NFL Free Agency 2026 — What's That Contract Really Worth?

NFL Salary Cap Explained

Signing Bonus Proration

Under the NFL CBA, signing bonuses are prorated over the life of the contract, with a maximum of 5 years. A 7-year deal with a $70M bonus prorates over 5 years ($14M/year), not 7.

Void years extend proration without adding real years. A 3-year deal with 2 void years prorates the bonus over 5 years, lowering annual cap hits. When the contract voids, remaining prorated bonus accelerates.

Dead Cap Mechanics

Dead cap is money that counts against the cap after a player is released. It includes: (1) remaining prorated signing bonus, (2) guaranteed salary not yet paid. If you cut a player with $20M in unamortized bonus, that $20M accelerates onto the current year cap — no exceptions.

Post-June 1 cuts allow splitting dead cap: current year gets one year of proration, next year gets the rest. Pre-June 1 cuts accelerate everything immediately.

Fully Guaranteed vs Injury Guarantees

Fully guaranteed money is paid regardless of injury, performance, or release. Deshaun Watson\'s $230M fully guaranteed was historic. Most NFL guarantees are "guaranteed for injury" — they vest year-by-year. If cut for performance before vesting, the team owes nothing.

Rolling guarantees (e.g., "guaranteed for skill and injury") vest on specific dates. A Year 3 guarantee might vest on the 5th league day of Year 2. Miss that date and the guarantee is gone.

Franchise Tag Types

Three tag types: Exclusive, Non-Exclusive, Transition. Amounts vary by position.

• Exclusive: Average of top 5 salaries at position. Player cannot negotiate with other teams.
• Non-Exclusive: Average of top 5 over prior 5 years. Other teams can offer; original team gets 2 first-round picks if they don\'t match.
• Transition: Average of top 10. Right to match only — no compensation if player leaves.

QB exclusive tag ~$45M+ in 2026; WR ~$28M; RB ~$14M. Tags are often used as leverage during extension negotiations.

Position Market Rates 2026

Top-of-market APY by position (approximate, based on Spotrac/Over The Cap):

Cap Casualty Analysis

When cap space is tight, teams cut players with high cap hits and low dead cap. A veteran with $15M cap hit and $5M dead cap saves $10M if cut. A player with $20M dead cap is "uncuttable" — the cap hit is lower than the dead cap.

Use the dead cap trajectory chart to see when a contract becomes cuttable. Dead cap typically decreases each year as proration is absorbed.

Void Years Loophole

Void years are fake years added to spread signing bonus. A 2-year deal with 3 void years prorates over 5 years. When the contract voids after Year 2, the remaining $X in prorated bonus accelerates as dead cap. Teams use this to lower early cap hits when they have cap space later.

Risk: if the player underperforms, you\'re stuck with dead cap in void years. Tom Brady\'s Buccaneers used void years extensively; the bill came due when he retired.

Restructuring Contracts

Restructures convert base salary into signing bonus. A $20M base salary becomes a $20M bonus prorated over 5 years = $4M/year cap hit. Saves $16M in Year 1 but pushes $16M into future years. Kicking the can.

Teams restructure when cap-strapped. The Saints have restructured for years — cap hell eventually arrives.

Historical Context

NFL free agency exploded in the 1990s. Reggie White\'s 1993 deal with Green Bay ($17M/4yr) was groundbreaking. Today, $17M is a backup QB. The cap has grown from $34.6M (1994) to $272M (2026). QB contracts lead the way; Patrick Mahomes, Josh Allen, and Lamar Jackson set new benchmarks. WR and EDGE markets have surged. RB market has stagnated — teams devalue the position.

Sources: NFL.com, Spotrac, Over The Cap. This calculator uses CBA rules for proration and dead cap. Actual contracts may include roster bonuses, incentives, and option years not modeled here.