How a 24-Year-Old Signed for Half a Billion Dollars in Just 3 Years
By: Hisham Iqbal
Tags: Marketing, Football, Patrick Mahomes, Success Story, Sports

How a 24-Year-Old Signed for Half a Billion Dollars in Just 3 Years

Patrick Mahomes just signed the biggest contract in sports history using a unique set of on and off the field strategies.

AP Photo/Charlie Reidel

On December 31st, 2017, Patrick Mahomes started his first National Football League game as the Quarterback of the Kansas City Chiefs. On July 6th, 2020, Patrick Mahomes signed the largest contract in sports history, worth up to $503 million over a ten-year span. All it took was 918 days for Patrick Mahomes to go from benchwarmer to making over a $1 million a week. To put the sheer magnitude of Mahomes’ contract in perspective, the next highest-paid contract in NFL history was Matt Ryan’s worth $150 million over 5 years. Mahomes more than tripled that contract and did it in 7 fewer years.

Mahomes’ contract is important to discuss because of the process it took for him to reach this stage. As a 24-year-old, Patrick Mahomes has set the standard for proving your worth to your employers and beating the odds when it counts. The value of his contract is indicative of the value the Kansas City Chiefs hold in Mahomes, knowing that with him you get a drive and skillset that is incontrovertible. His story is one that is 1 in a million, or rather 503 million, but can be applied in unique ways to each of our lives.

Quick Learner

Patrick Mahomes was one of the highest-rated Quarterbacks going into the 2017 NFL Draft but fell to the 10th overall pick. Upon joining Kansas City, he became a backup for then KC Starter Alex Smith. While being a backup, Patrick became a sponge on and off the field. Every ounce of insight that was dropped, advice that was given, or tidbit that was shared he took note of. He studied the game inside and out knowing that one day his chance would come.

Being a highly rated recruit out of college, many Quarterbacks expect to be given the driver’s seat immediately. After all, these Quarterbacks are used to commanding a football team in front of hundreds of thousands of fans. Instead, Patrick Mahomes had to prove to his team that he deserved the Quarterback position and he did this by learning the game and applying it to his own talent. This paid dividends as, after the Kansas City Chiefs secured their playoff position for the 2017 season, Mahomes started his first game. With the team knowing that a win or loss would not impact their playoff standing, they let Mahomes showcase what he learned and boy, did he deliver.

Talent

There have been hundreds of thousands of athletes over the course of the athletic timeline but there is a reason that Mahomes is the athlete who received the wealthiest contract in sports history. As obvious as it may seem, his talent is what separates him from the field. Mahomes has mastered the Quarterback position, the captain of the football team, in under 3 years. He has his own signature ‘side-arm’ throw. To put it simply, Patrick Mahomes is the best player in the National Football League, point-blank. He has the talent to undermine an opponent to their bare bones, leaving coaches questioning how to possibly prepare for Mahomes week to week. In just under 3 years, Mahomes accolades speak for himself.

Superbowl LIV Champion

Superbowl LIV MVP

2018 NFL MVP

2x Pro Bowl

First-Team All-Pro

Tied for 2nd most Touchdowns in 1 season

First QB with 3 10-point comebacks in 1 postseason

Has not lost a single game by more than 7 points

Marketability

At the end of the day, the NFL is an entertainment business. Every NFL player is a salesman for the product that the NFL produces and the more marketable an athlete is, the better it serves the league and the team owner. From television to jerseys to sponsorships, the league has commoditized every aspect of the game. With this in mind, Patrick Mahomes has mastered the art of marketability early on in his career.

Success

As described above, Mahomes has experienced an unprecedented level of success and rise over his brief career thus far. Fans from all over the world are paying attention to the Kansas City Chiefs on a weekly basis, increasing their fandom after every win. Mahomes' addition to the starting lineup has led to a direct increase in ticket sales and viewership of the Chiefs and the NFL as a whole. Patrick Mahomes has catapulted himself as one of the faces of American sports and the NFL has no option but to run with it, especially as the eras of Peyton Manning and Tom Brady are winding down. It was almost a no brainer for the Chiefs to reinvest what Mahomes has brought to the club back into him to keep Mahomes’ ability to attract viewers in Kansas City.

Likeability

Mahomes is easy to relate to, something that is hard to come by in this era of social media and sponsorships. As a recent college graduate who still actively keeps up with his university, Mahomes connects with the community and engages with fans on his large social media following. He is soft-spoken during interviews, routinely conveys his love for his family and friends, and continues to do the same things that every 24 years old loves to do, even with his rather large bank account.

Every American, the athlete or not, loves the underdog story. Although Mahomes is a Superbowl winning MVP and may not be seen as an underdog for the rest of his life, he treats himself as one with the world left to prove. This work ethic is one that very few athletes have, especially considering this grind continues the morning after his record-breaking contract.

There are still championships left for Mahomes to pursue.

Fans admire athletes who reinvest in their communities and Mahomes is no exception.

Patrick Mahomes describes using portions of his salary for community engagement.

The fact that the topic that Patrick Mahomes discusses after his contract extension is reinvesting in communities shows the value and importance this has on him. With the combination of success and genuine likeability, even opposing team’s fans (such as myself) admire the progression of Mahomes, directly translating to the marketability of Mahomes. In the list of NFL Player Sales for products and merchandise, Patrick Mahomes ranks first, above the likes of Tom Brady, JJ Watt, and Odell Beckham Jr., three of the most marketable athletes over the last few years.

Indispensability

This is arguably the most important factor in how Patrick Mahomes found himself signing a $503 million contract. Mahomes is a 24-year-old Quarterback, with his prime period as an NFL player still burgeoning. The Kansas City Chiefs realize this. They know the value Mahomes can bring to every other NFL team because they see the same value he brought to their franchise. The Quarterback position is one that can change a team for years and the Chiefs are sitting on a gold mine with Mahomes. More than losing Patrick Mahomes, the Chiefs could not risk having another team risk gain him. The team has secured that Mahomes will be on Chiefs roster until 2031, meaning that Mahomes will not be on any other NFL roster until 2031. The best player in the league is not playing against the Chiefs defense but rather playing for the Chiefs offense every Sunday and this is a cost Kansas City would pursue at any cost.

Moving Forward

The Kansas City Chiefs have their star under center for the next 12 years (the start of Mahomes’ 10-year contract will start at the end of his current contract). The Chiefs must be smart moving forward with how they attract and sustain talent, knowing that the NFL is all a money game. The salary cap for every NFL team is $198,200,000, and the Chiefs have spent over 20% of that full team roster on one player.

Patrick Mahomes’ contract valuing the same as 21 other players

This may be a testament to the faith that the Chiefs organization has in Mahomes leading any group of players to the Super Bowl or it may be a move to keep Mahomes from joining any roster but the Chiefs. Regardless, the future is in store for this organization and Mahomes who has proven so much but shows no signs of stopping.