With Tom Brady announcing his retirement — apparently for good this time — the Tampa Bay Buccaneers can now start planning to be without the star quarterback. One of the first things the Buccaneers need to work out this offseason is their salary cap situation.
Currently projected to be $50 million over the cap when the new league year begins on March 15, could the Buccaneers work with Brady to help them get out of the tough situation they find themselves in financially?
Tom Brady’s Retirement Could Help the Tampa Bay Buccaneers’ Salary Cap Situation
As it stands on Feb. 1, the Buccaneers are projected to be $55.715 million over the cap in 2023. A big part of that is the $35.104 million in dead money that will remain when Brady’s contract voids this offseason.
To make their salary cap work with several high-priced veterans under contract in recent years, the Buccaneers utilized void years in Brady’s deal to spread his money. Unfortunately, those void years come back to impact the cap when the contract ends, which is what we are seeing now.
One way to limit the impact of void years is with contract extensions. The problem is if a player keeps playing, then you need him to be willing to take a team-friendly contract so as not to compound the issue. To some extent, Brady’s retirement actually makes that situation easier.
We have seen teams manage the retirements of star players in clever ways to limit the salary cap impact on previous occasions. However, in the majority of those situations, the player was still under contract for the following season. Technically, Brady is still under contract with the Buccaneers, but the impending voiding of the contract would mean Brady and the Buccaneers need to agree to a new deal.
The financials of it are fairly simple. If Brady’s contract with the Buccaneers ends on June 1, 2023, or before, he will count $35.104 million against the 2023 salary cap. However, if the contract ends or Brady is placed on the Retired List after June 1, 2023, then the dead money is split between the 2023 and 2024 salary caps.
To make it work, Brady and Tampa Bay would need to agree to a one-year deal for the veteran minimum salary of $1.165 million. That would prevent the money that is currently prorated out between 2024 and 2026 from accelerating onto the 2023 salary cap.
If this does occur, Brady would carry an $11.941 million salary cap number when the new league year begins on March 15, 2023. That would represent a saving of $23.163 million on his current projected cap number if the deal simply voids. If the Buccaneers then either release Brady or designate him as retired, his cap number for 2023 will be $10.776 million.
It is worth noting that if the Buccaneers’ take this route, the remaining $24.328 million will be on the 2024 salary cap. There is no deal that Brady and the Buccaneers can do to reduce the fact they need to absorb $35.104 million on their salary cap, but they do have a chance to spread the money across two years. Doing so could allow them to retain or add some key options in 2023 and potentially remain competitive despite Brady’s retirement.