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Mahomes / Chiefs Negotiations Have (completed)

CloakNNNdagger

Hall of Fame
Report: Chiefs, Patrick Mahomes commence contract negotiations
May 28, 2020, 11:47 AM EDT

When it comes to signing a young franchise quarterback to a second contract, the sooner the team gets it done, the cheaper it will be. The Chiefs officially have commenced the process of getting a long-term deal done with quarterback Patrick Mahomes.
Sam Mellinger of the Kansas City Star reports that negotiations between the Chiefs and Mahomes have begun.

The best player in the NFL after only two seasons as a starter and already on track to be one of the best to ever play the game, Mahomes deserves to be the highest paid player in football. Many have suggested that he’ll be the first player to crack the $40 million-per-year threshhold.

With two years left on his rookie deal, it won’t cost $40 million per year to get to $40 million per year, given the way the NFL and NFL Players Association values contracts. A five-year, $200 million extension (i.e., $40 million per year in new money) would become, given the money he’s due to make in 2020 ($2.794 million) and 2021 ($24.837 million), a seven-year contract with an annual value at signing of $32.5 million.

For the Chiefs, the prospect of getting Mahomes committed through 2026 at $32.5 million per year is a ski-mask bargain. That could result in Mahomes wanting a shorter-term deal, like a four-year extension. At $40 million per year in new money, a four-year extension would cost the Chiefs $31.27 million per year at signing. Again, another ski-mask bargain.

When fans see that Mahomes is worth $40 million per year (he is), they’ll likely think he’s getting $40 million per year at signing. But giving Mahomes a deal worth $40 million per year at signing would drive the new-money average through the roof. If, for example, the Chiefs were to rip up the two years left on Mahomes’ current deal and replace it with a six-year, $240 million contract (i.e., $40 million per year at signing), the new-money average would become $53 million per year.

The ultimate challenge becomes finding a way to give Mahomes what he has earned without wrecking the team’s salary-cap situation. And that’s why Mahomes should be the first player to have his compensation tied to salary-cap percentage.

Such a contract would have specific salary figures for each year of the deal (which would protect him against a drop in the salary cap), along with a commitment that his compensation would always reflect at least, say, 15 percent of the team’s total salary cap. As the cap keeps going up (after the dust settles on the pandemic it surely will), Mahomes would be protected against his deal becoming obsolete, without being perceived as a salary-cap hog.

Whatever his pay, there would always be, for example, 85 cents on the dollar left to put a team around him. Or 84. Or 83. Whatever the two sides decide the best number is, that’s the amount that will be left, year-in and year-out.

Mahomes has made it clear that he wants to leave enough money on the table for other players. He could, if he wanted, take a harder-line position, telling management that it’s their job to manage the cap and to put quality players on the field with him. If the two sides find a way to peg his pay to a specific, predetermined percentage of the salary cap, there will be no issue regarding whether he’s getting too much or not enough. Whatever the cap, he’ll get the same piece every year, relative to the rest of it.

THE REST OF THE STORY
 

badboy

Hall of Fame
Someone with math skills please explain the 53 million per average. If he can be brought in around 32 million per average I would think that could bring Watson in about $28 m which is more acceptable to me. Still hoping A new deal isn't signed until after this season.
 

Double Barrel

Moderator / Admin
Staff member
Contributor's Club
Hopefully he doesn't take a team friendly deal and hurts the Chiefs salary cap of the ability to stack the team.
If he's smart, he'll follow Brady's lead, negotiate a team-friendly deal (and make it up in marketing deals), and marry a hot, rich wife.

Even if he breaks the bank, he's so awesome that he'll make mediocre players good. And now with a championship already secured, he won't have the pressure on him to win his first one.
 

Texecutioner

Hall of Fame
If he's smart, he'll follow Brady's lead, negotiate a team-friendly deal (and make it up in marketing deals), and marry a hot, rich wife.

Even if he breaks the bank, he's so awesome that he'll make mediocre players good. And now with a championship already secured, he won't have the pressure on him to win his first one.
True for the most part but he won't be as awesome without elite level talent and great blocking for his entire career. He's had crazy talent to start his career. People forget that last season Mahomes wasn't nearly as good as the season before. He was talent wise, but he got banged up some and Hill didn't play all season. Those things will likely flare up more as his career goes on. Hopefully any way.
 

Corrosion

Idealist
Staff member
Someone with math skills please explain the 53 million per average. If he can be brought in around 32 million per average I would think that could bring Watson in about $28 m which is more acceptable to me. Still hoping A new deal isn't signed until after this season.

