Tua Tagovailoa has officially signed a four-year, $212 million contract extension. This mega-deal not only makes him the highest-paid quarterback in Dolphins history but also positions him as the fifth-highest-paid QB in the NFL based on AAV. But, looks like it wasn’t just Tua’s talents or his agent’s negotiating skills that sealed the deal, head coach Mike McDaniel also played a crucial role in convincing the front office.
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In a press conference following the contract signing, Tagovailoa revealed that he heard through some sources at Dolphins headquarters that McDaniel made a case to owner Stephen Ross about Tua being the key to the team’s future.
“I don’t think he knows that I know, but I’ve been told from several birdies that are here in the facilities, that are upstairs as well, that [McDaniel] went to bat for me. The day that I went out and practiced 11-on-11, 7-on-7, before we went on that little break, he went to bat for me with our owner.” Tagovailoa told the reporters.
This is pretty cool: #Dolphins QB Tua Tagovailoa says he’s heard from “several birdies” in the building that HC Mike McDaniel went to bat for him with owner Stephen Ross to get his contract extension finalized.
“I’m very grateful for that.”pic.twitter.com/HInQBlMyD9
— Ari Meirov (@MySportsUpdate) July 28, 2024
McDaniel’s vote of confidence was indeed an important step, but Tua’s on-field performance itself speaks volumes too. He’s had two consecutive 3,000-plus yard passing seasons, and last year, he topped the NFL charts with an impressive 4,624 passing yards. But there were some doubts about Tua’s ability to shine against elite, championship-caliber teams.
3️⃣0️⃣0️⃣0️⃣ for QB1! pic.twitter.com/bMuNmCNHtN
— Miami Dolphins (@MiamiDolphins) November 24, 2023
Nevertheless, Tua has emerged as Miami’s most promising quarterback since the Dan Marino era ended. And his new contract extension just shows the team’s faith in his potential.
Let’s have a look at a few details of his contract extension and what it means for Tua and the Dolphins moving forward.
Breaking Down Tua Tagovailoa’s Contract Extension
Tua Tagovailoa’s contract extension with the Miami Dolphins is a massive one. The $212.4 million contract includes $93.1 million in full guarantees, with a practical guarantee of around $167.1 million, per Spotrac. It’s definitely a big investment in Tua’s future, but the Dolphins have also cleverly structured it for some immediate cap relief.
In 2024, Tua’s cap hit is a modest $9.5 million, down $13.6 million from what it would have been earlier. This smart financial maneuvering gives Miami some breathing room in the short term.
The real intrigue starts in 2025. Tua is set to earn a massive $53.1 million base salary in 2026, which becomes guaranteed at the start of the 2025 league year. This means he’s virtually assured a $54 million payday, regardless of his 2024 performance.
But here’s where it gets complicated. Tua’s cap hit would skyrocket in the following years: $59.4 million in 2025, $63.4 million in 2026, $45.4 million in 2027, and $57.8 million in 2028. If Tua lives up to expectations, the Dolphins will likely look to restructure or extend his contract to manage these hefty cap hits. It’s just a common practice in NFL financial planning.
However, if doubts arise about Tua’s tag as the franchise quarterback, the Dolphins might consider trading him or letting him play out the 2026 season with that huge cap hit. And then eventually figure a way to go about their future. So, what the Dolphins seem to have done is, get some flexibility while showing faith in Tua’s potential at the same time.
