How does Jaylen Waddle’s contract extension impact Miami’s salary cap?

The Miami Dolphins swiftly signed wide receiver Jaylen Waddle to a three-year contract extension earlier this week. Miami picked up the 2025 fifth-year option of Waddle’s rookie contract in April and the extension adds three years to that deal, meaning he’s signed through the 2028 season.

Waddle’s five-year plan with the Dolphins makes him the league’s fourth-highest-paid wide receiver in terms of average value. His $28.25 million annual salary trails only AJ Brown ($32 million), Amon-Ra St. Brown ($30.02 million), and Tyreek Hill ($30 million). Waddle’s deal included nearly $36 million guaranteed at signing and his 2024 cap hit increased by $1.28 million for the 2024 season, according to Spotrac.

Miami will pay Waddle $9 million in 2024 — roughly 3.5 percent of the 2024 salary cap. That balloons to $19,924,600 (7.29% of the cap) in 2025. The contract’s yearly cap percentage slowly increases from 2026 through 2028, but there’s a potential out with a dead cap hit of $3,77,4,600 following the 2027 campaign.

Jaylen Waddle’s $84,750,000 contract extension

• 2024 cap hit - $9,094,326 (3.56% of the salary cap)
• 2025 cap hit - $19,924,600 (7.29% of the salary cap)
• 2026 cap hit - $21,015,600 (7.19 % of the salary cap)
• 2027 cap hit - $27,774,600 (8.88% of the salary cap)
• 2028 cap hit - $31,148,600 (9.30% of the salary cap)

“This will continue the continuity on the offensive side of the ball,” former Dolphins general manager Rick Spielman said on Sirius XM NFL Radio. “[The contract extensions] are things that you are planning for probably last year. Chris Grier’s been looking at this, or even the year before, because you try to plan at least two years out from a cap perspective on what it’s going to look like.”

Hill’s annual salary remains above Waddle’s because of a 2026 salary cap hit of $56 million. Not only is that the offseason Waddle’s extension truly kicks in, but the Dolphins can escape Hill’s contract with $45 million in cap savings and a dead-money hit of $11 million.

Miami continues to work on Tua Tagovailoa’s contract extension with Jaelan Phillips and Jevon Holland also due for extensions. Still, Hill could also knock on general manager Chris Grier’s door after back-to-back seasons with 119 receptions and over 1,700 receiving yards as the offense’s high-powered motor.

The Dolphins face tough decisions after years of maintaining a roster that went four straight seasons without a losing record. Waddle’s contract extension is a step, but a small one, in the right direction. miami sits $16 million above the 2025 salary cap before considering Tagovailoa’s new deal and any looming contracts.