Bailey is currently on the books for $2.37 million of dead money.
It’s possible Bailey’s release is part of the resolution of his grievance. If not and Bailey wins the grievance, his $2.?? guaranteed salary will be added to his dead money figure. Obviously, if Bailey loses his grievance, his dead cap number will not change.
There would be offsets if Baileys guarantees are restored by winning his grievance. Whatever salary Bailey earns from another team in 2023 would offset the guarantee dollar for dollar and give the Pats a salary cap credit for that amount in 2024.
If the grievance has not been settled, I suspect the reason Bailey is being released now is to maximize his 2023 earning potential in hopes a good part or all of the 2023 guarantees would be offset if he should win his grievance.