Updated: Jul 24, 2020
Patrick Mahomes signed a record-breaking 10-year deal with the Kansas City Chiefs worth up to $503 million dollars.
So what does this mean? How much will he actually get and how long will he be with the Chiefs? Why doesn’t it mean Mahomes will receive $50.3 million per year? We will breakdown the contract numbers for you and delve into the murky world of NFL and US sports contracts.Mahomes has signed the largest contract for a professional athlete in the American Major leagues surpassing the previous best $426.5 million signed by Mike Trout of the Los Angeles Angels.
This is the tweet from Mahomes agent
Congrats to @PatrickMahomes on agreeing to terms on a 10-year extension worth $503 Million. He gets $477M in guarantee mechanisms and ability to have outs if guarantee mechanisms aren’t exercised. No trade clause. First half billion dollar player in sports history. History made. https://twitter.com/SteinbergSports/status/1280264195431297024?s=20
So how exactly does this work and what are guarantee mechanisms?
Tom Pelissero breaks down the structure of the deal in his tweet below.
Here's a breakdown of the cash flow on Patrick Mahomes' new contract with the#Chiefs. It'll take more than one tweet to fully explain, but the bonuses have varying vesting dates that paint a fuller picture of how the deal works.
ere's a breakdown of the cash flow on Patrick Mahomes' new contract with the #Chiefs. It'll take more than one tweet to fully explain, but the bonuses have varying vesting dates that paint a fuller picture of how the deal works.
12:30 AM · Jul 7, 2020·TweetDeck
So if we look at the start of the contract Mahomes only gets a signing bonus of $1000000. His base salary in 2020 is only $825,000(part of his old deal).His Base salary is relatively low until 2027 which is the first year he will earn $10,000000.However if you look at the next 2 columns, roster bonus and Work Out bonus this is where most of the money comes from.
The contract announcement talks about guarantee mechanisms. This is actually just another way of saying that on a certain date another part of the deal becomes guaranteed. For example 2023 salary, roster bonus and workout bonus will become fully guaranteed on third league day of 2021 and so on.
The contract also includes performance incentives.As far as these incentives are concerned this is how sportingnews.com explains it
“Mahomes' incentives are simple. Each year starting in 2022, he can earn $1.25 million if the Chiefs reach the Super Bowl and an additional $1.25 million if he is named NFL MVP for a maximum of $2.5 million per year in incentives.Which means in order for Mahomes to the full $502.631 million his 10-year contract extension offers, he needs to lead Kansas City to the Super Bowl as the league MVP in every season for a full decade.”(https://www.sportingnews.com/ca/nfl/news/patrick-mahomes-contract-details-money/2g3luh9viwvy13n84cbe2k564)
So we can see that it would be very difficult for Mahomes to be MVP and win a Super Bowl every year.
This is the largest contract signed by an NFL player in history but there have been other long term contracts signed in the NFL. Donovan Mcnabb signed a 12 year contract with the Philadelphia Eagles in 2002. Despite this Mcnabb was traded to the Washington Football Team in 2010.