Yahoo Sports Chiefs add insurance policy to Patrick Mahomes' record extension, per report
The Chiefs made the biggest investment in a player in NFL history. It’s understandable they’d want to get some insurance.
An insurance policy has been created for Mahomes’ record 10-year, $477 million contract extension, according to ESPN’s Field Yates.
The policy will reportedly protect the Chiefs in the event an injury prevents Mahomes from being able to play, and will have salary cap implications in the form of a corresponding credit.
As ESPN notes, insurance policies are not very common in football contracts, but the sheer size of Mahomes’ contract makes the move a no-brainer. Contract insurance is seen more often in MLB, and is mandatory for the five highest salaries on all NBA teams.
The insurance policy adds yet another factor into what might be the most complicated deal in sports. The deal is a tangled mess of roster bonuses, injury guarantees, incentives and vesting dates, but ultimately add up to as much as $503 million for Mahomes over 12 years. The deal functionally guarantees Mahomes hundreds of millions of dollars, and the Chiefs are clearly happy to pay it for the quarterback that led them to a championship at Super Bowl LIV.
Mahomes begins his new deal on Thursday with the Chiefs’ season opener against the Houston Texans.
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