NFL Contracts 101
Learn how the salary cap works
Master the Salary Cap
Understanding NFL contracts is the key to building a championship roster. Learn the strategies GMs use to maximize talent while staying cap compliant.
🎬 Video Explainers
📚 Contract Glossary
Base Salary
Annual cash payment counting fully against this year's cap
The base salary is the fixed payment a player receives each year. It counts 100% against the salary cap in the year it's paid. Teams often restructure base salaries into signing bonuses to spread the cap hit.
Signing Bonus
Upfront payment spread across contract years (max 5)
A signing bonus is paid immediately but prorated across the contract length (up to 5 years max). For example, a $50M signing bonus on a 5-year deal counts as $10M per year against the cap.
Cap Hit
Total charge against the salary cap this year
The cap hit is the total amount counting against the salary cap: base salary + prorated bonuses + roster bonuses + any incentives earned.
Dead Money
Cap penalty if you cut the player before contract ends
Dead money is the remaining guaranteed money that accelerates onto the cap if a player is released. If you signed someone to a 5-year deal with a $50M signing bonus and cut them after year 2, you'd have $30M in dead money.
Restructure
Convert base salary to bonus to save cap now, pay later
Restructuring converts base salary into a signing bonus. This lowers the current year's cap hit but increases future cap hits. It also increases dead money if you later cut the player.
Void Years
Fake contract years to spread bonus over more time
Void years are additional years added to a contract solely to spread a signing bonus over more time. The player has no obligation to play those years - they automatically void.
🧠 GM Strategies
✅ When to Restructure
- • You need immediate cap relief
- • Player is a long-term cornerstone
- • You're in "win now" mode
- • Contract has 3+ years remaining
❌ When NOT to Restructure
- • Player might decline or get cut
- • Only 1-2 years left on deal
- • Already high dead money
- • Team is rebuilding
⚠️ Cap Hell Example
The New Orleans Saints (-$62M over cap) restructured repeatedly to keep their Super Bowl window open. Now they face years of pain.
2024: Cut Alvin Kamara? $18M dead money. Keep him? $24M cap hit.
💡 Smart Cap Example
The Kansas City Chiefs structure Patrick Mahomes' contract to keep cap hits manageable despite a $450M extension.
Key: Long deal (10 years) spreads signing bonus thin.
🔑 Key Concepts
The 5-Year Rule
Signing bonuses can only be prorated over a maximum of 5 years, even if the contract is longer. This is why teams add "void years" — fake years that help spread the bonus but don't require the player to actually play.
Dead Money Acceleration
When you cut a player, all remaining prorated bonus money "accelerates" onto the current year's cap. This creates dead money. The more you've restructured, the higher the dead money when you eventually move on.
Post-June 1 Designations
Teams can designate up to 2 players as "post-June 1" cuts. This spreads the dead money over two years instead of one, providing cap relief in the current year.