Cap hit if Romo retires

[Sarek]

Yes, money saved against the cap over the length of his contract that has not been accounted will be charged to next years cap.......that amount is 19.6m.....his cap charge if he plays is 24.7m that is where the 5.1m in savings come from if he retires......24.7m-19.6m = 5.1m

there is a way to split the 19.6m in dead money over 2017 and 2018 but Romo has to be released or retire after June 1st of next year......

That 49 million is not dead money and is not owed to Romo. It will free up that much cap space for the Cowboys if Romo retires right now minus the money that was previously restructured that is owed to him.

Thanks, i'm getting there.

 

[Nightman]

Romo basically signed a 4yr/68m extension after 2013......that is 17m a year.....instead of charging 17m against the cap over 4 years, they spread out the hit over 6 years at a lower amount early in the deal when the cap was much lower

2013- 12m- original contract
2014- 12m
2015- 15m
2016- 21m
2017- 11m* if retired
2018- 9m* if retired

 

[Bluefin]

This thread made my understanding of the situation worse i think.

If Romo wasn't on the team next season/year how much money in player salary towards the team cap for next season would the Cowboys free up, and how much would be owed to Romo?

If Tony Romo retires or gets released next year, the Dallas Cowboys wouldn't owe the QB any money.

As @bkight13 said, the 2017-19 base salaries in Romo's contract are not guaranteed.

That's $54M in cash savings over those three seasons.

While Romo's base salaries would not count against the salary cap, the remaining pro-rated signing bonus would.

This is money that was paid in the past but counts in small, equal portions over a 5 year period so long as the player remains under contract (a $10M signing bonus will count $2M per season for 5 years).

If the contract is terminated early, be it retirement, release or trade, the remaining signing bonus money will all come due. Depending on the timing of the move, all of the bonus money (often referred to as dead money) may hit in one season or it may be spread over two.

2017: $14,000,000 base salary, $10,700,000 yearly signing bonus proration, $24,700,000 salary cap number, $19,600,000 potential dead money (entire remaining signing bonus proration), $5,100,000 potential salary cap savings (the difference between the dead money and Romo's cap number)

2018: $19,500,000 base salary, $5,700,000 yearly signing bonus proration, $25,200,000 salary cap number, $8,900,000 potential dead money, $16,300,000 potential salary cap savings

2019: $20,500,000 base salary, $3,200,000 yearly signing bonus proration, $23,700,000 salary cap number, $3,200,000 potential dead money, $20,500,000 potential cap savings

 

[Sarek]

If Tony Romo retires or gets released next year, the Dallas Cowboys wouldn't owe the QB any money.

As @bkight13 said, the 2017-19 base salaries in Romo's contract are not guaranteed.

That's $54M in cash savings over those three seasons.

While Romo's base salaries would not count against the salary cap, the remaining pro-rated signing bonus would.

This is money that was paid in the past but counts in small, equal portions over a 5 year period so long as the player remains under contract (a $10M signing bonus will count $2M per season for 5 years).

If the contract is terminated early, be it retirement, release or trade, the remaining signing bonus money will all come due. Depending on the timing of the move, all of the bonus money (often referred to as dead money) may hit in one season or it may be spread over two.

2017: $14,000,000 base salary, $10,700,000 yearly signing bonus proration, $24,700,000 salary cap number, $19,600,000 potential dead money (entire remaining signing bonus proration), $5,100,000 potential salary cap savings (the difference between the dead money and Romo's cap number)

2018: $19,500,000 base salary, $5,700,000 yearly signing bonus proration, $25,200,000 salary cap number, $8,900,000 potential dead money, $16,300,000 potential salary cap savings

2019: $20,500,000 base salary, $3,200,000 yearly signing bonus proration, $23,700,000 salary cap number, $3,200,000 potential dead money, $20,500,000 potential cap savings

ok so basically if Romo retired now, he would chew up 19.6M (2017) 8.9M (2018) 3.2M (2019) all towards the cap those years?

 

[willia451]

Bottom line is the dude is done. And the Cowboys still owe him a ton.

Price you pay for having a talented person at the QB position agree to turn their body into a human pretzel for you.

Romo needs to bail before he is in a wheelchair permanent.

But he won't. So we'll see.

 

[waving monkey]

To clarify,

His last contract ran through age 33. What the Cowboys should have done is franchise him for one year and then see, with a strong preference for releasing him unless we won a championship. Instead they signed him to a six-year deal that ran to age 40 and has guaranteed money through the next few years. That was criminal mismanagement, cause by the Jones' overinvestment in Romo, both financially and emotionally.

