CFZ Let's clear up some misconceptions about Elliott's contract

[Sydla]

Lots of threads about what to do with Elliott so let's at least talk about his contract and the implications.

Elliott is under contract through 2026 (italics indicate prorated items).

• 2023 - Base Salary $10.9 million + Signing Bonus $1.5 million + Option $2.6 million + Restructure $1.7 million = CAP HIT $16.7 million
• 2024 - Base Salary $10.0 million + Option Bonus $2.6 million + Restructure $1.7 million = CAP HIT $14.3 million
• 2025 - Base Salary $15.4 million + Restructure $1.7 million = CAP HIT $17.1 million
• 2026 - Base Salary $16.6 million = CAP HIT $16.6 million

All numbers in italics have to be accounted for at some point - either in the year schedule or advanced into another time frame if cut.

Now a few comments:

One, the Cowboys owe Elliott nothing but his base salary of $10.9 million this year. That's it. There were some saying that he gets like $5 million over his base if cut but that's not true. The only new money owed to Elliott is the base for 2023.

Two, if you cut him right now, you technically do save $10.9 million in base salary (against the cap) but in reality, you only save around $4.9 million against the cap. Why? Because in cutting him now, you have to advance all that future prorated crap into this year. So math wise:

• 2023 CAP HIT $16.7 million - Base Salary of $10.9 million + 2024 Option $2.6 million + 2024 Restructure $1.7 million + 2025 Restrucure $1.7 million = NEW CAP HIT of $11.8 million (or the "dead cap" number).

Subtract the original 2023 cap hit from the new cap hit and there is your cap savings for 2023 = $4.9 million.

The math changes slightly if you make him a June 1 cut because it allows you to spread the dead money over two years. Essentially a June 1 cut would result in the cap savings equaling the $10.9 million base salary and then all the prorated stuff gets split between 2023 and 2024. Basically all the prorated stuff for 2023 is charged in 2023 and then all the remaining prorated stuff is a cap hit in 2024.

Now as it comes down to how to deal with Elliott, there are two thought processes here. One is, just get him off the books and not have to deal with him anymore. Two is, maximize the cap savings THIS YEAR if you want free up as much cap space pre-June 1 to sign a quality free agent. One is just a cut and then determine if you need that $4.9 million savings NOW or you can wait (and move some other contracts around) to pocket the $10.9 million after June 1.

*** Another myth - a June 1 cut means the team still has to carry Elliott's contract on its' books until June 1. You can't cut him now, call him a June 1 cut and get his $10.9 million savings now. Elliott's contract has to be on our books until June 1 and we have to be cap compliant up until that point ***

Now if you are looking for maximum cap savings at the start of FA, getting him to take a massive pay cut is the best option. Because in a pay cut, you don't change the structure of the prorated stuff. It still is charged against the cap in those future years according to the schedule above. The only thing that changes is the base salary and that's a direct savings against the cap. So if you cut his base from $10.9 million to $2 million, that's a direct savings now of $8.9 million.

 

[TwistedL0g1k]

Great post!

I wish everyone understood this so well.

Elliott's contract just looks worse and worse. I hope management learned their lesson, but I fear not!

 

[Jipper]

He could play for the vet min and I’d still move on to a young guy. Zeke is slow and good as a pass protector or a short yardage guy but that’s it.

 

[LatinMind]

Lots of threads about what to do with Elliott so let's at least talk about his contract and the implications.

Elliott is under contract through 2026 (italics indicate prorated items).

• 2023 - Base Salary $10.9 million + Signing Bonus $1.5 million + Option $2.6 million + Restructure $1.7 million = CAP HIT $16.7 million
• 2024 - Base Salary $10.0 million + Option Bonus $2.6 million + Restructure $1.7 million = CAP HIT $14.3 million
• 2025 - Base Salary $15.4 million + Restructure $1.7 million = CAP HIT $17.1 million
• 2026 - Base Salary $16.6 million = CAP HIT $16.6 million

All numbers in italics have to be accounted for at some point - either in the year schedule or advanced into another time frame if cut.

Now a few comments:

One, the Cowboys owe Elliott nothing but his base salary of $10.9 million this year. That's it. There were some saying that he gets like $5 million over his base if cut but that's not true. The only new money owed to Elliott is the base for 2023.