Some of the "new money" is being spread over the two remaining years of his current contract which lowers the average of the future years.
 

badboy

Hall of Fame
Yeah I get that but where does 53 come in? 53 avg per year even at 6 years would be a $300 m deal and no one will pay that no matter how paid. The only way I can see it is if 150 million is in the final year and it's not guaranteed as an example.
 

gs27

Veteran
Yeah I get that but where does 53 come in? 53 avg per year even at 6 years would be a $300 m deal and no one will pay that no matter how paid. The only way I can see it is if 150 million is in the final year and it's not guaranteed as an example.

It is because of what the Chiefs already have him locked in at for 2020 and 2021 if they choose to. What they are saying is if they rip up the current deal (which pays Mahomes 2.8 million in 2020 and 24.8 million in 2021 as 5th year option) and replace it with a deal that signs Mahomes to 6 years (2020, 2021, 2022, 2023, 2024, 2025) for 240 million it makes the 4 new years that he isn't already booked through (2022, 2023, 2024, 2025) worth 53 million each.

240 million - 2.8 million - 24.8 million = 212.4 million divided by 4 new years = 53 million per new year
 
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KoolAid Sipper

Waterboy
It is because of what the Chiefs already have him locked in at for 2020 and 2021 if they choose to. What they are saying is if they rip up the current deal (which pays Mahomes 2.8 million in 2020 and 24.8 million in 2021 as 5th year option) and replace it with a deal that signs Mahomes to 6 years (2020, 2021, 2022, 2023, 2024, 2025) for 240 million it makes the 4 new years that he isn't already booked through (2022, 2023, 2024, 2025) worth 53 million each.

240 million - 2.8 million - 24.8 million = 212.4 million divided by 4 new years = 53 million per new year
Thank you for breaking this down and I see the plain math that makes sense to the numbers on the surface. The way that these contracts are valued still seems like funny money to me. Also wouldn't a signing bonus that's stretched over the lifetime of the contact effect that formula? Nevermind, I'm going to confuse myself more. Anyway, I would think these players would want those contracts this year vs after a season that could have pandemic effects on salary caps and contracts.
 

Texecutioner

Hall of Fame
Thank you for breaking this down and I see the plain math that makes sense to the numbers on the surface. The way that these contracts are valued still seems like funny money to me. Also wouldn't a signing bonus that's stretched over the lifetime of the contact effect that formula? Nevermind, I'm going to confuse myself more. Anyway, I would think these players would want those contracts this year vs after a season that could have pandemic effects on salary caps and contracts.
Well they have to have fans in the stands this season or what is the point?

They can't make much money. They'll have to.

If no fans in the stands they lose a ton or they end up squashing the entire season.
 

CloakNNNdagger

Hall of Fame
Adam Schefter reports that Mahomes and the Chiefs have agreed to an extension that runs through the 2031 season. No details as to the financials including if it's tied to Chiefs percentage of salary cap.
 

badboy

Hall of Fame
Still not sure how it impacts Watson as to short term deal recently discussed or long term deal. I am very interested in how the contract of Mahomes is paid out. This also may encourage KC to trade Chris Jones.
 
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KoolAid Sipper

Waterboy
I think its creative and gives both the team and player options for exiting. But I think I read somewhere that the true guaranteed amount at signing is $63M and in essence is a pay as you go type deal.
 

Texecutioner

Hall of Fame
I love capitalism and all but I’ve hated how the NFL owners extort their communities since the Oilers ditched Houston. That was the nail in the coffin for any city trying to stand up to a “big sports franchise”
That isn't what he is talking about that will do them in. It is sports becoming political. People will stop watching it for that, and there is already evidence of that from 2016.
 
I was reading about the extension and the author said he made a big mistake. As only I think 61mil is guaranteed and as good as he is a shorter term deal would pay him more. Something like a 3yr 100-some mil and 50+ guaranteed. And then if his play stays as it is, a new deal could be in the 150+ mil for 3yrs and again more guaranteed money. The author also said that the clause's in the deal while perhaps fair for a player who is so outgoing and athletic are safety nets. That a single violation, viewed by the Cheifs could get him in hot water or loose a ton of money off the deal.

What is your opinion about this extension? I honestly can see the author has a good point but Mahomes seems happy and so are the Cheifs. I'm unsure which side I agree with more.
 

badboy

Hall of Fame
Are there any threads started that people don't want others to read..?
I took that to mean don't read title then begin pontificating which happens often. As for the topic, if KC and Player are happy, it would be a good contract. Can that change as time passes? As with any relationship, of course. Some need respect and some focus only on money. I think it is very good contract for all sides including giving us on MB
Something to talk about.
 
