Breakdown on Romo contract - really 4 for 65.5

[fortdick]

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

That explains it. My condolences.

 

[Marktui]

We could be like the Bengals and have loads of salary cap space and try and not sign players and also let their good players walk because they want to much money to stay.

 

[FuzzyLumpkins]

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.

Next year, we can get upwards of $30m in space cutting Free, Bernadeau and Livings while restructuring Carr, Witten and Romo. Those are all pretty easy choices. If you are going to try and talk numbers then at least know what type of numbers we are dealing with.

 

[FuzzyLumpkins]

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.

Teams go by previous contracts in deciding values of deals. They don't go by how much other teams have to spend. You always hear: Flacco's deal sets the market. You don't hear: the Ravens cap room sets the market.

 

[Wood]

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

I think anyway you cut it....Dallas is looking at 15M dead money hit but as was pointed out...Dallas can spread that out over two years 7.5M each year. Its not much more than what they had to do for Salary Cap penalty of 5M over last two years.

But for me the far bigger question is that Dallas is absolutely locked into Romo for atleast the next 3 years and we still have no idea if he is playoff/championship QB. That contract he signed is Super Bowl winning QB type contract. If Romo fails to lead them into the playoffs over next three years or cost them a game in playoffs this will go down as Jerry biggest failure and probably create his exit from the team as GM.

 

[gimmesix]

I think anyway you cut it....Dallas is looking at 15M dead money hit but as was pointed out...Dallas can spread that out over two years 7.5M each year. Its not much more than what they had to do for Salary Cap penalty of 5M over last two years.

But for me the far bigger question is that Dallas is absolutely locked into Romo for atleast the next 3 years and we still have no idea if he is playoff/championship QB. That contract he signed is Super Bowl winning QB type contract. If Romo fails to lead them into the playoffs over next three years or cost them a game in playoffs this will go down as Jerry biggest failure and probably create his exit from the team as GM.

You're doing some wishing there.

 

[Fla Cowpoke]

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

Even if they renegotiate in 2014 and 2015, it's still likely a 4 year deal. From Blue Fin Tuna:


Archer talks about the team being able to restructure Romo's new deal in 2014 and 2015 in order to create cap room. Right now, those are the two largest cap hits in the contract.

Also note the final two years of the deal contain no signing bonus money right now (bonuses can only be spread over 5 years in the new CBA).

Those years will be used for bonus money pro-rations if the team does restructure the deal in '14 and '15 (which seems likely, IMO).

Dallas can create $10M in room in '14, dropping Romo's cap number to $11.733M, and the team can create $10.3M in room in '15, dropping Tony's cap number to $14.973M.

If all this happens, Romo won't have a $20M cap number until 2016, when it would be $20.835M under this scenario ('16 is also when the cap ceiling should start growing again).

And the Cowboys would still be able to release Romo, should the need arise, as early as '16 using the June 1 designation and save money ($8.5M in '16 and $5.1M in '17).

So I don't see any downside to the extension or restructuring the next two seasons.

Here's Romo's cap hits if the team restructures the deal in '14 and '15 to create cap space.

'13: $1.5M base, $5M SB('13), $5.318M SB(old) = $11.818M
'14: $1M base, $2.5M SB('14), $5M SB('13), $3.273M SB (old) = $11.773M
'15: $1M base, $3.2M SB('15), $2.5M SB('14), $5M SB ('13), $3.273M SB (old) = $14.973M
'16: $8.5M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13), $1.635M SB (old) =$20.835M
'17: $14M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13) = $24.7M
'18: 19.5M base, $3.2M SB('15), $2.5M SB('14) = $25.2M
'19: 20.5M base, $3.2M SB('15) = $23.7M

The bold area I am not sure about....I don't think they can cut him till after the 2016 season. If they cut him in 2016, it would be 3.2m + 2.5m + 5M + 1.635m from the 2016 and 1/2 the remaining bonuses from 2017-19 which is 3.2m + 2.5m + 5m + 3.2m + 2.5m + 3.2m/2, or 9.8m. That totals 22.135m, which is more that the 20.83m hit in 2016.

