Tagovailoa signed a four-year, $212.4 million extension in 2024, complicating any potential salary-cap maneuvering. Miami has indicated a preference for trading him to recoup some value, but league insiders suggest a willing trade partner may be unlikely given the heavy financial commitment.
As a result, the Dolphins appear to be leaning toward designating Tagovailoa as a post-June 1 release to mitigate the massive dead-cap hit, which would still amount to a substantial cost. This approach would spread the financial impact across the 2026 and 2027 seasons, rather than concentrating it entirely in 2026.
Even with a potential trade, Miami would likely still be responsible for a significant portion of Tagovailoa’s remaining guaranteed money, potentially offsetting any salary-cap relief gained from a deal. The front office faces a difficult balance between cutting losses and preserving cap flexibility for a rebuild.
The decision comes after Tagovailoa battled the effects of concussions and a decline in performance after McDaniel’s system appeared unsustainable in 2024 and 2025. If the team releases him, it would mark a decisive shift in the Dolphins’ direction as they seek long-term stability at quarterback.
In the near term, the Dolphins’ stance remains clear: they are exploring all options, including a potential trade, but are increasingly likely to proceed with Tagovailoa’s release under post-June 1 rules if a deal cannot be reached. The outcome will shape the franchise’s strategy as they rebuild around a new core and a new quarterback plan.
