How the Chiefs can find more cap space for 2024

Kansas City has better offseason finances than in recent years, but general manager Brett Veach has some work to do to deliver a third consecutive title.

For the first time in years, the Kansas City Chiefs will begin the offseason comfortably under the league’s salary cap.

Using the widely predicted $242.5 million 2024 spending limit, Arrowhead Pride estimates that the Chiefs currently are $15.5 million under the salary cap. A clearer picture will emerge closer to the start of the league year on March 13.

While Kansas City will not need to make any moves to be compliant, their current cap space will not get them very far in setting up a roster that can pull off the first “three-peat” Super Bowl run in league history. The Chiefs have 36 pending free agents — including a franchise legend in defensive tackle Chris Jones. Jones may receive a league-topping contract, either in Kansas City or elsewhere.

The Chiefs would also need to open up more cap room to place the franchise tag on cornerback L’Jarius Sneed — or to even consider upgrading the wide receiver room or pursuing a veteran option at left tackle.

Fortunately, Chiefs general manager Brett Veach has several viable paths to create more cap room. For our purposes, restructuring possibilities assume a veteran minimum salary and signing bonuses spread over the existing seasons on current contracts. 2024’s veteran minimum salary will be $1.125 million — with an increase to $1.21 million for players with seven or more accrued NFL seasons.

All salary information is taken from Spotrac.

The cut candidates

By now, most of the Chiefs’ internet general managers are aware that releasing wide receiver Marquez Valdes-Scantling will open $12 million in cap space. While the wideout redeemed himself (to an extent) with clutch playoff performances, there is no way the Chiefs can justify bringing him back at his current scheduled salary. Releasing him would leave a $2 million dead money charge.

However, past experiences with wide receiver Sammy Watkins and defensive end Frank Clark should teach us not to rule out Valdes-Scantling returning. With career worsts in receptions (21), receiving yards (315) and touchdowns (1), a path exists for the receiver to accept a pay cut with the opportunity to earn most of it back via incentives. While Veach has made shrewd use of not likely to be earned incentives in navigating the salary cap, the presence of Justin Watson — a similar wide receiver signed for a reasonable $1.5 million salary — may increase the likelihood of moving on from Valdes-Scantling.

Photo by Perry Knotts/Getty Images

The only other two players who would create substantial cap savings if cut are safety Justin Reid and defensive end Charles Omenihu. Releasing Reid would open $10.8 million while leaving a $3.5 million dead money charge. Given defensive coordinator Steve Spagnuolo’s importance on having a veteran safety for communication purposes, it would be surprising if the Chiefs cut Reid. In 2021, the team allowed Tyrann Mathieu to finish his contract despite having a much larger cap number than Reid’s. The presence of young safeties Bryan Cook and Charmarri Conner may keep the Chiefs from offering Reid an extension, but they have not shown enough to justify moving on from the veteran.

Omenihu may miss much of the 2024 season while recovering from a recent ACL tear, but he could be a valuable player for next season’s stretch run. Cutting the pass rusher would create $7.2 million in cap room while leaving behind $3.8 million in dead money — and likely tarnishing Kansas City’s reputation with prospective free agents.

Restructures

Most cap room created will likely come from contract restructures. Guard Joe Thuney has been Veach’s official bank the past two offseasons with a pair of adjustments to the monster contract he signed in 2021. The Chiefs have another opportunity to restructure Thuney, which could create $7.4 million in cap room. Such a move would, however, leave a $34 million cap number in 2025, the last season of his contract.

The offseason’s first restructure may be tackle Jawaan Taylor.

Taylor was last season’s biggest free agency signing — but may have played himself out of the team’s future plans by becoming a magnet for penalties. Because his $19.5 million 2024 salary is guaranteed, there is no long-term harm in a traditional restructure. The Chiefs will pay him the money regardless, and the question is whether the money will be fully charged to this season’s cap or spread over his remaining seasons in Kansas City. Expect the Chiefs to create up to $12.6 million by converting most of his base salary into a signing bonus.

Early last season, the Chiefs agreed to a complicated restructure with quarterback Patrick Mahomes. An advantage of the new format is that the team has until May 5 to determine how much of the passer’s roster bonus to restructure into a new signing bonus. Previously, a decision was required at the offseason’s start — before free agency and the draft. While the Chiefs can create up to $35.6 million by restructuring Mahomes’ contract, they likely will wait and let the offseason determine how much of the money to push down the line.

Photo by Michael Owens/Getty Images

Tight end Travis Kelce’s compensation may be a wild card. If both parties quietly anticipate the 2024 season to be Kelce’s last, an agreement that moves some of his scheduled 2025 money forward into a new signing bonus with most of this season’s salary — giving him a raise while lowering his current $15.5 million cap number — would not be surprising. No one will complain about dead money for Kelce during his first year of retirement (whenever that may be).

The bottom line

With so many ways to maneuver money — and currently a very clean 2025 financial picture — the Chiefs can fit almost any offseason scenario under the salary cap without horrifically mortgaging future flexibility.

As always, the salary cap should not be confused with the team budget, and we have no way of knowing what internal spending parameters Veach may have to work around.