The Miami Dolphins recently made what was seemingly an inevitable move, trading veteran wide receiver Jaylen Waddle to the Denver Broncos. While the blockbuster trade set Miami up with a ton of picks for what could be a transformative 2026 Draft, the move also put the Dolphins further in the hole as it pertains to the salary cap.
By trading away Waddle, who is entering the first year of a three-year extension worth $84.75 million that he signed with Miami, the Dolphins take on a $23.2 million dead cap hit. That moves the franchise over $165 million in dead money for the 2026 season, because of all the high-paid veterans that the team has recently parted ways with.
The #Dolphins will have over $165M in dead money on their 2026 salary cap this upcoming season.
— Ari Meirov (@MySportsUpdate) March 17, 2026
More than $165M of a $301.2M cap will be devoted to players no longer on the team.
That includes Tua Tagovailoa, Tyreek Hill, Jaylen Waddle, Jalen Ramsey, Minkah Fitzpatrick, and… https://t.co/qKiKiiaeBu
The Miami Dolphins have over $165 million in dead cap following Jaylen Waddle trade
Miami was one of the most promising teams in the league just a few years ago, and that's why the franchise went all in, paying guys like Waddle, Tua Tagovailoa, Tyreek Hill, Bradley Chubb, Jalen Ramsey, and more. Now, all of those players are gone, but their contracts will still affect the team. While teams throughout the league celebrate a record $301.2 million salary cap, the Dolphins will have to navigate a significant portion of that cap going to players who are no longer with the team.
That reality puts immediate pressure on Miami’s new regime — specifically, general manager Jon-Eric Sullivan. While the Dolphins aren’t expected to be contenders in year one of this new era, they still have to try to build a competitive team. It’s tough to do that when working with limited cap space because your highest-paid players are with another team.
However, it’s not impossible. Many teams have built solid rosters while dealing with significant dead cap hits, and the key to doing so is by building throughout the draft. The Dolphins, now with 11 total picks in 2026 — seven in the top 100 — have the resources to do just that.
However, this is Jon-Eric Sullivan’s first year as a GM. While it’s great that he has resources in his first year calling the shots, the pressure will absolutely be cranked up because Miami needs to knock this draft out of the park if the franchise is going to quickly climb out of the hole dug by the previous era.