Last season was a letdown for the Chiefs, but the offseason has been worse. The team’s salary cap is a major concern. The release of Mike Danna may only be the beginning, as the team’s salary cap crunch now puts two prominent starters in a precarious position. Recently, the team GM addressed the matter.

“I think with guys like Jawaan (Taylor) and Drue Tranquill, these guys started for us, and they’ve played a lot of football for us,” Brett Veach said at the NFL Combine. “Our cap situation, I think we have sixty million in convertible contracts, too, so we have many different ways to attack this. I think that’s the one thing that we’ve been good at, and we don’t do a lot of money pushed down in the future years, and I think we run a pretty tight ship there. So this gives us flexibility to do different things.” 

In 2025, the Chiefs’ offensive line surrendered 38 sacks, a figure that resulted in their 6-11 finish. Jawaan Taylor, despite his struggles with penalties, remains a cornerstone of the pass protection unit, logging over 900 snaps last season. Cutting him would trigger a massive $14.7 million dead cap hit.

Veach’s remarks suggest why the idea of a double cut may not be on the cards, with both players being starters. By stressing that the Chiefs avoid pushing money into future years, he effectively framed financial discipline as a priority.

With Patrick Mahomes’ recent restructure already representing a rare instance of money being shifted forward, Veach’s emphasis on “running a tight ship” gives added weight to the possibility that veterans like Jawaan Taylor and Drue Tranquill could also have their contracts restructured to solve cap issues.

The admission came after the Kansas City Chiefs entered the 2026 offseason in a difficult financial spot under the NFL salary cap. Before making any changes, the team was more than $50 million (roughly $57–60 million) over the cap limit they must meet before the new league year begins on March 11.

A big reason the cap was so tight is the massive salaries on the Chiefs’ roster, especially for Patrick Mahomes. His 2026 cap number was originally set at about $78.2 million, which is one of the highest in the league.

Finding a fix for the situation, the Chiefs restructured Mahomes’ contract. They converted more than $54 million of his base salary into a signing bonus, which spreads that money out over the rest of his contract instead of counting it all in 2026. That change lowered his 2026 cap hit to around $34.65 million, leading to his cap charges being higher in future years (in 2027) unless his deal is extended again.

The team currently has over 45% of its total cap tied up in just four players (Mahomes, Chris Jones, Joe Thuney, and Travis Kelce). This creates a big issue for players like Mike Danna and the team can no longer afford it. To fill out a 53-man roster, Veach will likely have to rely on a rookie influx, meaning the 2026 draft will be the most critical of his tenure.

Furthermore, the GM also admitted that the $60 million worth of convertible contracts could be a fix that the team could rely upon.

This refers to deals on the team that can be restructured or adjusted in similar ways, for example, by converting salary into bonuses to create cap space without releasing players. This gives Kansas City flexibility to manage money rather than simply cutting starter-level players.

However, with the future expenditure being a priority, a decision could even be made to save on cap space and protect finances in the long run. The comment from Veach turns out to be even more surprising as it comes following the defensive end Mike Danna’s release.

Chiefs announce Mike Danna’s release amid limited cap space troubles

Mike Danna spent his entire NFL career with the Chiefs, but now he’ll be looking for a new home. The franchise has been making financial adjustments after missing the playoffs in 2025. With the team more than $50 million over the salary cap earlier this offseason, tough roster decisions became necessary.

The Chiefs announced the decision on social media with a short “Thank you” message. By cutting Danna, Kansas City saves $8.94 million in cap space. The team will absorb a relatively small $2.17 million dead money charge, since none of his 2026 base salary was guaranteed.

Danna was originally drafted by Kansas City in the fifth round (177th overall) of the 2020 NFL Draft out of Michigan.

He played a key role during the team’s Super Bowl runs alongside stars like Patrick Mahomes and Travis Kelce by helping them win championships during the 2022 and 2023 seasons.

Danna had his best year in 2023, a season that saw him record 6.5 sacks and 47 quarterback pressures in 16 starts. That performance earned him a three-year, $24 million contract extension.

However, his production declined in 2025. He played 15 games but managed only eight solo tackles and a sack, a sharp drop from previous seasons. Despite the down year, Danna is expected to draw interest in free agency.

Reports suggest teams like the San Francisco 49ers, Green Bay Packers, and Detroit Lions could be potential landing spots amid their needs for a reliable edge rusher.