The Miami Dolphins are diving headfirst into uncharted financial waters in 2026. With the NFL salary cap surpassing $300 million for the first time, the Dolphins are making headlines by allocating more than half of that to players who won't even grace their roster this season.
Since March 11, when the new league year kicked off, Miami's fresh-faced general manager, Jon-Eric Sullivan, has laid bare his blueprint for the season: a complete overhaul. It's a bold move, signaling a desire to rebuild from the ground up.
The shift started with the surprising February release of Tyreek Hill, resulting in a hefty $28.2 million dead cap hit. Shortly after, Tua Tagovailoa was also shown the door, contributing an eye-popping $99.2 million to the dead cap total. Even Jaylen Waddle, once considered a staple, was traded to the Broncos, adding another $26.3 million in dead cap.
These moves have propelled the Dolphins to an NFL-record $182.29 million in dead cap space for 2026. This figure not only sets a new league record but also accounts for 60.5% of their cap space, an unprecedented percentage.
For context, the previous high was the Raiders' 47.1% back in 2013. The Dolphins' financial maneuvering is truly one for the record books.
The dead cap hit from Tua Tagovailoa stands as the largest in NFL history. However, Miami will spread this burden over two years, absorbing $55.4 million in 2026 and $43.8 million in 2027, thanks to his post-June 1 designation.
To grasp the enormity of Miami's $182.29 million dead cap, consider this: it's more than the entire salary cap was just eight years ago, in 2018. No team has ever crossed the $130 million threshold in dead cap space, putting the Dolphins in a league of their own. Even the 2024 Broncos, who dealt with a significant $53 million hit from Russell Wilson's contract, only faced $89 million in dead cap.
So, how did the Dolphins reach this staggering figure? Sixteen players contribute to this financial strain, with seven of them accounting for over $10 million each. Notably, Jalen Ramsey and Terron Armstead, who last played for Miami in 2024, are still impacting the books.
The Dolphins parted ways with former GM Chris Grier in October, a move that reflects the consequences of unsustainable contracts. Sullivan, in his brief tenure, is attempting to navigate these choppy waters, but with $180 million tied up in dead cap, options are limited. This leaves Miami with roughly $120 million to build their 2026 roster, a challenging scenario for any team.
Despite these constraints, the Dolphins managed to secure quarterback Malik Willis in free agency, inking him to a three-year, $67.5 million deal. Yet, with such financial limitations, the 2026 season appears to be more about laying groundwork than competing for titles. It's no wonder the Dolphins are leading the conversation around potentially positioning themselves for a future with Arch Manning.