Patrick Mahomes Contract Restructure Sets Up a Crucial KC Chiefs Decision

Remember when the Kansas City Chiefs were facing a salary cap crunch? Well, thanks to Patrick Mahomes' contract, that problem is over.

As reported by multiple sources on Tuesday, the defending champs have once again restructured their star QB's contract. Without getting into the nuts and bolts about how the process works, the move gives KC a bit over $20 million in salary cap space for the upcoming season. The Chiefs are now roughly $15 million under the ceiling.

That accomplishes the club's immediate goal of cap compliance. The new NFL season officially begins at 4 p.m. ET on Wednesday, March 13; teams must be under the salary cap by that point. Mahomes' restructure means that KC doesn't have to make any last-second moves just to balance the books.

But, looking at the bigger picture, the Chiefs now have a choice: What to do with that extra cap space? Even if the full $15 million isn't on the table (the draft class still has to get new contracts), there's now more wiggle room for additional moves.

Let's consider some of the options.

Keep L'Jarius Sneed and Run Things Back

This is largely the "status quo" option, but it's now on the table.

Earlier this offseason, the Chiefs applied their franchise tag to cornerback L'Jarius Sneed, keeping him on the books through the 2024 campaign. While that one-year tender's $19 million cap hit previously looked like a problem, it now fits under the ceiling without too much issue.

And with that reality, there's a temptation to largely run things back.

Sneed was a key part of Kansas City's 2023 success, as he traveled with the opposition's top receiver. He and the rest of the secondary's strength also set up the rest of the defense; it's a lot easier to bring pressure, for example, when you trust your defensive backs to hold up in one-on-one coverage. Add the returning Chris Jones into the mix, and the recipe for success is there.

Sneed, for his part, also sounds keen on coming back for 2024.

So where does the Chiefs' remaining money get spent?

Again, some will have to the incoming draft class, but the rest could be allotted to players who tested the open market during the legal tampering period without finding a new home. Maybe someone like Donovan Smith comes back for another season, giving general manager Brett Veach the chance to select a replacement without throwing him into the fire. Perhaps Clyde Edwards-Helaire will return as a cost-effective backup running back. There are also some defensive players, like Mike Danna and Derrick Nnadi, who could remain in KC if the price is right.

Are those the most exciting moves? Probably not. But, by that same token, it's tough to take issue with keeping most of the band together when you're coming off back-to-back Super Bowl titles.

Trade Sneed and Go Big Game Hunting

While the extra cap space from Mahomes' restructure does make keeping Sneed possible, it's not the only outcome.

Despite the available cap space and comments about chasing a third championship, the defensive back could still be traded. Sneed's name is still appearing in various rumors, so it's unclear what's on the cards.

From the Chiefs' perspective, what's the case for making a potential deal? One factor is draft picks. When you're a top team trying to chase championships, it's essential to strike the right balance between big-name stars and affordable players. Someone like Rashee Rice or Creed Humphrey, who's playing on their rookie contract, makes it easier to afford a Patrick Mahomes. Adding an extra second-round draft pick this year, for example, would keep that pipeline rolling.

But, again, what happens with the cap space then? If Kansas City already has around $15 million in space and trading Sneed would free up roughly $19 million more, then that's a sizable amount available for spending.

While many of the biggest-name receivers have already re-signed, the defending champs could chase someone like Calvin Ridley. Spotrac estimates his market value at around $17.5 million per season; perhaps that could push even higher in a bidding war. On the receiver front, Marquis "Hollywood" Brown could also be an option, but it's fair to wonder about his fit in the current Chiefs offense.

But with extra spending money, there are other options on the table. Maybe Tyron Smith is a big-time (albeit potentially short-term) upgrade on the offensive line. Perhaps there's a defensive addition in the mix, especially with Charles Omenihu coming off an ACL injury.

Is this strategy a bit riskier? Sure, you're (hypothetically) moving Sneed for draft picks, which may or may not pan out, and free agents. But when you're pushing for a three-peat, maybe it's time to roll the dice.

Keep Sneed and Chase a Smaller Deal

Although trying to "have your cake and eat it, too" can have negative connotations, it's possible that's what the Chiefs will aim to accomplish this offseason.

As mentioned above, Sneed is under contract for at least this season, and the club's current wage bill reflects that. But with around $15 million, there could be room to sign an external player without making any further changes.

Take someone like Curtis Samuel, for example, who seems like a logical fit for the Chiefs' offense. Given that he's coming off a three-year, $34.5 million contract, is there a possibility he'll fit under the salary cap? Maybe, but things might get tight. Elsewhere around the league, Josh Reynolds (most recently of the Lions) could also be a bargain signing; his most recent contract paid $6 million across two years, so there's room for a raise while keeping KC under the ceiling.

To be clear, this strategy is also a gamble. Not only are you banking on fitting a contract under the cap, but you're also shopping in the metaphorical bargain bin. And while the 2023 campaign ended happily, much of the early season underscored the need for quality and depth across the roster.

But, as always, it's better to be gambling from a position of strength. When you're coming off back-to-back titles and have an incredible individual talent under center, you can afford to take some risks.

It just remains to be seen which risks Veach and the Chiefs choose.