Breaking Down Jackson's New Contract and its Cap Implications

Austin Jackson's new contract carries a low cap number for 2024, but the Dolphins still will have a lot of deal-making to do

The Miami Dolphins decision makers have some tough choices to make this offseason trying to keep this roster together, and last week's signing of offensive tackle Austin Jackson could complicate the books even more.

Because Jackson, the lone starting offensive lineman who has played every game this season, only received a $5 million signing bonus, and has a base salary of $1.1 million in 2024, there's very little wiggle room to restructure the three-year, $36 million contract he signed last week.

That means Jackson likely won't be a player whose contact can be reworked to help create necessary cap space for the 2024 offseason because of how the contract is structured.

Unlike defensive tackle Zach Sieler, who received a similar three-year, $30.7 million extension before the season started, Jackson's 2024 cap hit is relatively low. It's slightly under $4.1 million next season because of the $6.6 million option bonus he's due that offseason, which puts two voidable years into his contract, which is designed to create fabricated cap space.

For comparison sake, Sieler's base salary in 2024 is $8.1 million, and his cap hit is $10.6 million, which makes him a candidate to have his contract re-worked this offseason when the Dolphins are trying to create cap space like they did last offseason when Miami reworked Tyreek Hill, Bradley Chubb and Terron Armstead's existing deals.

Jackson took a pay cut in 2023

Jackson actually lowered his base salary this season, from $2.47 million to $2.06 million to help Miami create immediate cap space.

He took a $418,308 pay cut to facilitate his new deal, but ultimately will take home just under $7.1 million this season when his signing bonus is factored in.

The Dolphins still have $2.7 million in cap space to use in the final four weeks of the regular season. If that money isn't used, it will be carried over to next season.

If Jackson is on the roster on the third day of the 2024 league year, $5 million of future salary becomes fully guaranteed, so he'll ultimately earn $10.6 million next season, and that's without factoring in his $25,000 workout bonuses, and $595,000 roster bonus, which pays the offensive tackle an additional $35,000 for every game he's active for. 

Jackson's cap number rises to $13.83 million in both 2025 and 2026. His base salaries of $10.88 million in 2025, and $9.88 million in 2026 aren’t guaranteed. But there are triggers in his 2025 salary that guarantees $5 million of his salary in 2025 if he's on the roster on March 17 next year, and another portion is guaranteed for injury.

The contract features $3 million in incentives that are tied to performance.

And if Jackson is on the roster on the third day of the 2026 league year, he will earn a $1 million roster bonus. 

Dolphins have $41 million deficit in 2024

The Dolphins are slated to be $41 million over the projected salary cap of $242 million in 2024, which means the franchise will have to purge some players and restructure a couple of existing contracts simply to comply with the NFL rules.

Transactions like releasing pass rusher Emmanuel Ogbah, which could clear $15.8 million in cap space, and a few others are needed to put the franchise in position to make the roster moves necessary to replenish, if not improve, the roster.

Don't be surprised if the Dolphins are forced to restructure Hill, Armstead, Jalen Ramsey, Xavien Howard, Sieler, Alec Ingold and Durham Smythe's existing contracts, and release other players whose guaranteed portion of their contract has expired to create the necessary spending room to re-sign free agents like defensive tackles Christian Wilkins and Raekwon Davis, starting right guard Robert Hunt, linebacker Andrew Van Ginkel, and potentially lock up quarterback Tua Tagovailoa and safety Jevon Holland with contract extensions in 2024.

When asked about about the upcoming cap crisis back in August, General Manager Chris Grier didn't seem concerned about the belt-tightening his team needed to do. He's likely expecting owner Steve Ross to bail the team out by paying high-paid veterans bonuses that would lower their base salaries in 2024.

"As you watch every team around the league, there’s some teams $100 million over and all of a sudden, they find a way to get under," Grier said, likely referring to the New Orleans Saints, who are drastically over the salary cap at the start of every offseason.

Eight teams — Pittsburgh, Cleveland, Dallas, Denver Miami, Los Angeles Chargers, Buffalo and New Orleans — are presently over the projected salary cap at this time, and the Saints are $87.2 million over.

"I’m not worried about that," Grier continued. "Brandon (Shore) and Max (Napolitano) do a fantastic job and we have a lot of discussions on not just short term, but long term [matters]. We have a lot of good players coming available, not just Christian. We have a lot of guys here in the pipeline [becoming free agents] over the next couple of years that are going to be expensive players."

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