Romo CAP hit

[Alexander]

lol, I understand that part.....my point of contention is with him retiring why release a player that is retiring?

Jerry is the GM of the Dallas Cowboys not GM of Tony Romo....if it benefits theteam for him to retire, why follow retirement with a release?

But Romo is the boss of Jerry Jones. This is doing right by Romo.

 

[ksg811]

If we split the hit up over 2 years can't we theoretically roll leftover cap money from this year into 2018? Essentially erasing the 2018 hit

Yes, it provides the most flexibility. Opens up more cash this year to make any necessary moves which may include signing a big(ish) name who gets cut in camp, signing replacements for injuries, etc. Any cap space not used this year, rolls over into next year's cap and essentially offsets the dead money.

For instance, there is 8.9 million in dead cap next year from designating Romo as a post 6/1 cut. If the Cowboys end the season with 5 million in cap space, that 5 million is rolled into next year's cap, essentially bringing Romo's dead cap hit down to 3.9 million.

 

[Alexander]

Richard Sherman

Please stop.

There is no "big move" that comes with the release.

 

[Nightman]

Yes, it provides the most flexibility. Opens up more cash this year to make any necessary moves which may include signing a big(ish) name who gets cut in camp, signing replacements for injuries, etc. Any cap space not used this year, rolls over into next year's cap and essentially offsets the dead money.

For instance, there is 8.9 million in dead cap next year from designating Romo as a post 6/1 cut. If the Cowboys end the season with 5 million in cap space, that 5 million is rolled into next year's cap, essentially bringing Romo's dead cap hit down to 3.9 million.

Right now with Romo and Free retired DAL stands at 19.4m under the cap(they can't use 14m of that until June 2nd)

they need 1.8m for the draftees, 1m for the practice squad

that leaves plenty of space and a cushion to make a trade or make a big signing and still have carry over for next year

and that is still leaving Witten, Dez and TCawford with 18m in potential cap space

 

[ksg811]

Right now with Romo and Free retired DAL stands at 19.4m under the cap(they can't use 14m of that until June 2nd)

they need 1.8m for the draftees, 1m for the practice squad

that leaves plenty of space and a cushion to make a trade or make a big signing and still have carry over for next year

and that is still leaving Witten, Dez and TCawford with 18m in potential cap space

I wouldn't touch anyone else with a restructure. Crawford needs to go ASAP so pushing money forward only hurts that. Dez has enough prorated money the next 2 seasons already and Witten is non-guaranteed after this year, that's a big benefit. They have more than enough room as it stands now. No need to kick the can down the road.

 

[Nightman]

I wouldn't touch anyone else with a restructure. Crawford needs to go ASAP so pushing money forward only hurts that. Dez has enough prorated money the next 2 seasons already and Witten is non-guaranteed after this year, that's a big benefit. They have more than enough room as it stands now. No need to kick the can down the road.

restructures don't have any effect on future moves but that is a different argument

all the money just ends up in one giant pot and is not assigned to any one player

 

[TheFinisher]

Finally someone gets it

But at least we have access to it this year if we need it

Exactly, I think we all knew we would eventually have to pay the piper on backloading his contract via restructuring those few years, but with Dak falling into our laps on a 4th Round Rookie contract it couldn't have worked out any better for us IMO. Yeah, we were tight against the cap during free agency and I think that probably played a factor in letting as many DBs walk as we did... but they were also all guys we were OK with letting go on an individual case-by-case. The cumulative exodus brings uncertainty and that can create some uneasiness, but none of those guys were irreplaceable.

If that's the worst cap-management ramification we suffer due to his early contract termination, we should consider ourselves extremely fortunate.

 

[TheFinisher]

I wouldn't touch anyone else with a restructure. Crawford needs to go ASAP so pushing money forward only hurts that. Dez has enough prorated money the next 2 seasons already and Witten is non-guaranteed after this year, that's a big benefit. They have more than enough room as it stands now. No need to kick the can down the road.

We're gonna be in really good shape cap wise 2018-onward

 

[ksg811]

restructures don't have any effect on future moves but that is a different argument

all the money just ends up in one giant pot and is not assigned to any one player

Of course they do. Restructures are assigned to the individual players' cap hits, not a "giant pot" as you call it. How do you think Romo's cap got up to $25 million on an $18 million aav contract? It's because they restructured him every other year.

