Romo trade vs release implications

[theogt]

money valuations are time sensitive. Money that you have to pay in 2017 is more valuable than money you have to pay in 2018. Always defer money if you can without penalty.

Sure, you always look at cap money as a % of the cap too. So deferring money has some benefit. But it's minimal, and we can work contracts to fully extract any perceived value lost easily. We can't, however, make a draft pick appear out of thin air.

 

[btcutter]

Just saw Romo orchestrate that scoring series on ESPN (sorry..missed this meaningless game). We be stupid if we don't get at least a conditional 2nd rounder for him. I rather keep him than let him go cheap. He has far more value to us even as an insurance policy. The man can ball!

 

[Wood]

My feelings is that Romo can be traded for at least a 3rd. I can see Denver willing to give that for him.

Seondly, depending on the trade negotiations the team he's going to might be willing to absorb some of the cap hit. Thus lowering his contract impact on the team.

They'll probably release him though. Thus we can spread out his cap hit over two years.

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

 

[ActualCowboysFan]

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

The problem with this is the timeline. Money wouldn't be available till post FA.

 

[AzorAhai]

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

Except that money won't be available until... June 1st. Anyone you are trying to re-sign will be long gone by then. And you still have to be under the cap by the new league year, so other restructures and cuts needed to get under the cap has to be done regardless of designating Romo a June 1st cut.

 

[Wood]

The problem with this is the timeline. Money wouldn't be available till post FA.

can't they take post june 1st cut early. I believe team gets one a year.

 

[Clove]

His money absolutely needs to come off the books. That isn't negotiable.

 

[Nightman]

Here is break-down of trading or releasing Romo. After you get thru it all its clear a release is much more favorable for Cowboys.


1) If Dallas trades Romo - they absorb 19.6 million in signing bonus in 2017. Romo was set to make 24.7 million in 2017 so Cowboys would save 5.1 million if they trade him. I see nothing more than conditional pick for Romo as Dallas will have little leverage as Tony will only accept trade to few Super-Bowl ready teams.

2) If Dallas releases Romo they can spread 19.6 signing bonus over 2 years. 9.8 million would count against cap in 2017 & 2018. Dallas would save 14.9 million in 2017.

When you look at numbers its clear what Dallas should do. The additional 9.8 million in savings by releasing him instead of trading him (14.9 - 5.1) is much more valuable in resigning players or adding FAs vs getting a conditional pick that would carry high risk with Romo health concerns.

you are way off all the way around

releasing him only splits the 19.6m dead money over 2 years....it doesn't eliminate it and they can't use any savings until June 2nd

releasing him tears up a first or second round pick so we can be nice to our new enemies team???? ....we were nice enough to Romo paying him 120m.....that is what the money is for to quote Don Draper

DAL can be patient......they may not get a 2017 draft pick but that is not the ultimate goal......maximizing his value to help the team is......not being fair

 

[ActualCowboysFan]

can't they take post june 1st cut early. I believe team gets one a year.

They can cut him early to help him out but the money wouldn't be available until June.

 

[Nightman]

Sure, you always look at cap money as a % of the cap too. So deferring money has some benefit. But it's minimal, and we can work contracts to fully extract any perceived value lost easily. We can't, however, make a draft pick appear out of thin air.

DAL can keep Romo and still get 40m under the cap......you are right about that

tearing up a high draft pick is ludicrous

 

[ActualCowboysFan]

you are way off all the way around

releasing him only splits the 19.6m dead money over 2 years....it doesn't eliminate it and they can't use any savings until June 2nd

releasing him tears up a first or second round pick so we can be nice to our new enemies team???? ....we were nice enough to Romo paying him 120m.....that is what the money is for to quote Don Draper

DAL can be patient......they may not get a 2017 draft pick but that is not the ultimate goal......maximizing his value to help the team is......not being fair

They aren't going to do anything to help the competition. They do hold some cards here. They're going to reduce their leverage somewhat by trying to send him to his preferred destination, but they still have a trump card in that they can keep him if compensation is not up to expectations.

