Breaking Down the Chiefs’ Cap Crunch: How Kansas City Can Carve Out Space in 2026
With the NFL informing teams that the 2026 salary cap will land somewhere between $301.2 million and $305.7 million, the Kansas City Chiefs are likely rooting for the high end of that range. Why?
Because they’re staring at an estimated $58 million over the projected $303.5 million cap - and the clock is ticking. The new league year kicks off on March 11, and by then, every team must be under the cap.
So how does general manager Brett Veach navigate this financial puzzle? Let’s dive into the most logical moves on the table - and why the Chiefs still have plenty of flexibility despite the daunting number.
Cap Casualties: Who Could Be on the Way Out?
First up, the cleanest route to cap relief: roster cuts. And there are a few big-name contracts that could be trimmed without much surprise.
Jawaan Taylor, the right tackle who signed a four-year, $80 million deal back in 2023, is a prime candidate. While Taylor’s blocking has been solid at times, his penchant for penalties and lingering injuries - including a season-ending elbow issue - have made his deal look less and less sustainable.
Cutting him would leave behind $7.4 million in dead money, but it would also free up a hefty $20 million. That’s the kind of move that makes sense both financially and on the field.
Mike Danna is another name to watch. The veteran defensive end saw his snaps drop significantly in the second half of the season, largely due to rookie Ashton Gillotte’s emergence.
Danna wrapped the year with just one sack and 25 tackles - not the kind of production that justifies his $8.9 million cap hit. A release here feels likely, unless he agrees to a pay cut with incentives baked in.
Drue Tranquill, who played a major role in the defense last season, is due $6 million in non-guaranteed salary. That’s not outrageous for someone who logged 85% of the defensive snaps, but the Chiefs may see a cheaper path forward. Fifth-rounder Jeffrey Bassa is already in the building, and linebacker is shaping up to be one of the deeper positions in the upcoming draft class.
Noah Gray, the backup tight end, could also be on the bubble. Cutting him would save around $4 million, though only about $3 million of that would be usable after a replacement salary kicks in.
More likely, Kansas City could revisit Gray’s contract after the draft, possibly asking him to take a pay cut tied to playing-time incentives. After putting up just 178 yards and no touchdowns, that conversation may not be a difficult one.
As for Kristian Fulton and Jaylon Moore, don’t expect the Chiefs to move on just yet. While releasing both would open up close to $13 million in cap space, each player is still owed his full 2026 salary.
That means Kansas City would essentially be paying them to play elsewhere. Neither lived up to expectations last season, but with depth at a premium, the Chiefs may choose to keep them around - at least for now.
The Big Two: Mahomes and Jones
Now let’s talk about the two elephants in the room: Patrick Mahomes and Chris Jones. Between them, they account for over $123 million in cap hits - Mahomes at $78.2 million and Jones at $44.9 million.
Mahomes’ number is definitely coming down. The only question is whether the Chiefs go with another restructure - potentially clearing $44.4 million - or hammer out anew deal altogether.
His current contract, signed in 2020, technically runs through 2031, but the structure tells a different story. With his salary dropping to an unrealistic $28 million in 2028, the Chiefs are essentially working with a window that closes after 2027.
That makes this offseason a logical moment to revisit the deal.
There’s no looming quarterback mega-deal elsewhere in the league this offseason, which gives Kansas City a clean runway to renegotiate without market pressure. A new contract could not only lower Mahomes’ immediate cap hit but also provide a roadmap for managing the cap through the prime years of his career. It’s less about squeezing pennies now and more about building a sustainable financial model around the face of the franchise.
Chris Jones, though, is a trickier situation. He’s locked in with $35 million guaranteed for 2026, so he’s not going anywhere this year.
But the Chiefs do have options. Restructuring his deal could free up to $22.5 million in cap space, though it would push more money into future years - and that’s where things get complicated.
If Kansas City is eyeing a clean break in 2027, they might prefer to leave his cap number untouched now and reap bigger savings later. Either way, the team has to weigh Jones’ on-field impact against the long-term financial implications of his deal, which runs through 2028.
Other Restructure Options
Beyond Mahomes and Jones, there are a couple of other contracts the Chiefs could tweak if needed.
Trey Smith, the hard-nosed guard, could free up $12.5 million with a restructure. But that would balloon his 2027 cap number to a potentially unmanageable $34 million. That’s a hefty price tag for a guard, no matter how reliable he’s been.
Creed Humphrey, meanwhile, could open up $8.9 million with a restructure - but the Chiefs may prefer to hold off. He’s already a likely extension candidate before his deal expires in 2029, and keeping his contract clean now gives the front office more flexibility down the line.
These moves aren’t off the table, but they’re more likely to be used as in-season levers or late-offseason adjustments once the team has a better sense of how much room it really needs.
Bottom Line: The Cap Isn’t a Crisis - It’s a Puzzle
On paper, being $58 million over the cap looks like a problem. In practice, it’s a challenge the Chiefs are fully equipped to handle.
A full restructure of Mahomes’ contract alone could wipe out more than three-quarters of that deficit. Pair that with expected cuts - Taylor, Danna, and Tranquill - and suddenly Kansas City could be looking at a $20 million surplus. That’s not just cap compliance; that’s room to maneuver in free agency.
And let’s not forget: Kansas City doesn’t need to make all these moves at once. The front office can stagger decisions based on how the market shapes up, how the draft unfolds, and which free agents become realistic targets.
Some cuts and restructures will happen early to get under the cap by March 11. Others can wait until the team has a clearer picture of what it wants - and what it can afford.
So while the numbers might look daunting now, don’t expect panic at Arrowhead. The Chiefs have a plan, the tools to execute it, and the kind of roster worth navigating the financial gymnastics for. The cap might be tight, but Kansas City’s window isn’t closing anytime soon.