If you are relatively new to the NFL or even if you are a long-time fan of the game but would rather concentrate on what happens on the field rather than the front office, you will have heard of the phrase dead cap money but not be entirely sure what it means.
I am sure you are aware of the furore around Russell Wilson, and the amount of money the Denver Broncos had to eat just go remove him from their roster. Wilson was informed by the Broncos that he would be released as soon as the new league year begins, putting an exclamation mark on a terrible two years with the franchise despite the hype when he joined.
The Broncos gave up an awful lot to acquire Wilson as they firmly believed he would be their franchise quarterback and take them to a Super Bowl. They sent Shelby Harris, Drew Lock, Noah Fant, a 2022 first-round pick, a 2023 first-round pick, a second-round pick in 2022 and 2023 and a 2022 fourth. Once completed, Wilson then signed a five-year, $245 million contract extension with $165 million guaranteed.
So, when Denver decided to cut him loose early, they knew Wilson would still be owed a lot of money and that it would be on their books for years. That dead cap money is different to all of the other money spent on the Broncos roster.
Tua Injury Highlights Risks
In last night’s Thursday Night Football game, the Dolphins faced the divisional rival Bills at Hard Rock Stadium. The Dolphins lost in a blowout, but what was worse was losing QB Tua Tagovailoa to another concussion. It is the third concussion he has suffered during his career and now there are legitimate question marks on if he should ever return to the field.
Of course, the most important aspect here is the human element. We all want Tua to be OK and if playing in the NFL again was to risk his health long term, he should retire. But then there is the team element as well and the dead cap money.
In the summer, Tua signed a new four-year contract with $93.171 million of his total earnings guaranteed. If he does retire, the Dolphins will have to swallow that up which will have an impact on their salary cap next year and beyond as they look to rebuild. This injury highlights why dead cap and spreading the wealth around evenly on a roster is so important nowadays to have success.
Dead Cap Money in the NFL
The salary cap always gets a lot of attention when free agency and the draft rolls around. The dead cap element of the overall salary cap is vital.
Dead cap is the charge to the salary cap that a franchise will continue to pay for a player who has been cut. Obviously, every team will aim to keep that number as low as possible but it can get very high, it all depends on the value of the cut players’ contracts and the amount of players cut.
Dead cap money meaning
The dead cap money is whatever remaining amount that is left over in guarantees on a cut player’s contract. This also includes any relevant bonuses and salary he would be due later.
We used the example of Wilson above as it is the most recent example of a huge dead cap hit. Wilson had another five years to run on his contract, and had received $20 million of his $50 million signing bonus. When you add up other bonuses he received from Denver, he earned $39 million from their franchise over his two years there.
However, there was still $30 million from his signing bonus and $38 million in roster bonuses remaining on his deal when he left. When everything was added up, including base salary, the Broncos were left with a total dead cap hit for Wilson worth $85 million.
NFL Salary Cap
The NFL has a set salary cap every year which every team must strictly adhere to. The figure for the 2024 season has been set as $255.4 million, which is a huge jump from the $224.8 million figure last year. That is good news for teams like the Broncos as it gives them extra wiggle room to sort out the Wilson contract, which remains like a noose around their necks.
Super Bowl LIX Odds
| Team | Odds |
|---|---|
| San Francisco 49ers | +550 |
| Kansas City Chiefs | +600 |
| Baltimore Ravens | +950 |
| Detroit Lions | +1,300 |
| Buffalo Bills | +1,300 |
