Tua Tagovailoa’s recent concussion has sparked questions regarding the contract extension he signed with the Miami Dolphins last offseason, though the team reportedly included an important insurance policy in the deal.
In July, Tagovailoa signed a 4-year, $212.4 million extension with the Dolphins, which features $167.1 million in guaranteed money. If he is not cleared by doctors after last week’s concussion, he would receive the full guaranteed amount.
So far, Tagovailoa has been paid $43 million for 2024. If he were to retire after being cleared medically, he would forfeit the remaining $124 million. However, if he’s deemed unable to play, he would still receive payments. This wouldn’t all come from the Dolphins, as they have an insurance policy covering up to $49.3 million of his guaranteed money if he is not cleared.
While a full recovery is the only real focus here, in response to questions regarding Tua Tagovailoa's contract:
The deal includes $167M guaranteed for injury, $43M of which has been paid in 2024.
If he's medically cleared to return to football, but opts to retire, he will…
— Spotrac (@spotrac) September 13, 2024
Mike Florio from Pro Football Talk noted that the Dolphins had the option to secure this insurance. The policy ensures full coverage for any football-related injury sustained between signing the contract and the beginning of the 2025 offseason program. After that point, the maximum payout decreases to $36.975 million and continues to decline each year.
Per source with knowledge of the #Dolphins contract with Tua, the team has insurance that would cover up to $49.3M of the $167.1M that is guaranteed for injury.
— Jason_OTC (@Jason_OTC) September 13, 2024
While the policy isn’t specifically for concussions, it likely reflects the Dolphins’ concerns given Tagovailoa’s history of head injuries, including multiple concussions last season and at least one in college.
Currently, it seems Tagovailoa is focused on obtaining medical clearance, despite advice from many in the NFL community suggesting he should consider retirement.
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