The Kansas City Chiefs unexpectedly revisited Patrick Mahomes’ contract after already creating significant salary-cap flexibility earlier in the offseason through a restructuring. Instead of waiting another year, the organization added two seasons worth $239.05 million, extending the quarterback’s agreement through 2033. The revised eight-year package carries a total value of $504.75 million, averaging just over $63 million annually and making Mahomes the NFL’s highest-paid player. Performance escalators and incentives could push the overall figure to $522.25 million.
The agreement includes $237 million in traditional guarantees covering the first four contract years through 2029, with $150 million fully guaranteed immediately upon signing. The remaining compensation for the final four seasons is initially unsecured but gradually converts into guaranteed money as specific dates arrive. Roster bonuses become protected more than a year before payment, while base salaries are guaranteed during their respective league years.
Although the extension established a new financial benchmark, Mahomes receives almost no immediate benefit. His 2026 earnings remain unchanged, while his 2027 compensation increases by only $5.1 million. Through 2028, however, the revised contract provides an additional $38.5 million compared to the previous agreement.
Baltimore faces a familiar contract challenge
Mahomes’ extension immediately redirected attention toward Lamar Jackson’s ongoing negotiations with the Baltimore Ravens. Team owner Steve Bisciotti had hoped an extension would already be completed before the start of the 2026 league year, and general manager Eric DeCosta previously voiced confidence that an agreement would be reached. When those talks stalled, Baltimore instead restructured Jackson’s existing contract by converting nearly all of his 2026 base salary into a signing bonus while adding a void year to spread the cap charge. That maneuver created almost $40 million in cap relief but also inflated Jackson’s 2027 cap figure to more than $84 million.
Even after the restructure, the Ravens reportedly remain interested in reaching a long-term agreement. Jackson, who negotiates his own contracts without an agent, has remained consistent in refusing to publicly discuss the details. He has indicated that a fully guaranteed contract is no longer his objective and has repeatedly expressed his appreciation for both the organization and the city of Baltimore.
Jackson also earned praise from the coaching staff throughout the offseason. Head coach Jesse Minter highlighted the quarterback’s leadership, preparation, and energy, while Jackson participated in enough offseason activities to secure the workout bonus included in each of the final years of his current contract.
Why Jackson’s negotiating position remains strong
The ideal opportunity for Baltimore to finalize a deal would likely come before veterans report for training camp. Since Jackson handles negotiations personally, conducting contract discussions during camp or the regular season would be far from ideal. At present, he has two seasons and $104 million remaining on his contract, along with both a no-trade clause and language preventing the Ravens from using either the franchise or transition tag when the agreement expires after the 2027 season.
Despite an injury-filled 2025 campaign in which hamstring, ankle, toe, knee, and back problems affected his mobility and forced him to miss four games, Jackson still holds considerable leverage. Baltimore finished only 8-9 after entering the season among the Super Bowl favorites, but Mahomes also experienced a disappointing year before receiving his lucrative extension. The Chiefs quarterback posted career-low passing numbers, saw Kansas City finish 6-11, and suffered a serious knee injury late in the season, yet still reset the market.
Because of those circumstances, Jackson has a compelling argument for surpassing Mahomes financially. One possible framework would be a four-year extension worth $270 million in new money, averaging $67.5 million annually after accounting for the remaining years on his current contract. Such a proposal would exceed Mahomes’ projected cash earnings over the comparable period and once again establish Jackson as the league’s highest-paid player.
Patience could produce an even bigger payday
Unlike Mahomes’ extension, any agreement for Jackson would likely require meaningful increases in his compensation during the remaining years of his existing contract. Baltimore has considerably more available cap space than Kansas City, although matching Jackson’s previous record signing bonus would still be difficult without creating additional financial flexibility elsewhere on the roster. If the upfront bonus cannot reach that level, stronger guarantee protection could become a central part of negotiations, potentially exceeding Josh Allen’s NFL-record guarantee package.
The Ravens may already have provided a blueprint through Kyle Hamilton’s recent extension, which heavily front-loaded cash flow over the opening years of the agreement. Applying a similar structure to Jackson could result in fully guaranteed compensation across the first two seasons while delivering more than 60% of the new money by the conclusion of the second new contract year. Overall guarantees covering the first four seasons could approach $267.5 million.
Even so, Jackson’s strongest negotiating strategy may simply be waiting. Playing out the 2026 season before reopening discussions could place him in an even more powerful position, particularly if he returns to his previous level of play. With Jayden Daniels, Drake Maye, and Caleb Williams all becoming eligible for extensions in 2027 and at least one of them expected to raise quarterback salaries again, Jackson could allow the market to climb further before pursuing a new contract. If that scenario unfolds, Baltimore would have limited options to prevent him from reaching free agency in 2028.