Contract Negotiation NFL Players

Mahomes Signs Record-Breaking $503 Million Contract Extension

“SHOW ME THE MONEY!” Leigh Steinberg must be one happy agent after helping his client Patrick Mahomes ink the largest contract in NFL history. Steinberg, the President of Steinberg Sports & Entertainment, who is often credited as the real-life inspiration for Tom Cruise’s character in the movie Jerry Maguire, sure showed Mahomes the money. Mahomes is also co-repped by the President and COO of Steinberg Sports & Entertainment, Chris Cabott.

The defending Super Bowl MVP has agreed to a 10-year, $450,000,000 contract extension with the Kansas City Chiefs that will tie him to the team through the 2031 season. The extension will not kick in until 2022. According to Adam Schefter, the 10-year deal has $25 million in incentives. The contract includes a $1.25 million incentive for winning the AFC Championship game and a $1.25 million incentive for winning NFL MVP. Mahomes still has two years and $27.6 million left on his existing rookie deal – $2.8 million for 2020 and $24.8 million for 2021.

In total, over the next 12 seasons Mahomes can earn up to $502.6 million ($450 million in new money + $27.6 million in old money + $25 million in incentives).

The extension includes $63 million guaranteed at signing and a $141.48 million injury guarantee by March 2022, as well as a no-trade clause.

The new deal includes a $10 million signing bonus and has large roster bonuses on a rolling guaranteed basis in future years, which includes a massive $49.4 million bonus due in 2026. The rolling guarantee goes into effect the third day of every league year, totaling $477,000,000 in guarantee mechanisms. Mahomes can opt out of the contract if the guarantee mechanisms aren’t exercised.

NFL Network’s Tom Pelissero broke down the yearly cash flow below:

Not only is Mahomes new deal the largest in NFL history, it is the largest in North American sports history, surpassing Major League Baseball’s Mike Trout’s $426,500,000 million deal. Trout’s deal was for 12 years and is fully guaranteed whereas Mahomes gets $141 fully guaranteed and can earn up to $503 million over the next 12 years.

For comparison, Damian Lillard is owed the most guaranteed money for an NBA player as he is locked into a contract with the Portland Trail Blazers for $257,429,273 through 2025. Lillard’s final year of his contract includes a player-option for $54,250,000. Mahomes is set to make $59.95 million in cash and cap in 2027.

As the new face of the NFL, Mahomes also continues to rake in endorsement money. Mahomes has deals with Oakley, State Farm, Adidas, Head & Shoulders, and other brands.

Steinberg and Cabott also represents Miami Dolphins quarterback Tua Tagovailoa, Denver Broncos WR Jerry Jeudy, and Green Bay Packers running back Aaron Jones.

By Josh Goldberg

Josh is a recent graduate of Florida International University's College of Law. He works at a law firm with the Franchise Law, Innovation & Technology, and Sports & Entertainment Law groups. He is the founder of Light Social Digital Media & Marketing - a content creation and branding agency for athletes.

Email: [email protected] | Twitter/Instagram: @IAmJoshGoldberg