Two, if you cut him right now, you technically do save $10.9 million in base salary (against the cap) but in reality, you only save around $4.9 million against the cap. Why? Because in cutting him now, you have to advance all that future prorated crap into this year. So math wise:

• 2023 CAP HIT $16.7 million - Base Salary of $10.9 million + 2024 Option $2.6 million + 2024 Restructure $1.7 million + 2025 Restrucure $1.7 million = NEW CAP HIT of $11.8 million (or the "dead cap" number).

Subtract the original 2023 cap hit from the new cap hit and there is your cap savings for 2023 = $4.9 million.

The math changes slightly if you make him a June 1 cut because it allows you to spread the dead money over two years. Essentially a June 1 cut would result in the cap savings equaling the $10.9 million base salary and then all the prorated stuff gets split between 2023 and 2024. Basically all the prorated stuff for 2023 is charged in 2023 and then all the remaining prorated stuff is a cap hit in 2024.

Now as it comes down to how to deal with Elliott, there are two thought processes here. One is, just get him off the books and not have to deal with him anymore. Two is, maximize the cap savings THIS YEAR if you want free up as much cap space pre-June 1 to sign a quality free agent. One is just a cut and then determine if you need that $4.9 million savings NOW or you can wait (and move some other contracts around) to pocket the $10.9 million after June 1.

*** Another myth - a June 1 cut means the team still has to carry Elliott's contract on its' books until June 1. You can't cut him now, call him a June 1 cut and get his $10.9 million savings now. Elliott's contract has to be on our books until June 1 and we have to be cap compliant up until that point ***

Now if you are looking for maximum cap savings at the start of FA, getting him to take a massive pay cut is the best option. Because in a pay cut, you don't change the structure of the prorated stuff. It still is charged against the cap in those future years according to the schedule above. The only thing that changes is the base salary and that's a direct savings against the cap. So if you cut his base from $10.9 million to $2 million, that's a direct savings now of $8.9 million.

People think yeah they save 5mil, no you pay 11mil to get rid of him. And pile on the money you pay his replacement.

Paycut is the best option for the team.

Lol I asked somebody earlier is 6mil worth 800 yards and 12 tds. He said any rb in the draft can do that. Only 5 rbs in the nfl got 12 or more. And did with more carries except for ekler

 

[Risen Star]

And I'll still say we need to choose on field over cap savings. You don't want Zeke on the roster next year because he will waste 10-15 touches a game. If he's there they will use him and he's got little left in his legs.

Cap savings be damned. He has to go.

 

[big dog cowboy]

He could play for the vet min and I’d still move on to a young guy. Zeke is slow and good as a pass protector or a short yardage guy but that’s it.

Exactly. Restructure doesn't work for me at all. We would get more production from a drafted rookie in the 3rd or 4th.

This isn't a issue about Zeke's deal. It's a issue of his roster spot. Because I don't think he deserves one.

Just draft a back and make Zeke June 1st cut. That is what's best for both the roster and salary cap.

 

[Sydla]

Exactly. Restructure doesn't work for me at all. We would get more production from a drafted rookie in the 3rd or 4th.

This isn't a issue about Zeke's deal. It's a issue of his roster spot. Because I don't think he deserves one.

Just draft a back and make Zeke June 1st cut. That is what's best for both the roster and salary cap.

We should distinguish between a restructure and a pay cut. They aren't the same thing for those who might be confused (not saying you).

A pay cut is just an agreed upon cut in base salary under the current contract terms.

A restructure is an accounting trick where a team converts base salary to a bonus, pays the player that lump sum at start of league year and then the team can spread the accounting sum of that payment over multiple years using league rules on how to account for bonuses.

A pay cut for Elliott isn't the worst thing in the world (I'd still cut him personally). A restructure would be downright idiotic.

 

[buybuydandavis]

Two, if you cut him right now, you technically do save $10.9 million in base salary (against the cap) but in reality, you only save around $4.9 million against the cap.

Dead money is dead. It's not resurrected by keeping Zeke for another year. All you can do with dead money is kick the can down the road. Kicking the can down the road at the cost of throwing good money after bad onto the pile of cumulative payout is just wasting more money.

If we don't keep Zeke this year, we save the 10.9mil salary we don't pay him in cumulative future cap hit. You save money you don't spend.

If we want to push cap hit from this year into the future, we should kick the cap hit down the road of players we plan to keep this year.

