Opportunity Cost

[Toruk_Makto]

This is a common misconception.

Restructuring is a bad practice, because the cap charges for future years keep inflating. This only adds to the amount of money that player will cost you if you cut them or keep them.

For example DeMarcus Ware would have counted nothing against us, if he had not been restructured 3 times since his 2008 extension. Now he takes $8.75M of that $133M cap this year.

Funny you call this a misconception when you don't understand the concept or it's utility.

There are a two very important things that happen when you restructure a player.

1) You gain immediate cap relief. Something you completely ignore.

2) You push costs into the future where the relative cost will be smaller (in a rising cap environment). Another thing you completely ignore.

 

[Bluestang]

Funny you call this a misconception when you don't understand the concept or it's utility.

There are a two very important things that happen when you restructure a player.

1) You gain immediate cap relief. Something you completely ignore.

2) You push costs into the future where the relative cost will be smaller (in a rising cap environment). Another thing you completely ignore.

I understand it alright.

1. You push the cap charge your were going to have that year into next's year's.

2. Here is the reality, the cap hasn't gone up a total of 10% these last 4 years. Last year it was 8%, the highest by far. The Cowboys have restructured way more than what the cap his risen.

 

[Toruk_Makto]

I understand it alright.

1. You push the cap charge your were going to have that year into next's year's.

2. Here is the reality, the cap hasn't gone up a total of 10% these last 4 years. Last year it was 8%, the highest by far. The Cowboys have restructured way more than what the cap his risen.

A dollar today is worth more than a dollar tomorrow. And again...immediate relief.

 

[38 Special]

A dollar today is worth more than a dollar tomorrow. And again...immediate relief.

I agree in principle, but if the goal is to win championships and not to sell an 8-8 roster every year, Jones would have kept his powder dry for when the team had the talent to compete. Instead we get band aids and just enough to keep the fans engaged.

 

[Bluestang]

A dollar today is worth more than a dollar tomorrow. And again...immediate relief.

That's if the economy does well, and figuratively speaking it's not.

 

[FuzzyLumpkins]

I did lay out the opportunity cost. I established by overpaying guys like Carr, we were unable to properly field a defense due to lack of cap space left.

The reality is I could have made a longer OP diving into future years, but the point is still the same, and if you take the time to look for yourself, you see that the difference in offensive budget and defensive budget only get more unbalanced as we have to pay our offensive players in the future. Name one defensive player who is looking like they're going to get re-signed to a long term contract above average pay? There aren't any at this point, and it further emphasizes the overpayment to guys like Carr.

No that is a generalized conclusion used in circular reasoning. An actual discussion would mean looking at circumstances had Carr not been signed. That would take into account the cost to replace him and assuming you have extra money how you could have used it with specific examples.

I can make believe that we could sign Linval Joseph -who i wanted- as well as a corner currently making $5m and pretend that poof everything would work out but that entire exercise seems like Story Time with Fuzzy.

You still don't even talk about Mara's $10m and the cap circumstances as they were a few years ago. What I see mostly is you assuming the premise on the basis of generalities. We signed Mincey, Melton and McClain. Let's see how they are going to do and not just give up before it even begins. Mincey had a real nice play on the second defensive play from scrimmage. That quick inside move works.

 

[big dog cowboy]

How do we look on defense? Well only 3 teams in the NFL spend less money on defense than we do...

We haven't signed any big name FA's the last couple of years and we cut Ware so I'm not surprised. We will have salary cap room next year so I would expect that to change.

 

[Bluestang]

We haven't signed any big name FA's the last couple of years and we cut Ware so I'm not surprised. We will have salary cap room next year so I would expect that to change.

The Cowboys are already over the projected cap of $140M for 2015 by $2.2M.

More restructuring will be done because they will only have 51 players with contracts.

 

[Kaiser]

The Cowboys are already over the projected cap of $140M for 2015 by $2.2M.

More restructuring will be done because they will only have 51 players with contracts.

The team saves 7MM if they cut Doug Free, or more likely, force him to take a pay cut.

 

[Kaiser]

Note to the reader: A lot of contracts are backloaded so you have to look at multiple years and contracts to see how things really stack up, but for the sake of argument I wanted to look at this year in a snapshot.

Its a good post and a good thought exercise, but if you even went back two years the team was planning on having Ware, Spencer and Rat taking up a much larger portion of this year's cap room than we see this year. There is less money going to the defense this year but some of that was because of the situations with those three.