BS

 

[Bluefin]

ok so basically if Romo retired now, he would chew up 19.6M (2017) 8.9M (2018) 3.2M (2019) all towards the cap those years?

Not quite.

The $19.6M in 2017 represents all the bonus money proration in the contract from 2017 ($10.7M), 2018 ($5.7M) and 2019 ($3.2).

So if Tony Romo is gone next season (which I don't expect), and the team eats all the bonus money at once, he would count $19.6M against the cap and then come off the books in 2018.

If the money gets divided (a team can designate a player to count over to years or any move that happens after May), $10.7M would count in 2017 and $8.9M in 2018 (the regular $5.7M plus the $3.2M that was set for 2019).

This is a link to Romo's contract, it shows how the money is scheduled to count and what will happen if he gets terminated.

 

[Bluefin]

Bottom line is the dude is done. And the Cowboys still owe him a ton.

Dallas doesn't owe Tony Romo a penny beyond this season.

The 2017-19 base salaries ($54M) are not guaranteed and will not be paid unless he's still on the roster.

 

[FuzzyLumpkins]

We haven't been restructuring Romo the past couple of years and can make him a June 1 cut next year if worse come to worst.

A June 1 cut saves us like $13m off the cap.

 

[Proximo]

I don't understand how this thread has more than one response, "LOL."

It's just silly.

It's ashame that the sudden emergence of Dak's surprising potential has to result in a bunch of lame-o fans taking shots at Romo and fantasizing about him retiring. To me, that's not the point.

Dak's potential thrills me because I really believe he could be our QB of the future and in limited action he's looked better running our offense than anyone not named Tony Romo. It's awesome.

Then, there are a bunch of people who are thrilled about Dak because they think his existence will result in Romo being put out to pasture ASAP. I swear there's as much Romo hate on here as there is Dak support. And those two things shouldn't be connected, in my opinion.

 

[Nightman]

We haven't been restructuring Romo the past couple of years and can make him a June 1 cut next year if worse come to worst.

A June 1 cut saves us like $13m off the cap.

This year is the only year we didn't restructure his deal but they planned for that by making his salary only 8.5m this year.......if he plans to stay after this season a full renegotiation and not a restructuring will probably have to occur.....they will have to offer more guaranteed money in exchange for a much lower base salary than 14m

 

[Cowpolk]

This is one we do not have to worry about Romo is not going to retire

 

[Fla Cowpoke]

No one has mentioned it but say Dak has a great year and the Cowboys decide that they are moving forward with him as the starter.

Couldn't Romo take a Doug Free like pay cut that would help the team AND reduce cap effects? Add a couple years onto the current deal. and reduce salaries to say 5m, 5m and 4m over next three years? Guarantee those salaries the first three years. So it looks like this:

Yr..............Salary................Pro Rata..................Cap Hit............Savings over existing
17.............5m......................10.7m.......................15.7.................9m
18.............5m......................5.7m.........................10.7.................14.5m
19.............4m......................3.2m..........................7.2..................16.5m
20.............3m......................0................................3.....................NA

Romo could be that classic vet backup QB like teams used to have and solve that problem for several years. Always felt like he would make a great coach and only having to be available for backup duty would extend his career. As a gym rat, it would keep him in the game.

Cap guys bkight, xwalker and bluefin could tweak this as needed.

If you completely were to cut Romo, you still are likely going to be searching for a vet backup to Dak, so you would still probably be paying someone 2-3m a year at least, might as well make it to Romo.

 

[cowboyuptx]

Romo is not retiring, despite the haters wishes. I'm sickened by the level of disrespect that's being shown to #9! I love what I've seen from Dak thus far, and I'm really excited to see how he does in the regular season... But still, we're getting all hot and bothered over about 6 quarters of PRESEASON football! Dak is nowhere near Romo's level right now! If you're a Dallas fan, then you had better be hoping for Romo to comeback asap! Or have we already forgotten last season? Isn't the team like 16-6 over the past two seasons in games that Romo has started, and aren't we like 1-11 over that span when starting QBs not named Romo?

I'm excited to watch Dak, especially after the terrible old backups we had last season... But I want the Cowboys to win the Super Bowl this season, and I know without any doubt that Romo is our best/only chance of that happening!

This injury is completely unrelated to any of his past injuries, and the likely prognosis suggests that we'll be getting back a 100% healthy version of Tony Romo about halfway through the season... I for one can not wait for Romo to be back under center, regardless of how Dak plays... You Romo haters will look pretty silly when he makes his triumphant return and leads us to the promised land!

Get back soon 9!!!

