There is no denying the Miami Dolphins are cap-strapped. They have to restructure contracts to get working capital and did so again on Thursday.
While many are wondering why the Dolphins have not yet restructured Tua Tagovailoa's deal, they are making other moves to create space. On Thursday, the Dolphins managed to free up another $7.7 million as they continue to add pieces through free agency.
Austin Jackson, who missed most of the 2025 season, has agreed to convert $9.7 million into a signing bonus, which effectively reduces his cap hit this year. Miami will spread the $9 million over the course of the next couple of years.
Dolphins get immediate cap relief, but it could create issues in the future
While it is an easy fix for Miami, the truth is it could create an issue later should Jackson's health continue to be a problem. After a great 2023, Jackson was back on the injury report until he was moved to IR and missed most of the 2024 season.
The reworked deal pushes the can down the road. The Dolphins will still have to pay that money in future years, which becomes a bigger issue if he is no longer on the roster by then.
When healthy, Jackson has played well at the right tackle spot, but health is a concern. Miami had an out after the 2025 season should Jackson not be able to stay healthy. It's unclear at this point how much the Dolphins would not have to eat if they moved on from him.
According to Over The Cap, the Dolphins now have over $18 million to work with, but they have to set aside some of that for the rookies they draft in April. The working capital is likely more around the $14 million mark.
While Jackson, Armstead, and Bradley Chubb have all reworked their deals again, Tagovailoa has still not done anything with his. That has led to speculation about his long-term future.
The Dolphins need Jackson to stay healthy this year, and there is always the potential to move inside to guard if the team drafts a tackle in April. Again, when Jackson is on the field, the Dolphins are better on offense and are far more consistent running the ball to that side.