Breakdown on Romo contract - really 4 for 65.5

[Frozen700]

This post right here. It's amazing people think that simply restructuring all that money to signing bonus, that it just magically goes away. It still has to be paid.

Then cry about it.

 

[gimmesix]

Gimme, do you mean to tell me that you understood that gibberish? The post made no sense! I am still trying to figure out why I will be wishing for 5-11 seasons.

I have a preteen daughter, so I'm fluent in hysterics.

 

[gimmesix]

This post right here. It's amazing people think that simply restructuring all that money to signing bonus, that it just magically goes away. It still has to be paid.

Yes, Romo will get his money. The guaranteed portion only goes away when it's paid. But it's how and when it's paid that makes all the difference.

By converting his base salary next year, it allows Dallas to use that money to take care of other needs (extension, free agents, etc.).

By converting his base salary the following year, it allows Dallas to use that money to take care of other needs (extensions, free agents, etc.).

And when it comes time to collect on those restructurings, the cycle begins again with other restructurings.

There are only a couple of ways the Cowboys can avoid doing business this way:

1) Draft so well that they can replace their stars every four to five years when it's time for them to get new contracts. (Imagine if Stephen McGee had developed like Dallas hoped he would. Then the Cowboys could have traded Romo for picks and moved McGee into the starting role.)

2) Be tightwads and let their stars go anyway.

I'd like to see our front office do a better job with the first one because it would make managing the cap easier. I'm glad our owner doesn't do the second one, that he's willing to juggle the cap to keep his best players ... but it appears that many would rather have the tightwad.

 

[Nightman]

with only 55 million guaranteed and a 25 million signing bonus, we have 30 million left in guaranteed

2013: $1.5 million
2014: $13.5 million
2015: $17 million

32 million so all the guarantees are paid in the first three years, cutting Romo after 2015 will be around a 10 million cap hit saving 5 million so he probably stays the 2016 year and he released after 2016

After 2015 and the restructures that will probably happen in 2014 and 2015, Romo will have around 25m in dead money left. Assuming no restructure in 2016, it will be 15m after 2016. He almost has to play in 2017 to make his exit easy at 6m left.

His actual cap hits
13 11.8m
14 13.7m
15 15.2m 25m dead money after season
16 19.1m 15m dead money after season
17 23m 6m dead money after season

 

[Hoofbite]

It's possible. Considering the price of the position, he'll probably be designated a June 1 cut to split the cost, then we'll restructure a player like Tyron Smith to turn a $12 million base (or something like that) into bonus the first year and Dez Bryant the next, or something like that.

What will make it easier is we'll either draft that year or have drafted a quarterback who will cost hardly anything capwise during those years, if Dallas does it right.

Where it will get more difficult is if Dallas doesn't find a replacement in the draft during Romo's final year or so. Then it will take more creative restructuring to pay for a FA quarterback and Romo.

This contract is clearly set up to restructure 2014 and 2015 for the cap next year, and others' contracts will be set up to be restructured to help when it's time to release Romo.

Restructuring now just to get under the cap with the players they have. Restructuring then just to get under the cap for players they don't have?

I'm sure this is how it might play out but I'm not seeing some sort of benefit in having to restructure significant money every year just to get cap compliant and then ultimately having to restructure in order to cover the dead money left behind by a player who was cut.

 

[DIAF]

Yes, Romo will get his money. The guaranteed portion only goes away when it's paid. But it's how and when it's paid that makes all the difference.

By converting his base salary next year, it allows Dallas to use that money to take care of other needs (extension, free agents, etc.).

By converting his base salary the following year, it allows Dallas to use that money to take care of other needs (extensions, free agents, etc.).

And when it comes time to collect on those restructuring, the cycle begins again with other restructurings.

There are only a couple of ways the Cowboys can avoid doing business this way:

1) Draft so well that they can replace their stars every four to five years when it's time for them to get new contracts.

2) Be tightwads and let their stars go anyway.

I'd like to see our front office do a better job with the first one because it would make managing the cap easier. I'm glad our owner doesn't do the second one, that he's willing to juggle the cap to keep his best players ... but it appears that many would rather have the tightwad.

Well, in order to do #2 and still stay successful, you have to do #1. We don't do #1 very well.

It's easy to say "well, we can just restructure someone else on down the line" and that makes sense when you are talking about 5 or 10 million, but not the 20+ million were are talking about here. That's a whole lot of other deals that will need reconfiguring, and the whole thing goes to hell if a few of them refuse. Eventually the cycle stops and you'll have to eat the dead money. As Cowboy fans, we ought to be pretty familiar with dead money by now.

