The churn of the NFL offseason isn’t just about teams bolstering their rosters with fresh talent. It also involves the sometimes-difficult decisions to part ways with established players whose futures no longer align with the franchise’s direction. This process, often driven by salary cap constraints and evolving team strategies, can lead to significant changes in a team’s financial landscape. A prominent example of this scenario potentially unfolding in the near future is the situation surrounding quarterback Aaron Rodgers and the New York Jets.
According to reports, the Jets have signaled their intention to move on from the veteran quarterback after just two seasons. This decision, while perhaps surprising given the initial fanfare surrounding Rodgers’ arrival, highlights the often-unpredictable nature of the NFL and the delicate balance between short-term aspirations and long-term planning. The expected course of action involves the Jets releasing Rodgers, allowing him to explore free agency and potentially continue his career with another team.
However, releasing a player of Rodgers’ stature comes with significant financial implications. His lucrative contract, even after his departure, will continue to impact the Jets’ salary cap. This lingering financial burden is what’s known as "dead money," a concept that plays a crucial role in how NFL teams manage their finances and roster construction.
Fortunately for the Jets, the NFL provides a mechanism to mitigate the immediate impact of Rodgers’ departure: the post-June 1 designation. This designation allows teams to spread a player’s dead money charge over two seasons, providing greater flexibility in managing their salary cap. Understanding this rule is essential for grasping the financial intricacies of NFL roster management.
To fully understand the post-June 1 designation, it’s crucial to first define "dead money." Dead money, also referred to as "dead cap space" or simply "dead cap," represents a salary cap charge for a player who is no longer on a team’s roster. This charge typically arises from guaranteed money, often in the form of signing bonuses, that has already been paid to a player who is subsequently released, traded, or retires.
The NFL allows teams to prorate signing bonuses, option bonuses, and certain roster bonuses over a period of up to five years. This means that while the total bonus amount is typically paid upfront, the team accounts for it by spreading it out evenly over the duration of the contract. This strategy allows teams to ease the immediate salary cap burden of signing a player and better manage their budget over time.
However, if a team and player part ways before the contract’s expiration – whether through a release, trade, or retirement – the remaining prorated bonus amount accelerates onto the team’s current salary cap. This acceleration creates the dead money charge, ensuring that the total value of the contract paid by the team aligns with the overall cap charges the player accrued during their time with the organization. This mechanism prevents teams from circumventing the salary cap rules by front-loading contracts and then releasing players without financial consequence.
A post-June 1 cut occurs when an NFL team releases a player on June 2nd or later. In this scenario, the team is permitted to split the player’s dead cap hit over two seasons rather than absorbing it all in a single year. Players released on June 1st or earlier, however, see their entire remaining prorated signing bonus accelerate onto the current year’s salary cap. This results in a larger, one-year dead money charge, which can significantly limit a team’s available salary cap space.
Therefore, it’s often advantageous for teams to release players with significant contracts after June 1st. This allows them to create greater short-term salary cap flexibility. While the team ultimately remains responsible for the full value of the dead money charge, spreading it out over two years can be more manageable for the organization’s financial planning.
If a team prefers not to wait until after June 1st to realize the benefits of cutting a player, the NFL allows them to designate up to two players per year as "post-June 1" releases. This enables the team to immediately release the player while keeping his full cap charge on the roster until June 2nd.
On June 2nd, the player’s remaining dead money is then spread over two seasons. The current year’s dead money charge will consist of the player’s prorated signing bonus for the current year, along with any guaranteed salary owed to him. The remaining prorated signing bonus will then be accounted for as a new dead money charge at the beginning of the following league year.
Returning to the example of Aaron Rodgers and the Jets, the financial implications become clearer. If the Jets were to release Rodgers during the 2025 offseason, they would incur a substantial dead money charge. However, by designating him as a post-June 1 release, they could significantly reduce the immediate impact on their 2025 salary cap.
For instance, if the Jets face a hypothetical $49 million dead money charge upon releasing Rodgers in the 2025 offseason, designating him as a post-June 1 release could reduce the 2025 dead cap hit to, say, $14 million. The remaining $35 million of dead money would then be accounted for on their 2026 salary cap. This strategic maneuver allows the Jets to navigate their financial situation with greater agility.
Another illustration can be drawn from the Atlanta Falcons’ situation with Kirk Cousins. If the Falcons were to release Cousins during the 2025 offseason, they might face a $65 million dead money charge. However, with a post-June 1 designation, this could be structured as a $40 million dead cap hit in 2025 (stemming from his guaranteed salary and a portion of his prorated signing bonus) and a $25 million cap hit in 2026 (representing the remaining portion of his prorated signing bonus).
The post-June 1 designation, therefore, is a crucial tool for NFL teams to manage their salary cap effectively when dealing with significant player departures. It allows them to balance short-term financial needs with long-term planning, ensuring they can remain competitive while navigating the complexities of the league’s financial rules.
