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HomeInformativeNFL cap hit explained: How does a cap hit work?

NFL cap hit explained: How does a cap hit work?

If you watch the NFL, you might have heard the phrase “Cap hit a lot.” Whenever a player’s contract is about to end or someone is about to sign a contract, experts and commentators start talking about the cap hit or dead cap. If you don’t know what it means, you are on the right page. This article is about an NFL cap hit explained in easy detail. So, let’s not wait anymore and take a look at what a cap hit means.

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NFL cap hit explained

First of all, when a player signs a contract, there are a few things related to the contract. Like signing bonus, guaranteed at signing, guaranteed amount of contract, and annual salary, etc. All of this plays a major role when a player signs a contract.

Secondly, let’s understand what cap hit refers to. Cap hit refers to the player who is no longer a part of the team or 53-man roster. When a player is released or traded before his contract ends, a cap hit takes place.

To make it more simple, a cap hit is related to the player’s signing bonus.

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When a player signs a contract, there is a certain amount given to the player as a signing bonus. Well, the signing bonus money is not completely given to the player. It is given at regular intervals, depending on his contract duration. For example, if a player is getting $25 million as a signing bonus for a five-year contract, he will be getting $5 million every year until his contract duration of five years. At the place of the team giving all the $25 million in the first year.

Now, if the player is traded or released by the team after two years of his contract, He has only received $10 million as the signing bonus. This doesn’t mean that he will be getting the remaining $15 million because the player was a part of the team only for two years and not five years. So, the remaining $15 million collectively will be considered an NFL cap hit or dead money.

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Nikhil Lopes
Nikhil Lopeshttp://thesportslite.com
Hello Everyone, I am Nikhil Lopes, working as the Content Editor for The Sportslite. I am a Sports Addict and love to watch & Write about them.

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