 

[iceberg]

Romo is not retiring, despite the haters wishes. I'm sickened by the level of disrespect that's being shown to #9! I love what I've seen from Dak thus far, and I'm really excited to see how he does in the regular season... But still, we're getting all hot and bothered over about 6 quarters of PRESEASON football! Dak is nowhere near Romo's level right now! If you're a Dallas fan, then you had better be hoping for Romo to comeback asap! Or have we already forgotten last season? Isn't the team like 16-6 over the past two seasons in games that Romo has started, and aren't we like 1-11 over that span when starting QBs not named Romo?

I'm excited to watch Dak, especially after the terrible old backups we had last season... But I want the Cowboys to win the Super Bowl this season, and I know without any doubt that Romo is our best/only chance of that happening!

This injury is completely unrelated to any of his past injuries, and the likely prognosis suggests that we'll be getting back a 100% healthy version of Tony Romo about halfway through the season... I for one can not wait for Romo to be back under center, regardless of how Dak plays... You Romo haters will look pretty silly when he makes his triumphant return and leads us to the promised land!

Get back soon 9!!!

these are the same haters wanting him gone for a long long time. nothing new to be sick of - just a new face for them to shine their attention on.

i'm a huge romo fan but this is now about the rest of his life, not how i feel about a team playing a game on a field.

unrelated to past injuries? great. so we have a *new* reason for him to be out 1/2 a season. that makes it so much different.

a healthy romo at 100% today isn't a 100% romo of 2-3 years ago. never will be again depsite how much i like the dude and would LOVE to see him win a ring.

all this talk of "leading us to the promised land" - well it's just talk. you gonna feel silly if it *doesn't* happen? no?

then why should they if it does?

whatever romo needs to do for romo i support - outside that, meh. it's a game. he said so himself, right?

 

[BigStar]

A little premature aren't you. Aikman took just as much punishment, his back also led to his retirement, and he has done fine booth work for
years. Romo could do coaching or booth work and I suspect he will do just fine.

Would prevent him from playing his second favorite hobby after retirement (golf). But I see Romo sticking through his contract too regardless of the long term health consequences.

 

[BigStar]

Not to argue but, Broaddus and Mickey from DC.com both said that Aikman's back issues led to him pretty much being a statue who
couldn't move and the hits he took due to lack of mobility led to the concussions. Just repeating their info...

You're correct. Aikman says it was his back; you hear how articulate he is in broadcasts, so it is doubtful that it was due to the concussions.

 

[Nightman]

No one has mentioned it but say Dak has a great year and the Cowboys decide that they are moving forward with him as the starter.

Couldn't Romo take a Doug Free like pay cut that would help the team AND reduce cap effects? Add a couple years onto the current deal. and reduce salaries to say 5m, 5m and 4m over next three years? Guarantee those salaries the first three years. So it looks like this:

Yr..............Salary................Pro Rata..................Cap Hit............Savings over existing
17.............5m......................10.7m.......................15.7.................9m
18.............5m......................5.7m.........................10.7.................14.5m
19.............4m......................3.2m..........................7.2..................16.5m
20.............3m......................0................................3.....................NA

Romo could be that classic vet backup QB like teams used to have and solve that problem for several years. Always felt like he would make a great coach and only having to be available for backup duty would extend his career. As a gym rat, it would keep him in the game.

Cap guys bkight, xwalker and bluefin could tweak this as needed.

If you completely were to cut Romo, you still are likely going to be searching for a vet backup to Dak, so you would still probably be paying someone 2-3m a year at least, might as well make it to Romo.

This is exactly what I briefly mentioned in another Romo thread but you have spelled it out perfectly.....I was only going to guarantee the first 2 years or 10m......the big problem is the perception.......is Tony going to be willing to be the named the QB2 and take 1/3 of what he was due next year....

I can realistically see him playing next year at his current deal of 14m and then going from there.....I think the team won't force the issue until 2018 when his scheduled base salary is 19.5m....if they didn't move on Carr they won't hard sell Romo....they feel he earned this money

 

[PA Cowboy Fan]

You're correct. Aikman says it was his back; you hear how articulate he is in broadcasts, so it is doubtful that it was due to the concussions.

I remember that list hit Aikman got that ended his career wasn't even that bad.

 

[dallasdave]

Romo basically signed a 4yr/68m extension after 2013......that is 17m a year.....instead of charging 17m against the cap over 4 years, they spread out the hit over 6 years at a lower amount early in the deal when the cap was much lower

2013- 12m- original contract
2014- 12m
2015- 15m
2016- 21m
2017- 11m* if retired
2018- 9m* if retired

Lot of money !!!!!