Never in a million years did I think relaying an option based article about Mahomes extension would be an issue. And seeing more of them are popping up, I thought it would be a good talking point. So, here is a link to one of many articles I had made a thread about. I'm curious if YOU feel he made a mistake based on the information used in this (and any others you find) article.

 

JB

Old Curmudgeon
Contributor's Club
Never in a million years did I think relaying an option based article about Mahomes extension would be an issue. And seeing more of them are popping up, I thought it would be a good talking point. So, here is a link to one of many articles I had made a thread about. I'm curious if YOU feel he made a mistake based on the information used in this (and any others you find) article.

So why a new thread if you're going to have the discussion here?
 

steelbtexan

King of the W. B. Club
Contributor's Club
Maybe a mod can merge the Mahomes thread.

Mahomes contract ensures that the Chiefs will be SB contenders for the next 3 yrs. A very good contract for both sides.
 
Still not sure how it impacts Watson as to short term deal recently discussed or long term deal. I am very interested in how the contract of Mahomes is paid out. This also may encourage KC to trade Chris Jones.
I posted about that. Basically, Watson wants to get the most he can. So, a shorter deal with more guaranteed means either he can cash in later for more or if he became a FA. If you play well on a 3yr 80mil deal...then you can ask for a 3yr 100+ mil and get it. On the 80mil if 1/2 or more is guaranteed the bigger deal later would result in more money guaranteed.

It also might be he doesn't want to be tied to OB and a shorter deal gives him an out sooner if OB stays and the team has not made an AFC title game or SB in 3yrs.
 
So why a new thread if you're going to have the discussion here?
Because it's easier to find and while still about his contact. A total different aspect and question. Along with articles on why some feel it's a bad deal.
It is what it is however. Just thought it would be a good separate topic.
 

badboy

Hall of Fame
I posted about that. Basically, Watson wants to get the most he can. So, a shorter deal with more guaranteed means either he can cash in later for more or if he became a FA. If you play well on a 3yr 80mil deal...then you can ask for a 3yr 100+ mil and get it. On the 80mil if 1/2 or more is guaranteed the bigger deal later would result in more money guaranteed.

It also might be he doesn't want to be tied to OB and a shorter deal gives him an out sooner if OB stays and the team has not made an AFC title game or SB in 3yrs.
My focus is more how Mahomes impacts Chris Owens. Info is TE Travis Kele 31 YOA also wants extension on his remaining 2 years of contract signed 2016. I think if I were KC I would use the current $6 m to satisfy Kelce and lower Jones' 16 with extension.
 

badboy

Hall of Fame
Should the Chiefs make the politically correct move and take "Chiefs" out and rename the team.....the Kansas City Mahomes?
Would it make difference if Mahomes took Chief as a nickname? The Old Ones would probably not like those wishing to be called Native Americans as they are not. Like me they are Americans whose ancestors came from other places.
 

Boris

Veteran
I love capitalism and all but I’ve hated how the NFL owners extort their communities since the Oilers ditched Houston. That was the nail in the coffin for any city trying to stand up to a “big sports franchise”
i suppose it started with the Brooklyn Dodgers & NY baseball Giants.
wouldn't "the nail in the coffin" be Browns to Baltimore?

interested in feedback from those better informed
between Bud & Art
whose cause for move was more legit?
 

dream_team

Hall of Fame
Chris Jones just signed a big contract w/ the Chiefs, making over 20 mil a year. What am I missing here? Where is all this money coming from?
 

Mr teX

Hall of Fame
They are going for it this year.....but the bill will come due by 2021...Kelce, Duvernay-Tardiff, Schwartz, & Fisher will all be looking to get new contracts/extensions. If they resign all those guys to protect the franchise & keep him comfy, it pretty much means, Clark & probably Mathieu are gone. Hitchens is probably already gone after this year with them drafting Willie Gay...So is Watkins with Hardman still on his rookie deal. That's alot of key veteran leadership potentially leaving. This isn't even factoring in Hill who after 2020 will command 33 mil over the next 2 years.....a guy who has already started to show signs of wear & tear with that collarbone.
 

paycheck71

Hall of Fame
i suppose it started with the Brooklyn Dodgers & NY baseball Giants.
wouldn't "the nail in the coffin" be Browns to Baltimore?

interested in feedback from those better informed
between Bud & Art
whose cause for move was more legit?
That wasn't the same situation as Houston. Browns just left w/o giving Cleveland a chance. At least in Houston we know the city wasn't going to build the Oilers the stadium Bud wanted. But both Oilers and Browns happened around the same time.
 

badboy

Hall of Fame
Chris Jones new $ begin 2022, remains to be seen how the $32 m due at signing impacts cap.

As of now KC has $36 m 2021 and $109 m 2022. As we all know, Covid still has to be dealt with...
 


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