 

[Rockport]

And I'll still say we need to choose on field over cap savings. You don't want Zeke on the roster next year because he will waste 10-15 touches a game. If he's there they will use him and he's got little left in his legs.

Cap savings be damned. He has to go.

He’s probably gone.

 

[fivetwos]

Another important aspect of that contract….this is the first year the salary wasn’t guaranteed 18 months in advance.

The team had to decide each March if the option for the season AFTER the upcoming one would not be picked up, all with the upcoming one already guaranteed.

For functional purposes it made him basically uncuttable until now.

 

[fivetwos]

And I'll still say we need to choose on field over cap savings. You don't want Zeke on the roster next year because he will waste 10-15 touches a game. If he's there they will use him and he's got little left in his legs.

Cap savings be damned. He has to go.

Yep….I don’t want him back for free.

I also don’t wish to attempt to use dead money as some sort of reasoning. It’s there anyway.

The dude can’t hit holes fast enough anymore. Period.

I think they know he is gone, but Jerry feels like he has to handle it this way. Maybe that’s just my hopeful self at work again.

Talk about a progress stopper.

 

[Motorola]

Lots of threads about what to do with Elliott so let's at least talk about his contract and the implications.

Elliott is under contract through 2026 (italics indicate prorated items).

• 2023 - Base Salary $10.9 million + Signing Bonus $1.5 million + Option $2.6 million + Restructure $1.7 million = CAP HIT $16.7 million
• 2024 - Base Salary $10.0 million + Option Bonus $2.6 million + Restructure $1.7 million = CAP HIT $14.3 million
• 2025 - Base Salary $15.4 million + Restructure $1.7 million = CAP HIT $17.1 million
• 2026 - Base Salary $16.6 million = CAP HIT $16.6 million

All numbers in italics have to be accounted for at some point - either in the year schedule or advanced into another time frame if cut.

Now a few comments:

One, the Cowboys owe Elliott nothing but his base salary of $10.9 million this year. That's it. There were some saying that he gets like $5 million over his base if cut but that's not true. The only new money owed to Elliott is the base for 2023.

Two, if you cut him right now, you technically do save $10.9 million in base salary (against the cap) but in reality, you only save around $4.9 million against the cap. Why? Because in cutting him now, you have to advance all that future prorated crap into this year. So math wise:

• 2023 CAP HIT $16.7 million - Base Salary of $10.9 million + 2024 Option $2.6 million + 2024 Restructure $1.7 million + 2025 Restrucure $1.7 million = NEW CAP HIT of $11.8 million (or the "dead cap" number).

Subtract the original 2023 cap hit from the new cap hit and there is your cap savings for 2023 = $4.9 million.

The math changes slightly if you make him a June 1 cut because it allows you to spread the dead money over two years. Essentially a June 1 cut would result in the cap savings equaling the $10.9 million base salary and then all the prorated stuff gets split between 2023 and 2024. Basically all the prorated stuff for 2023 is charged in 2023 and then all the remaining prorated stuff is a cap hit in 2024.

Now as it comes down to how to deal with Elliott, there are two thought processes here. One is, just get him off the books and not have to deal with him anymore. Two is, maximize the cap savings THIS YEAR if you want free up as much cap space pre-June 1 to sign a quality free agent. One is just a cut and then determine if you need that $4.9 million savings NOW or you can wait (and move some other contracts around) to pocket the $10.9 million after June 1.

*** Another myth - a June 1 cut means the team still has to carry Elliott's contract on its' books until June 1. You can't cut him now, call him a June 1 cut and get his $10.9 million savings now. Elliott's contract has to be on our books until June 1 and we have to be cap compliant up until that point ***

Now if you are looking for maximum cap savings at the start of FA, getting him to take a massive pay cut is the best option. Because in a pay cut, you don't change the structure of the prorated stuff. It still is charged against the cap in those future years according to the schedule above. The only thing that changes is the base salary and that's a direct savings against the cap. So if you cut his base from $10.9 million to $2 million, that's a direct savings now of $8.9 million.

Sydla - appreciable research on your part.
Moving forward... what should the Cowboys do with Elliott for the 2023 season?
A) On the roster with a veteran minimum contract (sweetened a little bit with an incentive or two by Jones & Jones) - BUT -paired with a reduced = situational role in the offense
B) Released outright = Dallas rolls with Pollard (franchise tag), putiing Malik Davis in the grind RB role, plus drafting two guys in rounds 3-5 + signing a couple of promising UDFAs?

