Owner Stephen Ross was noncommittal Friday when asked if Wallace will be back for the third year of a five-year, $60 million contract signed in 2013.
Wallace is untradeable with a salary scheduled to cost $12.1 million against the salary cap. Per The Miami Herald, he is unwilling to accept a pay cut.
If Wallace is cut after June 1, the team will save $6.9 million in cap space while carrying $5.2 million in dead money. Wallace will walk away with $3 million in guarantees regardless.
The decision goes beyond on-field production.
It wasn't until the incident in the season finale that quarterback Ryan Tannehill's feathers were ruffled by Wallace's antics.
Wallace has lost the respect of his teammates. Nominal No. 2 receiver Brian Hartline is scheduled to count $7.35 million against the cap -- a prohibitive number for a player who topped 50 yards just three times in 2014.
Slot receiver Jarvis Landry is an exciting nucleus player, but this team could be in the market for a pair of outside receivers in the coming offseason.