Financial Planning The Terron Armstead 2025 Decision

Terron must first make his decision — then the Dolphins must make theirs.

Terron Armstead made the media rounds this week in New Orleans as a part of the Super Bowl media parade that comes each February. His appearances felt rather involved for someone who is reportedly mulling over his future as an NFL player. He reportedly considered retirement last offseason — but that was before he posted his highest snap count since 2020 (820 snaps vs. 858 in 2020) and tied the most games played in a season (15) in his entire career.

Whether it was the discussion of Tyreek Hill’s needed “mending” with teammates after Hill’s sad display in the second half against the Jets or what the Dolphins need to get over the hump, Armstead certainly seemed like a player intent on playing this upcoming season.

Armstead did disclose to Dianna Russini that he will be meeting with Chris Grier and Mike McDaniel this upcoming week to make a decision on his future.

What would that look like for the Dolphins, particularly from a financial schedule? What are their options, and how would it impact the team’s inclusion of Armstead in their plans in 2025?

Armstead’s Current Contract Schedule

We’ll assume the Dolphins don’t do what they did last year, effectively tear up Terron’s remainder of the contract, and rework it for adjusted salary compensation. That’s an accomplishment to achieve once. To do it back-to-back seasons? That’s unheard of.

Armstead is currently scheduled to carry around $22-23M in cap hits over each of the next two seasons, plus a $2.916M dead cap charge in 2027 for two dummy void years from when Miami reworked his deal last offseason.

He has no guaranteed money left on his contract.

So what do each of the permutations of outcomes look like against the salary cap? Let’s start with what currently feels like the least likely — Armstead hangs it up in 2025.

Armstead Chooses To Retire This Offseason

Miami, in the event of a retirement, would have the luxury of processing his retirement as a Post-June 1st transaction to split the remaining prorated money against the cap that’s already been paid out. But to do that, you need to carry the player on the active roster until June 2nd.

Teams have, in the past, restructured a retiring player’s contract to reduce the player’s salary to the absolute minimum at the start of the league year in order to open up immediate cap space relief before processing the retirement. Players typically do not mind because they will not be playing for a salary anyway — so there’s no cash schedule to be received that would be impacted by what is a glorified bookkeeping move to manipulate the salary cap.

The Chargers achieved this exact scenario with Corey Linsley last offseason.

“Per Field Yates of ESPN, Linsley has agreed to a restructured contract that reduces his salary from $11.5 million to the minimum for the 2024 season. The Chargers gain $10.29 million in cap space by making the move.

Should Linsley be placed on the reserve/retired list after June 1, then Los Angeles can spread out the dead money from the cap hit over two seasons.”

— Pro Football Talk, February 2024

Should Armstead choose to retire, Miami could restructure his salary to the $1.21M minimum from $13.3M and remove the “likely to be received” incentives and per-game active bonus schedules from their cap books — for savings of $13.79M immediately upon the restructuring. Then, after June 1st, when a hypothetical retirement is finalized, they could remove the amended minimum salary for Armstead off their books, as well as convert him to the reserve/retired list.

These financials are laid out below:

This decision from Armstead would save Miami $13.79M in cap space at the start of the league year, $15M starting on June 2nd, and $11.414M in 2026 cap space. The team would carry an additional $10.732M dead cap charge in 2026 for the remainder of his prorated cap charges.

But what happens if Armstead chooses to play?

Armstead Chooses To Play, Dolphins Max Restructure

Let’s suppose that Miami, with their coach and general manager on something of a hot seat this offseason, decide to take advantage of a player of Armstead’s caliber by keeping him in the fray for 2025.