 

[Nightman]

Even if they renegotiate in 2014 and 2015, it's still likely a 4 year deal. From Blue Fin Tuna:


Archer talks about the team being able to restructure Romo's new deal in 2014 and 2015 in order to create cap room. Right now, those are the two largest cap hits in the contract.

Also note the final two years of the deal contain no signing bonus money right now (bonuses can only be spread over 5 years in the new CBA).

Those years will be used for bonus money pro-rations if the team does restructure the deal in '14 and '15 (which seems likely, IMO).

Dallas can create $10M in room in '14, dropping Romo's cap number to $11.733M, and the team can create $10.3M in room in '15, dropping Tony's cap number to $14.973M.

If all this happens, Romo won't have a $20M cap number until 2016, when it would be $20.835M under this scenario ('16 is also when the cap ceiling should start growing again).

And the Cowboys would still be able to release Romo, should the need arise, as early as '16 using the June 1 designation and save money ($8.5M in '16 and $5.1M in '17).

So I don't see any downside to the extension or restructuring the next two seasons.

Here's Romo's cap hits if the team restructures the deal in '14 and '15 to create cap space.

'13: $1.5M base, $5M SB('13), $5.318M SB(old) = $11.818M
'14: $1M base, $2.5M SB('14), $5M SB('13), $3.273M SB (old) = $11.773M
'15: $1M base, $3.2M SB('15), $2.5M SB('14), $5M SB ('13), $3.273M SB (old) = $14.973M
'16: $8.5M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13), $1.635M SB (old) =$20.835M
'17: $14M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13) = $24.7M
'18: 19.5M base, $3.2M SB('15), $2.5M SB('14) = $25.2M
'19: 20.5M base, $3.2M SB('15) = $23.7M

The bold area I am not sure about....I don't think they can cut him till after the 2016 season. If they cut him in 2016, it would be 3.2m + 2.5m + 5M + 1.635m from the 2016 and 1/2 the remaining bonuses from 2017-19 which is 3.2m + 2.5m + 5m + 3.2m + 2.5m + 3.2m/2, or 9.8m. That totals 22.135m, which is more that the 20.83m hit in 2016.

Good break down. I agree that he is def here thru 2016 and most likely thru 2017. There's still a good chance his 2016 number gets knocked down and the dead money for 2017 will be pretty high. I see it as "last contract" for Romo, that keeps him here until he retires. If there is a year which they are well under the cap, they may just eat a big cap hit to get it out of the way.

 

[CyberB0b]

Any time Dallas has absolutely wanted to make a move it made a move.

A couple of years ago, we were supposed to have no cap space and Dallas was suddenly about to sign Nnamdi Asomugha to a big deal (glad that didn't work out).

Last year, as you stated, we added a high-priced corner and several other free agents.

Dallas has not been in cap hell since the earliest parts of free agency. It has been manipulating the cap ever since, working and reworking contracts to absorb dead money and open up space when it wants to.

The example this year is how it went about opening up space. It restructured contracts to absorb the penalty hit and get under the cap. Then it restructured deals to tag Spencer, re-sign Ladouceur and Sims. Then when it decided to add a couple of FAs, it made more moves to sign Durant and Allen on the cheap.

Now, I don't know if the Cowboys pressed forward with the Romo deal because it has its eyes on other FA or just because that's how it worked out, but now Dallas is $5 million out of "cap hell" and might not even spend it. (That's not counting the $2 million they get in June for cutting Spears.)

We aren't in cap hell, but we have guys like Ratliff, Austin, and Free who we can't cut, because it would cost too much in dead money, due to restructuring. That is the downside to always extending to get around the cap.

 

[Kaika]

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.

Thanx Man. Great breakdown.

 

[Echo9]

We aren't in cap hell, but we have guys like Ratliff, Austin, and Free who we can't cut, because it would cost too much in dead money, due to restructuring. That is the downside to always extending to get around the cap.

