June 1 is a consequential date on the NFL calendar, and it is of particular importance this year as the football world waits for a resolution on Philadelphia Eagles receiver A.J. Brown.
Brown has been the subject of trade speculation throughout this offseason. He was not present at Eagles organized team activities this week. Meanwhile, quarterback Jalen Hurts, speaking at his first news conference of the offseason Wednesday, seemed to foreshadow the inevitable.
“Nothing can replace all the greatness that we achieved together,” said Hurts, who won a Super Bowl with Brown in 2024.
This saga has dragged on in part because of the June 1 aspect and how it impacts salary cap accounting.
Let’s explain.
Why does June 1 matter?
Every dollar a team pays to a player must be accounted for on the salary cap. Teams can manipulate how and when they account for this money through various mechanisms. The June 1 deadline is one of these mechanisms. It applies specifically to how teams manage cap charges for a player removed from a roster, either via release or trade.
Almost all NFL contracts will include a signing bonus. A player receives a lump-sum bonus at signing. For cap accounting purposes, the team can divide this lump sum equally over the length of the contract, up to five seasons. So as an example, if a player signs a five-year contract that includes a $20 million signing bonus, the team would account for $4 million in signing bonus in each season of the contract.
At times, a team will move on from a player before the contract has been completed. In these instances, there is signing bonus money that has been paid to the player but not accounted for on the cap. To stick with our example, if the team cut the player three seasons into the five-year contract, there would still be $8 million in signing bonus unaccounted for — $4 million in each of the last two seasons. Even though the team has moved on from the player, the money paid to the player must hit the cap. This becomes what is called dead money.
Dead money is a salary cap charge for a player who is no longer on a team’s roster. It is money paid or guaranteed to the player that has not yet been accounted for on the salary cap.
The June 1 deadline deals with this dead money. If a player is removed on or before June 1, the team must account for all the remaining bonus money in that league year. In our example, the team would incur all $8 million in dead money. If a player is removed on June 2 or later, the team can divide that money over two seasons. They would account for the original bonus money in Year 1. The following league year, they would account for the remaining bonus money. In our example, the team would account for $4 million in Year 1 and $4 million in Year 2.
At the most basic level, the June 1 deadline is a way for teams to spread out dead money.
What qualifies as a post-June 1 transaction?
Releases and trades are handled differently when it comes to the June 1 deadline. Every year, teams are allowed to designate up to two releases as post-June 1. These cuts can happen at any point between the start of the new league year and June 1, but they are treated as if the cut happened on June 2. The player is free to sign elsewhere as soon as he is cut with the post-June 1 designation. The team must account for that player’s original cap hit until June 2. At that point, the dead money is spread over the two seasons.
We saw multiple post-June 1 designations this offseason, including former Atlanta Falcons quarterback Kirk Cousins and former Miami Dolphins quarterback Tua Tagovailoa. The league added this rule in 2006. Before then, teams would hang on to players through June 2 before releasing them. Those players would then face tough market circumstances after teams had largely filled their rosters. The rule allows those players to find a new home during pre-draft free agency. Tagovailoa signed with the Falcons. Cousins signed with the Las Vegas Raiders. Teams still get the benefit of the spread dead money.
This rule does not apply to trades. A trade must be processed by the league on June 2 for the trading team to receive the salary cap benefit. If a player is traded on or before June 1, the dead money accelerates into Year 1. If a player is traded on June 2 or afterward, the money is spread. Teams cannot designate a trade as post-June 1.
For a transaction to be processed by the league on any given day, it must be submitted by 4 p.m. ET. A transaction submitted to the league at 4:01 p.m. ET would be processed the following day. To gain the post-June 1 cap benefits, a trade must be processed on June 2 or later, so anything submitted 4:01 p.m. or later on June 1 will be eligible.
So how does this affect the Eagles and Brown?
Brown signed an extension with Philadelphia in April 2024. He has already been paid out multiple bonuses, including an option bonus that is spread out through 2029. If the Eagles trade Brown, they will have to account for any bonus money that has not yet hit the cap. That total is $43.45 million, according to figures from Over the Cap.
If the Eagles trade Brown on or before June 1, they will take on that full $43.5 million in dead money in 2026.
However, if the Eagles trade Brown on or after June 2, they will spread that dead money over 2026 and 2027. The original bonus total of $16.35 million would hit the cap in 2026. The remaining bonus money of $27.1 million would hit the cap in 2027.
By waiting until June 2, the Eagles can spread Brown’s $43.45 million in dead money out. Same total, just accounted for differently. That is a big piece of the delay.
Are there any other big names to watch?
When assessing post-June 1 trade candidates, you’re looking for player contracts that have substantial unaccounted-for bonuses remaining on the deals. One player who falls in this category is Cleveland Browns edge rusher Myles Garrett, who has not attended OTAs this month.
Garrett signed an extension with the Browns last March, and Cleveland has yet to fully account for his $41.09 million signing bonus against the salary cap. If the Browns deal Garrett on or before June 1, they would be on the hook for all of that $41.09 million in dead money in 2026, according to Over the Cap. If they wait until June 2 or later to trade Garrett, they could spread that dead money over 2026 and 2027. The Browns would wear $15.53 million of the dead money in 2026 and the remaining $25.56 million in dead money in 2027.
