How the Dolphins can clear out cap space to fill needs: Important things to know
A Dolphins team that began this rebuild — four years ago — with a 7-9 record, a treasure trove of draft picks and seemingly unlimited cap space now has exited the rebuild with a playoff appearance and a much better roster but also with a dearth of draft picks and at the moment, no cap space.
After ranking among the league leaders in cap space in recent offseasons, the Dolphins stand $16.2 million over the 2023 salary cap with 44 players under contract. The Dolphins need close to $5 million in cap space to sign five April 2023 draft picks, including one second-round pick, two thirds, a sixth and a seventh.
But general manager Chris Grier didn’t seem worried Monday, noting the team will have “flexibility” to do what it wants to achieve this offseason, before the March 13 start of free agency.
Here’s a look at how the Dolphins can create cap space to address several needs, with all numbers courtesy of overthecap.com:
▪ Restructure the deals of at least four among Tyreek Hill, Bradley Chubb, Terron Armstead, Xavien Howard and Emmanuel Ogbah.
That can be done by changing base salary into prorated bonuses, which are evenly distributed through the length of a contract. But it’s also pushing back financial headaches to another day.
Some of the Dolphins’ 2023 cap numbers are huge: $31.2 million for Hill, $22.2 million for Chubb, $21.1 million for Armstead, $17.2 million for Ogbah.
With Hill, $11 million in cap space can be saved by converting most of his 2023 salary into a bonus.
Doing the same would save $6 million in cap space with Armstead, $9 million with Ogbah and nearly $15 million with Chubb.
So those four simple steps could clear out more than $41 million in cap space, giving the Dolphins about $25 million in space.
A Connor Williams extension and restructure could shave a few million off his $8.4 million cap hit.
Of the five aforementioned players, all assuredly will return except possibly Ogbah, who seems more likely to return than not.
Moving on from Ogbah would be a realistic option only if he’s traded. Keep in mind that Ogbah’s $15 million salary for 2023 is entirely guaranteed, and his $17.2 million 2023 cap number would mushroom to $21 million if he’s cut before June 1 and would stay $17 million if he’s cut after June 1, per overthecap.com.
But if he’s traded before June 1, his Dolphins dead money hit would be only $6 million. If he’s traded after June 1, his Dolphins dead money hit would be only $2 million.
But the Dolphins’ pass rush shortcomings at times this season suggest he’s needed, and Miami likely would have difficulty finding a team willing to trade for a pricey player coming off a one-sack season that ended prematurely because of a triceps injury.
Miami needs Ogbah to recapture his form of 2020 and 2021, when he had 18 combined sacks.
While a third restructure with Howard is possible, moving on from the veteran cornerback is not a realistic option.
Howard has a low base salary ($1.2 million) and a modest cap hit ($10.1 million). His cap number would swell to $33.1 million if he’s cut before June 1 and $9.9 million if he’s cut after June 1. So moving on from Howard does not appear a sensible option.
▪ Cut cornerback Byron Jones, but not until after June 1.
Jones’ recovery from March surgery in the ankle/Achilles area simply stopped progressing in August, according to a league source.
Grier said “Byron did everything he could to try to play” but declined to say whether the team has any interest in keeping him on a restructured contract.
His $13.5 million salary is entirely nonguaranteed in 2023, and the Dolphins assuredly won’t pay him that.
He has a big 2023 cap hit ($18.4 million), and that cap hit drops only to $14.8 million if he’s cut before June 1 but $4.8 million if he’s cut after June 1.
So if the Dolphins want to release him, waiting until June 1 makes the most sense. If the Dolphins cut him with a post-June 1 designation, that cap relief wouldn’t be available until June.
▪ Consider cutting players with low or no dead money cap hits if they’re released.
Tight end Cethan Carter would be the most obvious after he missed all but the opener with a concussion. His $2.3 million salary is nonguaranteed for 2023 and his $2.6 million cap hit would be eliminated if he’s cut.
So restructuring the deals of Hill, Ogbah, Armstead and Chubb and cutting Byron Jones (after June 1) and Carter would leave Miami with more than $40 million in cap space — though the Jones space relief could not be used until June or beyond.
The full cap hit and salary would be eliminated, if released, for only one other player besides Carter: Keion Crossen, who has a $2.9 million nonguaranteed salary for next season and $3.2 million cap hit. But Crossen had value as a core special teams player and backup cornerback.
There are two other Dolphins whose dead cap money hit would be low if cut: tight end Durham Smythe, who is owed $3.2 million nonguaranteed with a $4.2 million cap hit, and fullback Alec Ingold, who is owed $2.7 million nonguaranteed with a $3.8 million cap hit. Their dead money hit would be $750,000 for each if cut.
