What Is A Dead Money Charge In The NFL

A dead money charge is the amount of salary cap space that a team has taken up on their roster without having a player on their current roster.

Explanation of Dead Money Charges

When it comes to the NFL, "dead money" refers to the salary cap space that is taken up by a player no longer on the team. This can happen if a player is released, traded, or retired. The dead money charge is the amount of money that counts against the salary cap for that player.

For example, let's say a team has a salary cap of $100 million. They have 50 players under contract, and each of those players has a salary of $1 million. That leaves $50 million in salary cap space. However, if the team has one player who was released and has a dead money charge of $5 million, then they only have $45 million in salary cap space.

Dead money charges can have a big impact on a team's salary cap situation. It's important to be aware of them when trying to understand how much room a team has to work with when it comes to signing new players or extending existing contracts.

What are some common reasons for dead money charges?

One common reason for a dead money charge is when a player is released or traded after signing a multi-year contract. If the player was signed to a contract worth $10 million over four years, but is only with the team for two years, the team will still owe him $5 million. That $5 million is considered dead money.

Another common reason for dead money is when a player retires. If a player signs a four-year, $20 million contract and retires after two years, his team will be on the hook for $10 million in dead money.

Finally, if a player is suspended by the NFL, his team may be required to pay him his salary while he is suspended. If that suspension lasts longer than one season, his salary will count as dead money against the team's salary cap.

How does a team account for dead money on the salary cap?

When a team releases a player, or a player retires, there is often "dead money" left on the team's salary cap. This is money that the team has already paid out to the player, but which is no longer counting towards the salary cap. The team still has to pay this money to the player, but it doesn't get any benefit from it.

This can be a problem for teams who are trying to stay under the salary cap. If they have a lot of dead money, it can eat up a large part of their budget and leave them with less money to sign new players or extend existing players.

There are a few ways to deal with dead money. Teams can try to trade players who have large dead money charges attached to them. They can also release players outright, although this may not be popular with the fans.

Another way to deal with dead money is to wait it out. The charge will eventually go away after a few years, and the team will be able to use that money again. This is often the best option for teams, as it doesn't require them to take any immediate action.

Conclusion

A dead money charge in the NFL is a charge against a team's salary cap for a player who is no longer on the team. The charge is the amount of money that would have been owed to the player if he had remained on the team. Dead money charges can be large, and they can have a significant impact on a team's salary cap situation.