When Tom Brady decided that the next phase of his career would take place in Tampa Bay, the New England Patriots lost a lot. They lost their quarterback. They lost their leader. And, they also lost millions of dollars in cap space.
Last August, Brady signed an extension that was described as a two-year extension worth $70 million. It looked like he would be in New England through 2021. However, a closer look at the contract revealed that it was more of a pay raise for Brady in 2019, with two void years (essentially fake seasons used to help structure salary cap hits) in 2020 and 2021.
New England gave Brady a $20.25 million bonus in 2019, and the void years allowed the cap hits to be spread out. In 2019, that bonus cost $5.5 million in cap dollars. Then, in 2020 and 2021, it would cost the Patriots $6.75 million each year unless he didn’t extend his contract before the start of the 2020 league year. If he decided to sign elsewhere, re-sign after the league year began, or quit the sport altogether, the $6.75 million cap hit from 2021 would accelerate to 2020.
Now, Brady is a Buccaneer. That 2021 cap hit has accelerated to 2020, meaning the Patriots have $13.5 million on the cap in dead money because of Brady’s contract. They can’t spend any of that money on free agents or retaining their own players. It may have been useful to help pay a guy like Kyle Van Noy, or it could’ve lured in a tight end that the team desperately needs.
According to Over the Cap, the Patriots currently sit at third in the NFL in dead cap space with just under $26 million dedicated to players that are no longer with the organization. They sit just behind the Jaguars ($34 million) and the Panthers ($36.5 million). Brady’s contract is a large part of that. For the team, that cap burden will be gone next year, but for 2020, Brady’s decision hurts more than just their quarterback play.