 

[gimmesix]

I'm sure this is how it might play out but I'm not seeing some sort of benefit in having to restructure significant money every year just to get cap compliant and then ultimately having to restructure in order to cover the dead money left behind by a player who was cut.

It's not just to get cap compliant. Although some of the restructurings cover that, others allow Dallas to do things like tagging Anthony Spencer, or if the Cowboys hadn't done that, going after FAs it wants.

This year, Dallas was $20-plus-million over the cap before free agency started, but had numerous contracts set up for restructuring to not only cover that but free up money for other purposes.

That's the way it works and the way it's going to work, unless Dallas purges the roster some day and sinks with the dead money for a few years while rebuilding through the draft.

I don't see that happening, so I'm fine with rolling with this plan.

 

[gimmesix]

Well, in order to do #2 and still stay successful, you have to do #1. We don't do #1 very well.

It's easy to say "well, we can just restructure someone else on down the line" and that makes sense when you are talking about 5 or 10 million, but not the 20+ million were are talking about here. That's a whole lot of other deals that will need reconfiguring, and the whole thing goes to hell if a few of them refuse. Eventually the cycle stops and you'll have to eat the dead money. As Cowboy fans, we ought to be pretty familiar with dead money by now.

Absorbing $20-plus million over two years (June 1 cut) is not as hard as you seem to think it is. Other contracts created over the next few seasons will have years in it like Romo's where the player(s) receives $10-plus million in base salary. (And it will always make the contracts seem bigger than they are when the guaranteed money is the main thing to look at.)

Dallas is planning these things in advance, knowing what it will need over the next few years to absorb the dead money and still be able to work out extensions and be players in free agency. Romo's base salary will be used for those purposes next year and the year after, and others will be used for those purposes after that.

Obviously, drafting well is the best plan, but teams can't rely on that.

 

[Nightman]

It's not just to get cap compliant. Although some of the restructurings cover that, others allow Dallas to do things like tagging Anthony Spencer, or if the Cowboys hadn't done that, going after FAs it wants.

This year, Dallas was $20-plus-million over the cap before free agency started, but had numerous contracts set up for restructuring to not only cover that but free up money for other purposes.

That's the way it works and the way it's going to work, unless Dallas purges the roster some day and sinks with the dead money for a few years while rebuilding through the draft.

I don't see that happening, so I'm fine with rolling with this plan.

Ware, Witten, Carr, Austin, Ratliff and now Romo and maybe Spencer will all have salaries that can be re-done. They might also be able to carry over 15-20m from this year after Free, Spears, Spencer?, Vickers, Bern and others are dealt with. The cap will eventually be a problem, but it is probably being timed to coincide with Romo's and Ware's departures.

 

[gimmesix]

After 2015 and the restructures that will probably happen in 2014 and 2015, Romo will have around 25m in dead money left. Assuming no restructure in 2016, it will be 15m after 2016. He almost has to play in 2017 to make his exit easy at 6m left.

His actual cap hits
13 11.8m
14 13.7m
15 15.2m 25m dead money after season
16 19.1m 15m dead money after season
17 23m 6m dead money after season

They don't have to have only $6 million left to handle his exit. Again, his exit will be covered by other restructures. It's the circle of life in the NFL.

 

[gimmesix]

Ware, Witten, Carr, Austin, Ratliff and now Romo and maybe Spencer will all have salaries that can be re-done. They might also be able to carry over 15-20m from this year after Free, Spears, Spencer?, Vickers, Bern and others are dealt with. The cap will eventually be a problem, but it is probably being timed to coincide with Romo's and Ware's departures.

I don't think it will be a problem as long as we continue adding players who will need long-term extensions: Smith, Lee, Carter, Bryant, Murray, Claiborne, etc.

The only way it would be a problem is if all those players you mentioned decided to retire all at once. Then there's no way to restructure enough contracts to cover that. (The ideal is that you have no more than a couple leave, get cut, retire in the same season.)

Otherwise, this is just a continuous cycle that will be carried on by the next generation of Cowboys, as long as the salary cap rules don't change.

 

[Nightman]

They don't have to have only $6 million left to handle his exit. Again, his exit will be covered by other restructures. It's the circle of life in the NFL.

It still has to paid. A 15m cap for it a QB not on the team is bad business regardless of restructures. A 6m cap hit that can be spread over 2 years is much better and it is why I expect him to play thru the 2017 season. Everyone calling it a 3 year deal are mistaken in my opinion.

