When a player is traded, the acquiring team absorbs the remaining base salary and any new prorated bonus, while the original team retains all previously prorated signing bonus money as dead money.
Trades in the NFL carry significant salary cap consequences for both teams involved. The key principle is that prorated signing bonus money cannot be transferred -- it stays with the original team as dead money that accelerates onto the cap in the year of the trade. The acquiring team takes on the player's remaining base salary, roster bonuses, and any new money added through a renegotiation or extension. For the trading team, the cap hit depends on when the trade occurs. If a player has $10 million in remaining prorated signing bonus spread over two years, all of that accelerates into the current year's cap when the trade happens. This is why teams sometimes delay trades or time them strategically around June 1, when the dead money can be split across two cap years using a post-June 1 designation. For the acquiring team, the cap hit is typically just the player's remaining base salary for the current season, making mid-season trades relatively cap-friendly for buyers. However, the acquiring team must also consider future-year cap implications if the player has a multi-year deal, and whether they will need to extend the player at a higher price.
When the Dolphins traded for Tyreek Hill in 2022, the Chiefs absorbed $12.7 million in dead money from Hill's remaining prorated signing bonus. The Dolphins then signed Hill to a new four-year, $120 million extension, taking on the full cap implications of the new deal.
Trading team dead money = Total remaining prorated signing bonus (accelerated) Acquiring team cap hit = Remaining base salary + roster bonuses for current year
Category: Trades & Transactions. Part of the StickToTheModel NFL Encyclopedia.