The Downside of Rewarding Holdouts

The Miami Dolphins find themselves in a precarious position this offseason as two of their star players, Jonnu Smith and Zach Sieler, seem to be asking for more money. Many teams deal with stars holding out, some like the Cincinnati Bengals have issues with getting rookies to sign their contracts.

Miami, however, has put itself in this position by perpetually rewarding players for holding out. At first glance, the inclination to reward these players makes sense; you want to build a team culture that makes players feel like their hard work will be rewarded.

For many, the NFL is a fleeting moment where they will have the opportunity to make money at a rate that is frankly unobtainable for most people. So it makes sense that these players wish to cash in as much as possible. 

On the other hand, the Miami Dolphins are a business, one that in theory should be in the business of optimizing success on the field in order to drive up the value of the franchise. As such it is a tight rope that they walk, retaining their most talented players but at the cost of having to employ less talented players at other positions.

Over the past decade, the Dolphins’ front office and general manager Chris Grier have made it clear that they will increase a star player’s salary should they hold out. This isn’t something that is especially rare in the NFL; plenty of teams find themselves locked in tense negotiations with star players looking for a raise from their rookie deals.

What sets the Dolphins apart is that they seemingly find themselves giving out large contracts and then being forced to adjust those contracts after a couple of years. 

Take Xavien Howard for instance, It’s inarguable that in his prime he was one of if not the top cornerback in the league. He was rewarded for his stellar play in 2019 with a five-year $76.5 million contract, making him the highest-paid cornerback in the league at the time. He played under the contract until 2021, when he would make it known that he felt undervalued and underpaid, causing him to request a trade and eventually leading to the Dolphins reworking his contract to make him once again the highest paid at his position.

Then the very next season, he was given a new five-year contract worth $50.691 million in new money. He would play two seasons under the new deal before being released in the summer of 2024. However, it should be noted that he counted against the cap for over $11 million in 2024 and will count for $15 million this upcoming season. 

The Dolphins have also rewarded their other star cornerback Jalen Ramsey with a pay increase during his short time in Miami. After being traded to the Dolphins in 2023 and missing a good portion of that season with a torn meniscus, Ramsey was signed to a new 3 year contract worth $72.30 million, making him the highest-paid cornerback in the league. After a forgettable season in 2024, it was announced that the team and Ramsey would be parting ways, and Miami would be seeking a trade partner.

What makes that situation complicated is that the massive contract limits the number of teams that the Dolphins might attract, and Miami will be stuck with $6.7 million in dead cap. 

Zach Sieler has been an amazing feel-good story for Miami. The former 7th-round pick of the Baltimore Ravens has become one of the better defensive tackles in the league. In 2023, he was rewarded for his hard work and progression with a 3 year $38.65 million contract, signaling that Miami preferred to keep him over former first-round pick Christian Wilkins.