 

[Ken]

He could play for the vet min and I’d still move on to a young guy. Zeke is slow and good as a pass protector or a short yardage guy but that’s it.

Exactly. For me...we need to move on period.

If we trot him out there again...definitely another wasted season, imo.

 

[Sydla]

Dead money is dead. It's not resurrected by keeping Zeke for another year. All you can do with dead money is kick the can down the road. Kicking the can down the road at the cost of throwing good money after bad onto the pile of cumulative payout is just wasting more money.

If we don't keep Zeke this year, we save the 10.9mil salary we don't pay him in cumulative future cap hit. You save money you don't spend.

If we want to push cap hit from this year into the future, we should kick the cap hit down the road of players we plan to keep this year.

No one has suggested kicking money into future years. I certainly did not.

The point about his base is just because you save paying him the $10.9 million in base, doesn't mean you suddenly have $10.9 million new cap space. You don't.

 

[Sydla]

Sydla - appreciable research on your part.
Moving forward... what should the Cowboys do with Elliott for the 2023 season?
A) On the roster with a veteran minimum contract (sweetened a little bit with an incentive or two by Jones & Jones) - BUT -paired with a reduced = situational role in the offense
B) Released outright = Dallas rolls with Pollard (franchise tag), putiing Malik Davis in the grind RB role, plus drafting two guys in rounds 3-5 + signing a couple of promising UDFAs?

I am in the just cut him and move on. Yes, you don't save as much in actual cap space for 2023 by cutting his base salary (pre June 1), but as others have noted, the other component here is his being on the roster means he'll get used, probably moreso than he should.

To me, just thank him for his service and rip off the bandaid and cut him.

 

[Risen Star]

Yep….I don’t want him back for free.

I also don’t wish to attempt to use dead money as some sort of reasoning. It’s there anyway.

The dude can’t hit holes fast enough anymore. Period.

I think they know he is gone, but Jerry feels like he has to handle it this way. Maybe that’s just my hopeful self at work again.

Talk about a progress stopper.

They're dumb enough to keep him.

 

[xwalker]

Two, if you cut him right now, you technically do save $10.9 million in base salary (against the cap) but in reality, you only save around $4.9 million against the cap.

The part in bold has absolutely no bearing in the team's decision to keep or cut him.

They save 10.9M by cutting him. It does not matter if the savings are spead out over 2 years.

Example 1: Zeke post June 1st cut

Current Cap Hit:​	16.7​
Post June 1 Cap Hit:​	5.8​
Savings:​	10.9​

Example 2: Zeke pre June 1 cut

Current Cap Hit:​	16.7​
Post June 1 Cap Hit:​	11.8​
2023 Savings:​	4.9​
2024 Savings:​	6​

Now restructure Zack Martin to push 6M into 2024.
- In 2024 use the other 6M saved by cutting Zeke to pay for the 6M from restructuring Martin.

Result: 10.9M saved in 2023 and break-even in 2024.

 

[805BoysInBlue]

Great post!

I wish everyone understood this so well.

Elliott's contract just looks worse and worse. I hope management learned their lesson, but I fear not!

If Barndon Carr isn't an example of them learning their lessons I don't know what is. We haven't signed a free agent in the first week of free agency since then.

 

[xwalker]

Dead money is dead. It's not resurrected by keeping Zeke for another year. All you can do with dead money is kick the can down the road. Kicking the can down the road at the cost of throwing good money after bad onto the pile of cumulative payout is just wasting more money.

If we don't keep Zeke this year, we save the 10.9mil salary we don't pay him in cumulative future cap hit. You save money you don't spend.

If we want to push cap hit from this year into the future, we should kick the cap hit down the road of players we plan to keep this year.

 

[sunalsorises]

Pay cut is probably best for the team in terms of cap space. The amount of the pay cut will be determined by Zeke’s value on the open market. He’s not taking a pay cut just to be nice and I suspect he could get more than the vet minimum somewhere else.

The pay cut happens when a team can save money against the cap by paying a player a little over market value but less than the current contract. It becomes a win/win in that the player makes more than he is worth and the team saves money over simply cutting the player.