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 your entire season with out lacking a begin, and totally wholesome, the Dolphins opted to increase him.
On Thursday night time towards 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 stories 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 a component 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 stories, however let’s dig into what which means a bit bit.
There are two varieties of ensures in NFL contracts; totally assured and assured for damage. In these media stories, the 2 are often grouped collectively as a result of it seems higher for the participant’s agent who’s leaking the data. Absolutely assured cash goes to be paid irrespective of the participant’s efficiency and is just 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 damage is just 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 consists of 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 remains 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 now not be thought of “injured” for the needs of the damage 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 damage assure so long as he’s cleared to play. It’s only paid out in a “should retire” scenario and never a “ought to retire” scenario, as Over the Cap put it.
If for some purpose Tagovailoa isn’t medically cleared, Miami must pay him the $124 million steadiness on the damage ensures. They might be capable of 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 think about, as nicely. In the course of March 2025, his 2026 compensation of $54 million transitions from damage assure to full assure. That represents at the least one looming deadline that might power the Dolphins’ hand when it comes to their medium-term dedication to the QB.
If he’s cleared and Miami releases him earlier than that compensation turns into totally assured, they may 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 longer term.