 

[gimmesix]

It still has to paid. A 15m cap for it a QB not on the team is bad business regardless of restructures. A 6m cap hit that can be spread over 2 years is much better and it is why I expect him to play thru the 2017 season. Everyone calling it a 3 year deal are mistaken in my opinion.

It is bad business in the sense that Dallas has to pay it because it didn't draft a cheaper replacement.

It's the way of doing business if that doesn't happen (unless you are cheap and willing to take your chances with whomever you can get for cheap). You are going to take a hit. Controlling how and when you take that hit is the next-best thing you can do, and Dallas does that well.

And no, I don't think he'll play through 2017, and if he is still starting then, it will be under a different contract because this one isn't set up to be viable that long.

This contract is set up for Dallas to take that heavy hit a few years from now (likely when it is set up to not take any other heavy hits at that time), but it is also set up for Dallas to be able to move some money around to its benefit over the next couple of years.

 

[TwentyOne]

... You do realize that we had plenty of cap room last year, right? We signed 1 big FA deal and a couple mid-level ones... And carried like 5M over... All with a 5M penalty???


????

We did not have plenty of cap room. If we had we would have been able to sign a good player to help out at Guard or Center. So we were only able to plug a whole at CB.

Dallas had $17 mills of cap space in 2012. That seems to be alot but it is not. Why ? Because you have to put it in relation with other teams and their cap space.

Here's a source: http://nflfootballnow.com/2012/02/14/salarycap12/

Take a look especially at teams who competed in 2011 already and what kind of money they are able to spend. If you want to pay for a player it's not the amount of money you have. It's the amount of money you have in relation to others who are interessted in that player also.

 

[TwentyOne]

Derrrrrrr....how was that argument

Very sharp from you. It was not.

I decided it's not worth to post further arguments until you start giving one.

 

[PJTHEDOORS]

OMG

You have got to be kidding me

I take it you think Jerry learned his lesson from the early 2000's???

Let's just say....People are gonna wish for 5-11 seasons of hope after this is over.

I expect the year 2020 to see the light of day after this year.

Hopefully Jerry will be gone and the new ownership will reign.

New ownership? I'm guessing Stephen will take over operations when Jerry is gone. If that's what you call new ownership.

 

[PJTHEDOORS]

I know that it's you're not your, so I guess that's your first clue.

Too funny, and he's calling others a moron. That was classic.

 

[TheFinisher]

We're going to have to restructure his base numbers for at least 2014 and 2015. We're already nearly $30MM over the cap for 2014 and that $21MM cap number for Romo will be the first thing the FO looks to chop. Same thing with 2015, we only have 21 players under contract for that year and are already $10MM over the projected cap number. He has a $25MM cap number for 2015 with a $17MM base.

We will push another $20MM in dead money into his contract from 2016-2019. This is NOT a 3 year extension, he'll be playing for us at least until 2018.

 

[Zekeats]

Here’s the breakdown of Romo’s contract, not including the $25 million signing bonus:

2013: $1.5 million base salary, $11.818 million cap figure
2014: $13.5 million base salary, $21.773 million cap figure
2015: $17 million base salary, $25.273 million cap figure
2016: $8.5 million base salary, $15.135 million cap figure
2017: $14 million base salary, $19 million cap figure
2018: $19.5 million base salary, cap figure
2019: $20.5 million base salary, cap figure

With the high cap figures in 2014-15, the Cowboys can lower Romo’s base salaries to the league minimum and turn the difference into signing bonus. Such a move in 2014 could save the Cowboys $10 million in cap space but add $2.5 million to the cap figures in each of the remaining years.

In the first three years of the deal, Romo will make $57 million for a $19 million average. In the first four years of the deal, he will make $65.5 for a $16.38 average.

Without seeing the specific language, Romo was able to do well in the first three years and the team was able to do well over the first four years. Both sides would call that a win-win deal.

http://espn.go.com/blog/dallas/cowboys/post/_/id/4707104/breaking-down-tony-romos-contract


The last few years are fluff. When we get to 2016, he will have 5M left in bonus money and will be 37 years old. Much better contract when you actually know the details.

It will look a lot different after they "renegotiate" every single offseason to free up cap space.

 

[Doomsay]

This post right here. It's amazing people think that simply restructuring all that money to signing bonus, that it just magically goes away. It still has to be paid.

Yup, and usually the incentive from a player's perspective during these restructurings is an increase in guaranteed money which ultimately increases the aggregate cap hit of an individual player over the lifetime of his playing time with the team and beyond.