When discussing significant financial impacts in the NFL, it's important to distinguish between a player's annual cap hit (the amount counting against the team's salary cap for a given season while they are on the roster) and a dead cap hit (money that remains on a team's salary cap for a player no longer with the team). Based on information regarding the largest dead cap hits in NFL history, Russell Wilson currently holds the record for the largest dead cap hit, amounting to an astonishing $85 million.
Understanding NFL Dead Cap Hits
A dead cap hit occurs when a team releases, trades, or a player retires, but there is still guaranteed money from their contract that must be accounted for against the salary cap. This money, usually from signing bonuses or restructured contracts, accelerates onto the current year's salary cap, creating a financial burden even after the player's departure. These figures represent the most substantial financial penalties teams have incurred from player transactions.
The Largest Dead Cap Hits in NFL History
The following table highlights the players who have generated the biggest dead cap hits in NFL history, illustrating the financial ramifications of significant player movements and contract restructures:
| Rank | Player | Dead Money (Approx.) | Team (When Incurred) | Context |
|---|---|---|---|---|
| 1 | Russell Wilson | $85 million | Denver Broncos | Traded from Broncos to Steelers; contract guaranteed money accelerated. |
| 2 | Matt Ryan | $40.53 million | Atlanta Falcons | Traded from Falcons to Colts. |
| 3 | Aaron Rodgers | $40.313 million | Green Bay Packers | Traded from Packers to Jets. |
| 4 | Carson Wentz | $33.8 million | Philadelphia Eagles | Traded from Eagles to Colts. |
| 5 | Stefon Diggs | $31 million | Buffalo Bills | Traded from Bills to Texans. |
| 6 | Russell Wilson | (additional hit) | Seattle Seahawks | From an earlier contract with the Seahawks. |
| 7 | Julio Jones | (not specified) | Atlanta Falcons | Traded from Falcons to Titans. |
| 8 | DeAndre Hopkins | (not specified) | Arizona Cardinals | Released by Cardinals. |
Note: The exact amounts for entries beyond the top five were not fully specified in the provided information, hence 'not specified'.
Why Do These Large Dead Cap Hits Occur?
Large dead cap hits typically stem from several factors:
- Guaranteed Money: A significant portion of NFL contracts, especially for star players, is guaranteed. This includes signing bonuses, roster bonuses, and base salary guarantees.
- Contract Restructures: Teams often restructure contracts to free up immediate cap space. This involves converting base salary into a signing bonus, which is then prorated over the life of the contract. If the player leaves before the contract ends, the remaining prorated bonus money immediately hits the cap as dead money.
- Trades or Releases: When a player with significant guaranteed money remaining on their contract is traded or released, any unamortized signing bonus or other guaranteed money becomes dead cap.
The $85 million dead cap hit for Russell Wilson with the Denver Broncos after his trade to the Pittsburgh Steelers stands as the most substantial example of this financial accounting in NFL history. It highlights the immense financial commitments teams make to high-profile players and the significant cost of moving on from those contracts prematurely.
