Patrick Mahomes and the Kansas City Chiefs signed a contract in 2020 that shocked the NFL. While many expected Mahomes to sign a contract worth huge numbers in terms of salary and bonuses, not many expected a deal that would extend over a decade and with a value worth potentially over half a billion. Let’s examine the details of the contract for Mahomes and his net worth as of September 2023.
Editor’s Note: On September 18, ESPN’s Adam Schefter reported that Mahomes and the Chiefs have restructured his agreement, giving the QB $210.6 million between 2023 and 2026, the most money in NFL history over a four-season span. His compensation for those years is now guaranteed.
The Chiefs and Patrick Mahomes have restructured his agreement, giving him $210.6 million between 2023 and 2026, the most money in NFL history over a four season span. His compensation for those years is now guaranteed. Also, the Chiefs and Mahomes plan to re-visit the agreement… pic.twitter.com/7a2vlt9Si2
— Adam Schefter (@AdamSchefter) September 18, 2023
Patrick Mahomes’ Contract Details
Mahomes’ contract is a 10-year, $450 million deal that includes $141.482 million in guarantees. His average annual salary is $45 million, and the contract contained a $10 million signing bonus. In 2023, Mahomes’ contract expects to count for $49.293 million against the Chiefs’ salary cap, with a base salary of $5.5 million.
While the deal is officially a 10-year contract extension worth $450 million, it was an extension to the remaining year of his rookie deal and his fifth-year option. Across the entire 12 years, the base value of the contract is $477.6 million.
There is the opportunity for Mahomes to earn another $2.5 million a year in incentives between 2022 and 2031. If he hits all of those, the contract value would top the $500 million mark.
For the 2023 season, Mahomes will count for $49.293 million against Kansas City’s salary cap. That cap number is broken down as such:
- Salary: $5.5 million
- Roster Bonus: $34.4 million
- Signing Bonus (Prorated): $2 million
- Restructure (Prorated): $4.343 million
- Workout Bonus: $550,000
- Incentives from 2023: $1.25 million
Winning the AFC Championship Game: $1.25 million
Winning the NFL MVP Award: $1.25 million - 2023 Salary Cap Number: $39.293 million
The Chiefs do have the option to reduce that cap number. They can pay the roster bonus as a signing bonus, spreading the cap hit over the next five years (2023-2027). That would prorate to $6.88 million per year and reduce Mahomes’ salary cap number to $20.52 million.
MORE: 2023 NFL Salary Cap Space by Team
Doing so would push Mahomes’ cap number over $50 million in 2024, 2025, and 2026, while pushing it over $65 million in 2027. Alternatively, Kansas City could convert some of the roster bonus to a signing bonus and spread a lower amount over the five years but reduce the cap less this year.
Mahomes’ Contract Has a Rolling Guarantee Structure Built In
Mahomes’ contract is extremely convoluted in terms of guarantees. The $141.482 million in guarantees only encompasses the first five years of the deal to 2024. However, the rolling guarantees in the deal extend right through the contract, as follows (all third day of the league year):
- 2023: 2025 roster bonus + workout bonus fully guarantees
- 2024: 2025 salary + workout bonus fully guarantees
- 2025: 2026 roster bonus fully guarantees
- 2026: 2026 salary + workout bonus, 2027 roster bonus fully guarantees
- 2027: 2027 salary + workout bonus + 2028 salary + 2028 roster bonus fully guarantees
- 2028: 2029 salary + workout bonus & 2029 roster bonus fully guarantees
- 2029: 2030 salary & 2030 roster bonus fully guarantees
- 2030: 2031 roster bonus fully guarantees
- 2031: 2031 base salary fully guarantees
What Will Mahomes Count Against the Chiefs’ Cap Each Year?
Mahomes’ cap number fluctuates between $5.35 million and $59.95 million during the life of the contract.
- 2023: $49.293 million
- 2024: $44.293 million
- 2025: $46.293 million
- 2026: $41.95 million
- 2027: $59.95 million
- 2028: $44.45 million
- 2029: $44.95 million
- 2030: $50.45 million
- 2031: $52.45 million
Mahomes’ Net Worth
Calculating the net worth of a person is different from their salary. Mahomes may have a 10-year contract extension worth $450 million with potential earnings of $475 million, but his net worth is significantly less than that. According to various sources,Mahomes is currently worth $40 million.
Mahomes’ NFL career earnings as of Feb. 9, 2023, are $78.154 million. If Mahomes plays out his entire contract with the Chiefs, his earnings from the NFL would be at least $492.704 million and could be higher depending on how many incentives he hits during the next nine years.
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About Me
I am a passionate sports enthusiast with a deep understanding of the intricacies of professional sports contracts, particularly in the context of the National Football League (NFL). My expertise in this area stems from years of following and analyzing player contracts, salary cap implications, and the financial dynamics of professional sports leagues. I have closely studied the career trajectories of numerous athletes and have a comprehensive understanding of the financial aspects of their contracts, including the nuances of guaranteed money, incentives, and cap hits.
Patrick Mahomes' Contract and Net Worth
Patrick Mahomes, the star quarterback of the Kansas City Chiefs, signed a groundbreaking 10-year, $450 million contract in 2020, which included $141.482 million in guarantees. This deal was unprecedented in its length and value, setting new benchmarks in the NFL for player compensation. The contract also featured a $10 million signing bonus and the potential for additional earnings through incentives, with the opportunity to surpass the $500 million mark if all incentives were achieved.
In September 2023, Mahomes and the Chiefs restructured the agreement, with the quarterback set to receive $210.6 million between 2023 and 2026, making it the most lucrative four-season span in NFL history. Notably, his compensation for these years is now guaranteed, further solidifying his financial position within the league.
The contract's complexity is evident in the breakdown of Mahomes' compensation for the 2023 season, where he is expected to count for $49.293 million against the Chiefs' salary cap, with a base salary of $5.5 million. The deal's base value across the entire 12 years amounts to $477.6 million, with the potential for additional earnings through incentives, further highlighting the intricacies of his compensation structure.
Furthermore, the contract includes a rolling guarantee structure, extending guarantees throughout the duration of the deal, with Mahomes' cap number fluctuating between $5.35 million and $59.95 million annually. This demonstrates the long-term financial implications and considerations associated with his contract.
Despite the substantial value of his contract, it's important to note that Mahomes' net worth is distinct from his salary. While his contract extension is valued at $450 million, his current net worth is estimated to be $40 million, reflecting the difference between earnings and overall wealth. As of February 9, 2023, his NFL career earnings stood at $78.154 million, with the potential for significant additional earnings if he fulfills the terms of his contract with the Chiefs.
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