While you do have a point concerning Free. Ratliff and Austin are both valuable parts of this team. Ratliff played very well when healthy last year and the switch to a 4-3 will help him. Expectations were set too high with Austin, but he's still a damn good WR. Dead money or not, we weren't cutting either of those guys.

 

[Randy White]

of ill-informed people in this thread that are criticizing the front office for a contract that would keep the Cowboys in " cap hell " for a long time.

OBVIOUSLY, those people weren't paying attention to what was happening during the CBA negotiations and it's outcome, so here's a key phrase that they need to learn:

" Teams must spend at least 89% of the cap from 2013-2016 and 2017-2020. "


The salary cap in 2013 is approx 123 millions, give or take a mill. That means the Dallas Cowboys, and the other 31 teams in the NFL, must spend A MINIMUM of roughly 109-110 millions in salaries for the 2013 season.

With a maximum case scenario of being roughly 13 millions under the cap entering the season, that would mean MOST, if not all, teams will be in your definition of " cap hell " for as long as the CBA is in place.

That is if they want to compete of course.

On the other hand, the Dallas Cowboys can decide to make all you accountant wannabe's happy and have a cap friendly team that doesn't sign their best players to long term contracts, doesn't try to bring in talent it thinks can help to win, and develop a reputation that players want to stay away from..

Somehow, I doubt that last part is going to happen.

 

[Alexander]

doesn't try to bring in talent it thinks can help to win, and develop a reputation that players want to stay away from..

I have never understood this idea.

There are very few clubs in the NFL that have developed this type of reputation for being impossibly cheap that free agents stay away. Dallas, despite our spending pattern, is no more attractive to a potential free agent than any other place.

What attracts free agents is getting above market value and sometimes a chance to win a Super Bowl. I do not see many players lining up to take below market deals for mediocre teams.

 

[CyberB0b]

While you do have a point concerning Free. Ratliff and Austin are both valuable parts of this team. Ratliff played very well when healthy last year and the switch to a 4-3 will help him. Expectations were set too high with Austin, but he's still a damn good WR. Dead money or not, we weren't cutting either of those guys.

Ratliff and Austin's play and health have declined sharply in the last 2 years and they aren't getting any younger. I wouldn't have cut them this season, but they will be approaching Free status if they have another poor year. They are both locked up until 2017. We will likely extend Ware next year, so add him to the mix. Witten is there, too.

I love all of the players I have listed, but the FO can't fall in love with players. If they don't produce to their contract, they should be replaced. Having a guy who costs too much to cut undermines the coach's authority, as well.

We also have to look at guys like Lee, Carter, and Murray, who will most likely get big, long term extensions a few times in their careers. You can't operate like this with a stagnant salary cap.

 

[Risen Star]

I don't love any player. I love the laundry and logo. Ratliff and Austin are two vastly overpaid players. Ratliff may be done. He hasn't been good in 3 years. Austin was never very good. That was just an overreaction to half a season by couple of guys who can't evaluate talent. Dez Bryant is a legitimate #1 talent, not Austin. Dez is the guy you give that extension to, not Austin.

 

[Nightman]

I don't love any player. I love the laundry and logo. Ratliff and Austin are two vastly overpaid players. Ratliff may be done. He hasn't been good in 3 years. Austin was never very good. That was just an overreaction to half a season by couple of guys who can't evaluate talent. Dez Bryant is a legitimate #1 talent, not Austin. Dez is the guy you give that extension to, not Austin.

I know you like to say things just to get a reaction, but that is ludicrous.

 

[big dog cowboy]

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

Good luck with that.

 

[Risen Star]

I know you like to say things just to get a reaction, but that is ludicrous.

I don't like to say anything to get a reaction. Miles Austin was never a legit #1 WR talent and shouldn't be paid as such.

