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Dead money is a salary cap charge for a player who is no longer on a team’s roster. It exists because of how salary cap accounting rules operate.
Signing bonuses, option bonuses and certain roster bonuses are prorated or spread out evenly over the life of a contract for a maximum of five years. When a player is released, traded or retires, the remaining proration of these salary components immediately accelerate onto his team’s current salary cap.
There are two major exceptions to this general rule of bonus proration accelerating. Only the current year’s proration counts toward the cap with players released, traded or retiring after June 1. The bonus proration in future contract years is delayed until the following league year, which typically begins in early to mid-March.
A team can also release two players each league year prior to June 2 (known as a post-June 1 designation) that will be treated under the salary cap as if released after June 1. With a post-June 1 designation, a team is required to carry the player’s full cap number until June 2 even though he is no longer part of the roster. The player’s salary comes off the books at that time unless it is guaranteed.
This means dead money is typically a sunk cost where money isn’t owed to a player. A payment is associated with dead money when there are salary guarantees at the time of release or departure comes after the player has already begun receiving a portion of his compensation in that particular league year.
Teams have become more comfortable with big amounts of dead money. The number of dead money charges in excess of $20 million has increased from three in 2022 to eight this year. Here’s a look at the eight players responsible for the 2024 dead money over $20 million.
It became apparent pretty quickly that Sean Payton and Russell Wilson were like oil and water after Payton was hired to coach the Broncos last…
Source link : https://www.cbssports.com/nfl/news/agents-take-biggest-individual-dead-money-charges-in-2024-including-broncos-big-hit-from-russell-wilson/
Author : Joel Corry
Publish date : 2024-12-04 15:54:00
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