Guide
Dead money in dynasty fantasy football
Dead money is the salary cap penalty when you cut a player before their contract expires in a contract dynasty league. It exists to make contract length meaningful. Without dead money, teams could sign players to long, cheap deals and drop them the moment they underperform. Dead money forces real trade-offs about when to cut, when to trade, and when to ride out a bad contract.
How dead money is calculated
On League Tycoon, dead money is charged across two seasons only: the current season and the following season. There is never dead money beyond year two.
- 1Current season: 100% of salary. The player's full salary stays on your cap for the rest of the current season, even though the player is no longer on your roster.
- 2Next season: (remaining years − 1) × 25% of salary. This is charged as a single lump sum the following season. It is not spread across multiple future years. After the second season, the dead money is gone.
All dead money amounts are rounded up to the nearest dollar.
| Years remaining | Current season | Next season | Year 3+ |
|---|---|---|---|
| 1 year (final year) | 100% of salary | $0 | $0 |
| 2 years | 100% of salary | 25% of salary | $0 |
| 3 years | 100% of salary | 50% of salary | $0 |
| 4 years | 100% of salary | 75% of salary | $0 |
| 5 years | 100% of salary | 100% of salary | $0 |
The next-season penalty is always a single charge, not spread across multiple years. After two seasons, all dead money from that cut is cleared.
Worked example
Cutting a $20 player with 4 years remaining
You signed a wide receiver to a 4-year deal at $20 per year. After the first season, you decide to cut them. There are 3 years left on the contract.
Total dead money: $30 across two seasons. Compare that to the $60 you would have paid keeping the player for the remaining 3 years at $20 per year.
The math creates a real trade-off: cutting an underperforming player saves money long-term but creates a short-term cap hit. Contending teams need to think carefully about whether they can absorb the dead money, especially the lump-sum charge next season.
Practice squad dead money and rookie risk
Practice squad players have significantly lower dead money penalties by default:
- Current season: 25% of salary (compared to 100% for regular roster players)
- Next season: 0% (no future dead money at all)
This is one of the more important strategic details in contract dynasty. Lower practice squad dead money makes rookie draft picks more valuable because it reduces the cost of cutting a rookie who does not develop.
When you draft a rookie and stash them on the practice squad, you are taking a low-risk bet. If the player breaks out, you promote them to the active roster on a cheap contract. If they do not work out, you can cut them for minimal dead money and move on. That dynamic makes draft capital more valuable and encourages leagues to invest in player development rather than only chasing proven veterans.
Example: cutting a practice squad player
You drafted a rookie in the 3rd round, stashed them on the practice squad at $5 salary on a 3-year contract. After one year, they are not developing and you want to cut them.
Compare this to cutting the same player from the active roster: $5 this season + $3 next season = $8 total. The practice squad saved $6 in dead money on a player who did not pan out.
Strategic implications
Final-year cuts are free
When a player is in their last contract year, cutting them carries no next-season dead money. This is the cheapest time to move on from an underperforming player.
Trades avoid dead money entirely
Trading a player transfers their full contract to the new team. If you want to move on from a player with years remaining, trading is better than cutting.
Long contracts carry more risk
A 4-year deal on a player who busts creates a larger next-season dead money charge. Reserve long contracts for players you are confident in, or stash development players on the practice squad.
Rebuilding teams can absorb dead money
If you are not competing this year, taking on dead money to clear expensive contracts can accelerate a rebuild. The cap relief the following season is worth the short-term pain.
Use the practice squad for development
Stashing rookies and long-shot players on the practice squad lets you take more roster risks. If they do not work out, the dead money penalty is minimal.
Commissioner controls
Commissioners can configure all four dead money percentages to fit their league:
Commissioners can also manually adjust the dead money total for any team at any time. This is useful for correcting edge cases or implementing custom league rules around dead money.