8 questions we have about Patrick Mahomes’ half-a-billion dollar contract extension

Patrick Mahomes may be the only player to get over $500 million, but there’s reason for him not to like the deal.

Kansas City Chiefs quarterback Patrick Mahomes signed the most lucrative contract in sports history, with a 10-year deal that could be worth up to $503 million, according to NFL Network. That’s right: in 10 years, Mahomes could earn a half a billion dollars. Of course, that’s not really how NFL contracts work. Players rarely play to the end of their deals. The nominal money promised is never what actually gets paid.

It’s all just a farce. Does that mean Mahomes’ farcical deal is the biggest farce in NFL history? Probably. But because of how complicated NFL deals can be, I have so many questions about this one, which is an unprecedented commitment for any sports team and for any football player.

1. It’s nice to think this is a 10-year deal. But how long will it really last?

It appears, via Spotrac, that Mahomes does not have an easy out of the deal. If he wanted out, his best bet would be to demand a trade or commit to a holdout. The Chiefs, meanwhile, have unbelievably easy outs from 2024 through the end of the deal. From 2025 through 2031 (when robots will probably replace human quarterbacks anyway), the Chiefs can cut Mahomes at no cost to their salary cap.

Let that sink in.

They took on practically almost no risk in this deal while somehow inking the most talented quarterback of a generation who just won the MVP and the Super Bowl in his first two seasons as a starter. Mahomes, meanwhile, must feel good about spending a decade in Kansas City — because unless the Chiefs decide they don’t want him anymore, he doesn’t have much leverage in this deal.

2. How did this cap fit under the cap so easily?

There’s actually an answer to this one. The extension is built upon the foundation of Mahomes’ rookie deal, which extends through 2021. That means that Mahomes’ salary figures and his roster bonuses — which comprise the bulk of his deal — don’t hit the cap until 2022. The Chiefs gave Mahomes big money while stalling for that money to actually hit the salary cap. Instead, they gave him a humble $10 million signing bonus, which they can pro-rate over the next 12 years (because of the 10-year extension added to the first two years of Mahomes’ current deal).

Even so, I’m still a little confused about how the Chiefs managed to only adjust their cap $30,000 in 2020 after signing Mahomes to a $500 million deal. That $10 million signing bonus should add $833,333 to the cap, even if the rest of the money is deferred into future years. Somehow, however, the Chiefs have incurred just a $30,000 cap hit in 2020, per Spotrac.

Like I said: NFL contracts are weird.

3. So when does Mahomes actually start making the big bucks?

In 2021, he’ll make $24,806,905, so long as he’s on the roster. In 2023, he can make $42,450,000. And in 2027, he can make $59,950,000 for the season.

4. How are they going to maneuver this behemoth in the next 5 years

It’s pretty rare for four or five year deals to go without adjustment. So a 10 year deal? These terms aren’t likely to last. And because so much money is tied into a roster bonus (and almost none of it is tied up in signing bonus), the deal is pretty malleable. If the Chiefs need to create cap space in future years, they can start converting his salary to signing bonus. That’s why keeping his initial signing bonus at a minimum was a good call for the team.

5. What if things go wrong?

Mahomes is basically stuck.

The Chiefs, meanwhile, could bail easily in 2023 while suffering $4 million in dead cap. Or Kansas City could bail in 2024 with $2 million in dead cap. Or it could wait until 2025 when, as mentioned, it would suffer no cap penalty.

Of course, this deal is in place, because the Chiefs would never want to move on from Mahomes in their wildest dreams. But of course, NFL stars don’t last forever — and sometimes they decline or disappear much faster than anyone could possibly anticipate. If injuries take a toll or his play somehow dips, he would find himself in a position where the Chiefs could easily part ways with him without suffering any cap ramifications, which is crazy.

6. Should Patrick Mahomes buy a team and work for himself?

Probably.

7. Are we sure Mahomes is getting paid enough?

Let’s ignore the elephant in the room. Let’s not address whether an athlete deserves $503 million dollars for playing a sport. That’s another discussion entirely.

When mulling how much Mahomes should make, the number should have been astronomical, considering the deals going to quarterbacks around the NFL. And of course, a half a billion dollars is just that. But Mahomes didn’t actually guarantee himself that much money. By the 2023, the Chiefs can basically walk away from the deal, if they needed to. And the Chiefs have scaled Mahomes’ earning power in a way that he doesn’t really start making what he’s worth until 2023, and by that point, the market could surpass his earning power at $43 million. So, honestly, I don’t think Mahomes got the deal he deserved. He did his team a number of favors, likely in hopes of winning.

8. Should Chiefs fans be happy with this deal?

Absolutely. Mahomes, the best quarterback in the NFL, is tied to Kansas City indefinitely — and he seems to have graciously worked with the team to give them a friendly deal. This seems even more generous than what Tom Brady did for the Patriots for his 20-year career in New England. And if Mahomes continues on his torrid pace, his career could be as successful.

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