Super Bowl win over the Eagles.
This doesn’t debunk the rookie quarterback contract theory. But what the Chiefs have done with Mahomes is a rudimentary blueprint for how other teams with talented quarterbacks should try to navigate a contract extension. The Chiefs are in the position they’re in because of how they’ve built a roster around a quarterback who is at the top of his game but not paid as such. Mahomes is good enough to be worth as much as whoever sits at the top of the QB market.
There will be a reckoning for the Chiefs when Mahomes’ cap hit balloons to $59.95 million in 2027. But that’s already almost identical to the $59.51 million Aaron Rodgers will make in 2023 if his current contract holds. There is a possibility that Mahomes’ salary in 2027 — if he’s still playing on that deal — is still a bargain given the trajectory of the QB market. The Chiefs have arguably the best quarterback of all time on the best contract of all time. And that makes their window to contend wide open for the future.
