The final damage report is in as the Dolphins formally release Tua Tagovailoa on Thursday

The numbers are in on the salary cap fallout for Miami.

Kyle Crabbs — NFL National Writer

Mar 12, 2026 11:15 AM EDT

Miami Dolphins quarterback Tua Tagovailoa (1) is sacked by Philadelphia Eagles defensive end Josh Sweat (94) during the fourth quarter at Lincoln Financial Field. Eric Hartline-Imagn Images

The Miami Dolphins made it official on Thursday morning.

Tua Tagovailoa was released with a Post-June 1st designation, marking the official end of his six-year run with the franchise. Tagovailoa will now move on to Atlanta for a season with the Falcons. The Dolphins will move on to Malik Willis. But the residue of this marriage gone awry will linger through the end of 2027. And now, with the move formally processed, we know the final damage report against the salary cap. The Dolphins, in their maneuvering, made a wise decision that will help this transition.

Dolphins elected to exercise $15 million option bonus before releasing Tua Tagovailoa

Some news, per source: The Dolphins exercised Tua's 2026 option bonus prior to his release. So his dead cap charge on the Dolphins' 2026 books will be $55.4 M (as opposed to $67 M). His dead cap charge will be $43.8 M in 2027. Gives Dolphins lot more flexibility beginning June 2
— Barry Jackson (@flasportsbuzz) March 12, 2026

Miami (wisely) elected to smooth over Tagovailoa’s lingering salary cap charges by using the first day of the league year to exercise a $15 million option bonus that was previously written into his contract before processing his release. The first clue that Miami had decided to execute this maneuver was that he was not released on Wednesday alongside Bradley Chubb, the team’s other Post-June 1st designated cut.

What does this option bonus achieve?

The $15 million option bonus is treated just like a signing bonus: It can be spread out into future years of salary cap accounting. By paying Tagovailoa $15 million yesterday with that bonus, the Dolphins were able to divide that money out into the remaining five years of cap accounting remaining on his contract in equal $3 million installments. Then, by releasing him today after that was formalized, the Dolphins will carry his contract on their books through June 1st (although he is free to sign elsewhere at any time), before taking on his payment this year and the 2026 deferments from past payments. All future debts against the cap (including $12M of the $15M option bonus he received yesterday) will be counted as dead money in 2027.

Had Miami not executed this option, it would have been in line to lose over $11 million of salary cap space effective on June 2nd. Fans are rightfully ready to see as much of this contract off the books as possible — but Miami’s situation is tight. And the cap savings they get from Chubb’s release ($20 million) are sorely needed for helping the team survive their reset year against the cap.

And, of course, as long as the Dolphins don’t spend their cap space this year once they get relief in June, they can roll it over to 2027 and negate the extra cap they deferred on their Tagovailoa debts. The salary cap does not have a “don’t use it, you lose it” policy.

Reporting on this situation and the fallout was all over the map as recently as Monday. We now have the final tally. Miami will incur $55.4M in dead cap in 2026 (nearly equal to his cap charge for being on the roster) and a $43.8M dead cap charge in 2027 (versus a $53.4M cap charge if he were still under contract). After that? It’s water under the bridge and smooth sailing from there.