The Miami Dolphins are facing a significant financial challenge as discussions intensify about possibly releasing quarterback Tua Tagovailoa. After new general manager Jon-Eric Sullivan freed more than $50 million in cap space this week by parting ways with players like Bradley Chubb and Tyreek Hill, the team is exploring further roster changes that could include moving on from their franchise quarterback. Tagovailoa, however, carries a large guaranteed salary, making any move complicated and impactful for the Dolphins’ cap space heading into 2026.
Challenges Surrounding Tua Tagovailoa’s Contract
Tagovailoa is coming off his poorest season and has a guaranteed salary totaling $54 million for 2026, a figure that deters potential trade partners unless the Dolphins are willing to cover part of his salary. Speculation suggests the Dolphins may consider a more drastic approach, such as releasing him outright rather than trading. This option leads to a substantial dead cap hit due to the contract’s structure, raising questions about how the team will manage the financial consequences.
Options for Managing the Cap Hit
According to Mike Florio of Pro Football Talk, the Dolphins have two primary choices if they proceed with releasing Tagovailoa: absorb the entire $99 million cap hit in 2026 or spread the charge over two seasons. Florio reports that insiders within the league believe Miami is leaning toward taking the full cap charge in 2026, despite its historic size and immediate impact on their salary cap flexibility.
“Some in league circles think the Dolphins may do just that. Eat the full $99.2 million now. With the cap for 2026 projected to fall between $301.2 million and $305.7 million for the coming year, anywhere from 32.4 percent to 32.9 percent of the team’s total cap space would be allocated to Tagovailoa.” – Mike Florio, Pro Football Talk
Choosing to absorb this massive dead money would set a new NFL record for the largest cap charge associated with a single player. Previously, the Denver Broncos held this record, absorbing a $53 million dead cap hit to release quarterback Russell Wilson. The Dolphins potentially doubling that figure signals an unprecedented financial decision in the league.
Context and Team Roster Rebuilding Efforts
The Dolphins have been actively managing their roster in recent weeks, moving away from their previous coaching staff, including former head coach Mike McDaniel. The team’s aggressive moves indicate a willingness to overhaul their lineup in pursuit of future success, even if it requires absorbing substantial financial burdens in the short term. The release of established stars and the possible departure of top players like Minkah Fitzpatrick illustrate how committed Miami is to this approach.
Implications of a Major Cap Hit Moving Forward
If Miami proceeds with releasing Tagovailoa and taking on the record $99 million dead cap hit, the move could severely limit their salary cap flexibility in 2026, impacting their ability to sign key players or pursue free agents. This decision reflects the team’s prioritization of roster restructuring over immediate financial concerns, but it also raises uncertainty around their quarterback situation and future competitiveness. The Dolphins will need to balance these challenges carefully as they continue to shape their roster in the coming years.
