Miami has a Cap Space Dilemma

Miami has a Cap Space Dilemma

If you are reading this, there is a high chance you already know Miami’s cap situation isn’t pretty. The Dolphins are in a tough spot, and there are 2 paths that the newly formed front office can take in March. This article will walk you through both, but fair warning, neither is pretty for our Miami Dolphins.

Firstly, let’s define “cap room”. The cap room for NFL teams is the money the league allocates that they can spend. Simple equation: cap room minus cap commitments (contracts). The NFL’s cap room has gradually increased year after year due to the booming success of sponsors, viewership, TV deals, etc. Miami’s projected cap room for the 2026 season currently stands at -22.68 million dollars. Yes, that is a negative sign in front of the figure.

Let’s delve into the two avenues they can take to fix the cap room and improve the team.

Both avenues have 2 things in common: the post-June 1 designated release of receiver Tyreek Hill and quarterback Tua Tagovailoa. A club is permitted 2 post-June 1 designated releases (a tactic to lower the cap penalty for the new league year). The electric receiver and once franchise quarterback will be off the team in March. The new league year starts March 11th, 2026.

The first avenue the new decision makers can take is the “yard sale”. Names like Bradley Chubb, Minkah Fitzpatrick, Austin Jackson, James Daniels, Nick Westbrook-Ikhine, and Tyrel Dodson all save a favorable amount of cap room if released by Miami.

The Dolphins can also restructure players (by giving a player his remaining salary as a signing bonus and spreading his cap hit/dead cap over his remaining years). Notably, defensive tackle Zach Sieler and wide receiver Jaylen Waddle can be easily restructured to create 2026 cap relief.

This would leave the team with enough cap room to sign spot starters (such as free-agent edge rusher Joseph Ossai) and the entire 2026 rookie class (usually about an 11-million-dollar allocation), which would be around 35 million dollars before any moves. The Dolphins would then have a skeleton crew of older players, prove it deals, and 4-5 of their rookies starting.

The second option is something I’d call the “Pittsburgh Steelers” method. We’ve seen that team sign veterans to short-term deals for the last five years. Chris Grier did a version of this, patching up defensive holes with veterans on 1 year deals such as Rasul Douglas and Ashtyn Davis. Signing players of that caliber to short-term deals constantly doesn’t help the gelling of a team. The new regime may not be interested in having a completely stripped-down roster in year 1, giving them a bad look.

This avenue can lead them to resign notable free agents like Rasul Douglas and Greg Dulcich, while also reaching out to average players on the tail ends of their careers. They can weasel lots of cap room by restructuring Zach Sieler, Austin Jackson, and Jaylen Waddle. Combine that with a good draft, our new general manager’s specialty, and Miami may be able to reach the playoffs in year one.  The playoffs are obviously exciting, but this would hurt Miami long-term by leaving them with low cap space year after year and a plethora of pending free agents.

Obviously, this isn’t what many fans want to hear. Our Miami Dolphins must either strip the roster down and rebuild (again) or attempt to scrap together cheap veterans and hit on draft picks for early playoff success. The cap room is projected to be 28th in the league and in the negatives, meaning big moves are coming.

I do believe the leash is long for our new regime. The Dolphins will choose option 1, a rebuild, and it is fortunate that they have 5 draft picks in the top 90 come April.

If I were in charge of everything Miami Dolphins-related, I would also do option 1. A rebuild is due, as Chris Grier failed his last attempt, leading to his firing. Jon Eric Sullivan is putting together his new front office and coaching staff, and it doesn’t make much sense to attempt a short playoff stint rather than start building your base through the draft.

Wherever you found this article, I’d love to see everyone’s opinion. What would YOU do if given the choice between a rebuild and a push for the playoffs?