Dead Money
Definition and explanation for NFLPA exam preparation
Definition
Salary cap charges for players no longer on the team's roster, typically from remaining prorated bonus money when a player is cut or traded.
Exam Tip
Understanding Dead Money is essential for the NFLPA certification exam. This concept frequently appears in questions about financial and is often tested alongside related terms like Salary Cap and Signing Bonus.
Related Terms
Salary Cap
The maximum amount of money NFL teams can spend on player salaries in a given league year. Set annually based on league revenue.
Cap Hit
The total amount a player counts against the salary cap in a given year, including base salary, prorated bonuses, and likely-to-be-earned incentives.
Signing Bonus
An upfront payment to a player that is prorated over the life of the contract (up to 5 years) for salary cap purposes.