 

[Floatyworm]

Even if they renegotiate in 2014 and 2015, it's still likely a 4 year deal. From Blue Fin Tuna:


Archer talks about the team being able to restructure Romo's new deal in 2014 and 2015 in order to create cap room. Right now, those are the two largest cap hits in the contract.

Also note the final two years of the deal contain no signing bonus money right now (bonuses can only be spread over 5 years in the new CBA).

Those years will be used for bonus money pro-rations if the team does restructure the deal in '14 and '15 (which seems likely, IMO).

Dallas can create $10M in room in '14, dropping Romo's cap number to $11.733M, and the team can create $10.3M in room in '15, dropping Tony's cap number to $14.973M.

If all this happens, Romo won't have a $20M cap number until 2016, when it would be $20.835M under this scenario ('16 is also when the cap ceiling should start growing again).

And the Cowboys would still be able to release Romo, should the need arise, as early as '16 using the June 1 designation and save money ($8.5M in '16 and $5.1M in '17).

So I don't see any downside to the extension or restructuring the next two seasons.

Here's Romo's cap hits if the team restructures the deal in '14 and '15 to create cap space.

'13: $1.5M base, $5M SB('13), $5.318M SB(old) = $11.818M
'14: $1M base, $2.5M SB('14), $5M SB('13), $3.273M SB (old) = $11.773M
'15: $1M base, $3.2M SB('15), $2.5M SB('14), $5M SB ('13), $3.273M SB (old) = $14.973M
'16: $8.5M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13), $1.635M SB (old) =$20.835M
'17: $14M base, $3.2M SB('15), $2.5M SB('14), $5M SB('13) = $24.7M
'18: 19.5M base, $3.2M SB('15), $2.5M SB('14) = $25.2M
'19: 20.5M base, $3.2M SB('15) = $23.7M

The bold area I am not sure about....I don't think they can cut him till after the 2016 season. If they cut him in 2016, it would be 3.2m + 2.5m + 5M + 1.635m from the 2016 and 1/2 the remaining bonuses from 2017-19 which is 3.2m + 2.5m + 5m + 3.2m + 2.5m + 3.2m/2, or 9.8m. That totals 22.135m, which is more that the 20.83m hit in 2016.

So what your saying is- It will be OK to cut Romo in 2016 and eat 22 million dollars for just one player?

You think this is a great deal when one player accounts for 1/6th of salary cap space???? And it's all dead money?????

yup.....Jerry is a real master of the salary cap

This is the worst deal in the history of the Cowboys....And it's not even close.

Jerry is gonna bankrupt this franchise.....just like when he started to lose is butt in the oil business-and decided to get out.

Does he even realize he just spent more money on one player than when he bought the entire team back in 1989?

 

[Fla Cowpoke]

Floaty, Floaty, Floaty......

You realize that every team with a top QB not on their rookie contract has to deal with this, right? It's just the marketplace.

Actually, if you look at the numbers, if he was cut in 2016 as a June 1st cut, instead of the 20.835m it would be be 12.335m as dead money, so it saves 8.5m .
In 2017, he would cost 19m in dead money, but that is still a 5m savings. In addition, most folks think that there will be a nice bump in sal cap space in the next couple years.

This is really a worst case scenario by the way....most expect him to last at least until 2017, at which time his dead money hits will be much smaller and more easily handled.

A franchise QB for under 12, under 12, under 15 and then one year of almost 21m is the going rate.

Drew Brees next 4 cap hits: 17.4m, 18.4m, 26.4m, 27.4m. Are the Saints going bankrupt?

Peyton Manning: 20m, 20m, 19m, 19m

ELi Manning: 20.85, 20.4, 19.75

Tom Brady: 13.8, 14.8, 13, 14, 15

Joe Flacco: 6.8, 14.8, 14.55, 28.5, 31.15, 24.750

Big Ben: 13.595, 17.895, 17.395

Schaub: 10.75m, 14.5m, 17, 19

Rivers: 17.11, 15m, 15.75

Try to ignore the facts and the marketplace, and you will see that Romo's deal is completely in line with the top 10 of QB's