I just took over a team and the dead cap is so high it's literally impossible to fix. I've done the math and even voiding all the rookie contracts and cutting every other single player won't get this team back under the cap.
http://jwebber.myfootballnow.com/team/32
Total Cap: $138,915,000
Dead Cap: $77,445,684
Room under cap: $-61,164,855
If the dead cap can be wiped out, I can manage it from there.
(or even just reduce the dead cap by the 61mil the team is over the cap.)

Also cross-posted in bug forum: https://jwebber.myfootballnow.com/community/6/4999?page=1#30500

San Francisco 49ers have same problem = https://jwebber.myfootballnow.com/team/21

I took over a team in a similar situation - mainly because I want to see what happens.

A previous owner several seasons prior signed some ridiculous contracts, then the AI kind of blew things the past few seasons. Next season's dead cap is more than the league's cap - so I don't think I can even keep any drafted players.

Also, this team only has 2 players on its roster that was drafted by my team. One player from 3 drafts ago and another from 7 drafts ago. I think the team had to cut all draftees the past 2 years because of the cap.

I'm guessing next season is awash, as it will be a season to eat the dead cap - and in 2 seasons the rebuilding can begin.

Here's the link for the team page:
https://mfn26.myfootballnow.com/team/27

in case your team was controlled by the CPU for 3 seasons that is why it is such a dumpster fire of a mess.