This is high stakes poker and I appreciate the OPs efforts. Leverage is constantly misunderstood in these situations, Adrian Peterson discussions come to mind, but Dallas is in a strong position and I think today absolutely helped.

 

[Wood]

you are way off all the way around

releasing him only splits the 19.6m dead money over 2 years....it doesn't eliminate it and they can't use any savings until June 2nd

releasing him tears up a first or second round pick so we can be nice to our new enemies team???? ....we were nice enough to Romo paying him 120m.....that is what the money is for to quote Don Draper

DAL can be patient......they may not get a 2017 draft pick but that is not the ultimate goal......maximizing his value to help the team is......not being fair

who said it eliminates it. I said they can spread signing bonus over 2 year.

 

[Doomsdayblitz]

Releasing Romo gives us the best option. We could re-sign at least two of our top FAs, plus sign a decent FA QB, such as Nick Foles or Kirk Cousins. God knows, once Romo is gone, we'll need someone NOT named Sanchez backing up Dak.

 

[Wood]

They aren't going to do anything to help the competition. They do hold some cards here. They're going to reduce their leverage somewhat by trying to send him to his preferred destination, but they still have a trump card in that they can keep him if compensation is not up to expectations.

This is high stakes poker and I appreciate the OPs efforts. Leverage is constantly misunderstood in these situations, Adrian Peterson discussions come to mind, but Dallas is in a strong position and I think today absolutely helped.

I am actually not here to convince anyone. Just wanted to clear up cap implications of releasing vs trading him. Dallas would save $10 million by releasing him vs trading him. That part isn't up for debate. What is up for debate is compensation they might get in trade or how Dallas could utilize savings post June 2nd.

 

[ActualCowboysFan]

Releasing Romo gives us the best option. We could re-sign at least two of our top FAs, plus sign a decent FA QB, such as Nick Foles or Kirk Cousins. God knows, once Romo is gone, we'll need someone NOT named Sanchez backing up Dak.

The money won't be there and Cousins is going to be a top 3 salary in a couple of months.

 

[AtomicDog]

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

Wood, IF what you state is correct about the money ramifications, then yeah releasing Romo would be the way to go. We could have an additional 14.9 in cap room for 2017, which is nice ammo to keep key players and possibly bolster right tackle. We need to build around Dak who is cheap right now. Defensive line will be bolstered in next draft.

 

[reddyuta]

we can get a 3rd rd pick at the minimum,it would be monumentally stupid to just cut him.

 

[Nightman]

I am actually not here to convince anyone. Just wanted to clear up cap implications of releasing vs trading him. Dallas would save $10 million by releasing him vs trading him. That part isn't up for debate. What is up for debate is compensation they might get in trade or how Dallas could utilize savings post June 2nd.

you aren't clearing things up when you say 10m in savings that aren't saved and can't be used

 

[Nightman]

Wood, IF what you state is correct about the money ramifications, then yeah releasing Romo would be the way to go. We could have an additional 14.9 in cap room for 2017, which is nice ammo to keep key players and possibly bolster right tackle. We need to build around Dak who is cheap right now. Defensive line will be bolstered in next draft.

it isn't correct..... the full 24.7m cap hit stays with team until June 1st when all the good players are gone

you get the same 14m in cap space if you trade him after June 1st...gotta be patient unless a team overwhelms us in March with multiple picks

 

[AzorAhai]

Wood, IF what you state is correct about the money ramifications, then yeah releasing Romo would be the way to go. We could have an additional 14.9 in cap room for 2017, which is nice ammo to keep key players and possibly bolster right tackle. We need to build around Dak who is cheap right now. Defensive line will be bolstered in next draft.

It's not correct. That 14+ million wouldn't be available until after June 1st and FA starts on March 9th. It will be slim pickings by the time that 14 million hits.