Earlier in 2024, the Miami Dolphins signed quarterback Tua Tagovailoa to a four-year, $212.4 million deal to make him one of many highest-paid quarterbacks within the NFL. In 2023, he performed all the season with out lacking a begin, and totally wholesome, the Dolphins opted to increase him.
On Thursday evening in opposition to the Buffalo Payments, Tagovailoa suffered one other concussion, which has prompted a number of of us across the NFL sphere to recommend he ought to retire, although early studies are that he’s not planning to take action. Clearly it goes with out saying that we care far more about his present and future well being than the pocketbooks of an NFL proprietor and the wage cap of an NFL group. With that mentioned, the monetary impacts of this are nuanced and can little doubt play an element in how the subsequent 18 months transfer ahead with the QB and his contract.
As a part of his contract, Tagovailoa acquired $167 million “assured”, in response to media studies, however let’s dig into what meaning a bit of bit.
There are two forms of ensures in NFL contracts; totally assured and assured for harm. In these media studies, the 2 are often grouped collectively as a result of it seems higher for the participant’s agent who’s leaking the information. Totally assured cash goes to be paid regardless of the participant’s efficiency and is barely voidable in instances the place the contract is violated by a suspension for violating the league’s substance abuse or private conducts insurance policies. (It’s additionally not paid if a participant retires.) Cash that’s assured for harm is barely paid out if a participant is unable to be medically cleared and their profession is over.
Tagovailoa’s totally assured quantity is $93.17 million (not $167 million), and contains his 2024 signing bonus, 2024 wage, 2025 roster bonus, and 2025 wage. Of that, the $42 million signing bonus has already been paid and his wage is $1.125 million for the season. That leaves the remaining totally assured cash that has but to be paid at round $50 million.
On the flip aspect, roughly $124 million in injury-guaranteed cash continues to be but to be paid.
If and when Tagovailoa makes it by way of the NFL’s concussion protocol (as he’s reportedly planning on doing), he’ll not be thought-about “injured” for the needs of the harm assure. Due to this fact, if he does retire, he would wish to forego all of his future cash, assured or not. Lingering results from accidents don’t rise to the extent of the harm assure so long as he’s cleared to play. It is just paid out in a “should retire” scenario and never a “ought to retire” scenario, as Over the Cap put it.
If for some motive Tagovailoa is just not medically cleared, Miami must pay him the $124 million steadiness on the harm ensures. They might be capable to break up these cap hits over the 2025 and 2026 seasons to be extra manageable, and it’s seemingly he would sit on the PUP checklist for that point in an effort to handle the cap ramifications. A few of that cap hit could be offset by the group’s insurance coverage, in response to Over the Cap.
There may be one other looming contractual factor to contemplate, as effectively. In the course of March 2025, his 2026 compensation of $54 million transitions from harm assure to full assure. That represents at the very least one looming deadline that might pressure the Dolphins’ hand by way of their medium-term dedication to the QB.
If he’s cleared and Miami releases him earlier than that compensation turns into totally assured, they are going to solely owe him the remaining $50 million they owe him now and never be compelled to pay him the additional $54 million.
If a medically cleared Tagovailoa walks away now, he could have made $73 million in his NFL profession and he wouldn’t be paid any more cash into the long run.