So the Dolphins could carve out $6.5 million in cap space by cutting Smythe and Ingold. But both are valued by coaches and would need to be replaced, so that seemingly wouldn’t make much sense.
▪ Try to trade receiver Cedrick Wilson Jr.
Keep in mind that $5 million of his $7 million salary next season is already guaranteed. He has an $8 million cap hit in 2023 that would shrink to only $7 million if he’s cut before June 1.
But if he’s traded before June 1, there would be only a $2 million dead money hit for the Dolphins for 2023 but a $6 million cap savings.
His $8 million cap hit in 2023 would drop to $1 million if he’s traded after June 1 but would still be sizable ($6 million in dead money) if he’s cut after June 1.
A trade for a conditional late-round pick seems to make the most sense to free up needed cap space, if Miami can find a taker.
▪ Wait on a contract extension for Tua Tagovailoa, whose 2023 cap hit would rise from $9.6 million to potentially $15 million or more with an extension.
There’s no need to give him an enormous deal before seeing if he can stay healthy in 2023.
▪ See if you can agree on a Christian Wilkins extension that would lower his $10.8 million cap hit next season.
Wilkins has earned an extension, and the team wants to keep him long-term after a 98-tackle season.
▪ Go bargain shopping to replace tight end Mike Gesicki and find cheap running backs, whether that involves re-signing Raheem Mostert and Jeff Wilson Jr. (who both have made a case to return) or finding low-budget alternatives.
The Dolphins need to sign at least two running backs (they have none under contract), at least three inside linebackers (Elandon Roberts, Duke Riley and Sam Eguavoen are free agents), a new, more durable backup quarterback (to replace Teddy Bridgewater), two edge players (Melvin Ingram III and Andrew Van Ginkel are free agents), a No. 3 safety (Eric Rowe is a free agent), two cheap backup receivers (which could be as simple as re-signing Trent Sherfield and River Cracraft), a cheap tight end to replace Gesicki and a cornerback presumably to replace Byron Jones.
There might be no money to upgrade the offensive line, but the Dolphins have Armstead, Williams and Robert Hunt as core starters, and Grier said Liam Eichenberg (left guard) and Austin Jackson (right tackle) will get a chance to retain starting jobs they won last August. Low-money veterans must be signed; that could be as simple as re-signing Brandon Shell and Kendall Lamm.
Miami’s biggest decision: whether to invest significant money on a new inside linebacker, a position which needs to be upgraded, or try to get by again with budget signings. Grier didn’t answer directly when asked if that position needs to be upgraded, noting that the team hasn’t begun a full offseason personnel evaluation.
Keep in mind that cap space goes quickly, and a team needs to save several million to sign a practice squad and give itself a cushion should there be a slew of injuries in camp and preseason.
A couple of other points:
▪ Jason Sanders’ strong finish to the season — he ended the year 26 of 32 on field goals — makes him likely to return.
Keep in mind that $2.5 million of his $3.4 million salary for 2023 is guaranteed. He has a $3.8 million cap hit for 2023, and if he’s cut, the cap hit would be $3.7 million if cut before June 1, or $2.9 million if cut after June 1.
So the Dolphins could take Sanders and another kicker to camp and make a decision in late August. Or they could once again have Sanders be the only kicker in camp, without competition.
▪ While Jerome Baker is likely to be retained after a 100-tackle season, his $12.5 million cap number for 2023 and the Dolphins’ situation at inside linebacker requires a discussion, at least internally.
None of Baker’s $8.4 million salary next season or $10.8 million in 2024 is guaranteed. His $12.8 million cap number in 2023 shrinks to $8.7 million if he’s cut or traded before June 1, and drops to $3.7 million if he’s cut or traded after June 1.
There’s no reason to consider jettisoning him unless a clearly better player is lined up via trade or free agency to replace him.
In late October, Baker restructured his contract (lowering his 2022 cap hit by $2.5 million) to help the Dolphins facilitate the Chubb trade from a cap perspective.
Because of that — and because he’s still a productive, reliable and durable player and respected leader — he has a good chance of surviving this offseason.
▪ Cutting players from the 2020, 2021 and 2022 draft classes who haven’t yet worked out essentially accomplishes nothing significant with regard to the cap; any cap savings would be negligible.
But if Miami could find a trade partner for cornerback Noah Igbinoghene, his Dolphins 2023 cap hit would drop from $3.6 million to $1.4 million.
▪ The Dolphins have only $1 million in dead money on their 2023 cap, including $600,000 from dealing Chase Edmonds to Denver in the Chubb trade.
This story was originally published January 17, 2023 at 2:46 PM.