 

[Galian Beast]

Its a good post and a good thought exercise, but if you even went back two years the team was planning on having Ware, Spencer and Rat taking up a much larger portion of this year's cap room than we see this year. There is less money going to the defense this year but some of that was because of the situations with those three.

That's a solid argument, except for that plan was part of the problem in the first place.

 

[Galian Beast]

We haven't signed any big name FA's the last couple of years and we cut Ware so I'm not surprised. We will have salary cap room next year so I would expect that to change.

I don't expect it to change much. If you look at next years' cap, the offense explodes in their percentage of the cap.

 

[Galian Beast]

No that is a generalized conclusion used in circular reasoning. An actual discussion would mean looking at circumstances had Carr not been signed. That would take into account the cost to replace him and assuming you have extra money how you could have used it with specific examples.

I can make believe that we could sign Linval Joseph -who i wanted- as well as a corner currently making $5m and pretend that poof everything would work out but that entire exercise seems like Story Time with Fuzzy.

You still don't even talk about Mara's $10m and the cap circumstances as they were a few years ago. What I see mostly is you assuming the premise on the basis of generalities. We signed Mincey, Melton and McClain. Let's see how they are going to do and not just give up before it even begins. Mincey had a real nice play on the second defensive play from scrimmage. That quick inside move works.

It is generalities, because you don't need to talk about specific players, rather that we would have had additional cap space to sign better players, rather than tying up money in Carr. And it doesn't just got to Carr not being signed, it also pertains to him being retained and retained at his current cap hit.


The 10 million is entirely irrelevant.

 

[FuzzyLumpkins]

It is generalities, because you don't need to talk about specific players, rather that we would have had additional cap space to sign better players, rather than tying up money in Carr. And it doesn't just got to Carr not being signed, it also pertains to him being retained and retained at his current cap hit.


The 10 million is entirely irrelevant.

lol $10m is irrelevant? I am done discussing this with you. You are either not serious or something else but either way there is no point.

 

[FuzzyLumpkins]

The Cowboys are already over the projected cap of $140M for 2015 by $2.2M.

More restructuring will be done because they will only have 51 players with contracts.

That's it for next year? Nice.

 

[FuzzyLumpkins]

With the new CBA the cap started out at $120M in 2011, then went to $120.6M in 2012, and $123M in 2013. This year it jumped to $133M.

The restructures that we had to do to get under those cap figures the last 3 years, have created about 66% of that dead money figure we have now this year.

Those increased cap charges are at a higher rate than what the cap is increasing.

Thing about dead money is it is all accelerated and is gone the next year. Like I said, the controls the owners had on the revenues designated for the CBA split are gone and all manner of TV and web money is due. If we are at -$2.2m, we will be well under the cap and won't 'have' to do anything. Factor in the $10m we had to compensate for 2 years ago, i think we are just fine.

Dez and Murray will be easy to fit and we can make moves to be aggressive if we want or we can just let it ride. We likely won't have to restructure Romo given these circumstances.

 

[Galian Beast]

lol $10m is irrelevant? I am done discussing this with you. You are either not serious or something else but either way there is no point.

The 10 million is irrelevant because it was a fixed cost, there was nothing to team could do about it.

 

[Corso]

HA HA HAAAAAA!!!!
http://i160.***BLOCKED***/albums/t166/Spinningfox/Internet%20Fads/Spanish%20Inquisition/SpanishInquisition.gif

 

[85Cowboy85]

The NFL salary cap could hit 160 million by 2016: http://profootballtalk.nbcsports.com/2014/03/07/cap-could-hit-160-million-in-2016/

If they want to move some money forward next year to open up some room they are easily capable of doing so. It depends on how things go this year as to whether they will or not.

 

[Bluestang]

Thing about dead money is it is all accelerated and is gone the next year. Like I said, the controls the owners had on the revenues designated for the CBA split are gone and all manner of TV and web money is due. If we are at -$2.2m, we will be well under the cap and won't 'have' to do anything. Factor in the $10m we had to compensate for 2 years ago, i think we are just fine.

Dez and Murray will be easy to fit and we can make moves to be aggressive if we want or we can just let it ride. We likely won't have to restructure Romo given these circumstances.

The dead money for 2015 is already factored in that $142.2M top 51 salary cap estimate. Fuzzy we have to restructure no matter what to get under if the cap is indeed $140M.

Not all dead money comes off the books, Austin's remaining dead money will be there because he was June 1 cut. Orton's $2M will be there too.

Right now we are looking at about $7.5M in dead money for 2015.

Dez has no contract right now, but the carryover for this year into next year would be any free cap space we have at the end of this league year.