When you restructure a player, you take the current year cap savings and spread over the rest of the contract, impacting that player's future cap hits.

 

[ksg811]

We're gonna be in really good shape cap wise 2018-onward

Exactly! Which is why we shouldn't hamper that with restructures, especially since cap space for this year isn't that big of need now thanks to Romo's $14 million.

 

[haleyrules]

So, if he retired why did the team have to release him? Isn't that the equivalent of executing a dead person?

He hasn"t officially retired and now he doesn"t have too. He is released and now can do what he wants.

 

[Nightman]

Of course they do. Restructures are assigned to the individual players' cap hits, not a "giant pot" as you call it. How do you think Romo's cap got up to $25 million on an $18 million aav contract? It's because they restructured him every other year.

When you restructure a player, you take the current year cap savings and spread over the rest of the contract, impacting that player's future cap hits.

nah

 

[Longboysfan]

You will also have Collins coming up as an RFA and depending on his play this year you may not want to low ball him on his offer for next year.

 

[JoeKing]

If Romo had filed his retirement papers while still on the Cowboys’ roster, he would have cost the club $19.6 million toward their salary cap in 2017. By releasing him prior to retirement, the Cowboys can split that charge over the next two seasons. He will now cost $10.7 million against the salary cap in 2017 and $8.9 million in 2018.

The June 1 designation will save the Cowboys $14 million this year – though those funds won’t become available until June 2.

 

[iceberg]

We gonna be players next offseason (God willing)!

we're hopefully extending dak, martin, frederick and collins.

i *do* hope we can pick up a player or two of note that will help our D, but any money we free up is going to be paying the line and QB we now have likely.

 

[Trouty]

we're hopefully extending dak, martin, frederick and collins.

i *do* hope we can pick up a player or two of note that will help our D, but any money we free up is going to be paying the line and QB we now have likely.

I just want one guy, Iceberg, one name (that McClay and Vital scout accurately) on D next offseason. Definitely not before Martin is signed.

Fredbeard was already signed, my brother, and we have a ways to go before extending Dak. Collins is a toss up, do you put 40-45mil aav on the Oline, alone? Wanna see a full season from the youngster (Collins), Iceberg.

 

[big dog cowboy]

With Romo a June 1st retirement and Martin signed to a 5th year option of 9m.......DAL should be 30m under the cap for 2018 with 46 players under contract

That will make for a very interesting and much different off season next year.

 

[gimmesix]

Of course they do. Restructures are assigned to the individual players' cap hits, not a "giant pot" as you call it. How do you think Romo's cap got up to $25 million on an $18 million aav contract? It's because they restructured him every other year.

When you restructure a player, you take the current year cap savings and spread over the rest of the contract, impacting that player's future cap hits.

Usually, the team backloads heavy base salaries on the contracts. That way even though more guaranteed money is pushed down the road, the money coming off the books actually opens up space.

For instance, with Romo we take a $19.6 million dead cap hit with him retiring this year, but that's still $5 million less than he would have made so it opens $5 million in space. With Dallas designating him a June release, it opens up even more while you also remove nearly $14 million in base from next year's numbers and around $17 million in base the following year.

This was money that was counted toward Dallas' cap each year so we have that much more to spend. Gone are the days when the team takes a dead cap hit that exceeds the cap space it gains. Overall, your still losing total money you could spend, but not at the cost of being able to do business.

 

[AdamJT13]

Of course they do. Restructures are assigned to the individual players' cap hits, not a "giant pot" as you call it. How do you think Romo's cap got up to $25 million on an $18 million aav contract? It's because they restructured him every other year.

When you restructure a player, you take the current year cap savings and spread over the rest of the contract, impacting that player's future cap hits.

I'm sure you meant "the current year cap hit," not "savings," but your mistake also shows why you're wrong. Once the money is paid (or guaranteed), it all gets charged against the cap. The only difference is when it gets charged. From the day Romo signed his contract in 2013 until now, we've paid him roughly $79 million. If we had never restructured his base salary at all. His dead money this season would be $5 million (and $0 next season), compared with $10.7 million this season and $8.9 million as it is -- a difference of $14.6 million. But without the restructures, that $14.6 million would have been already charged against our cap in 2014, 2015 and 2016. Cap room carries over from year to year, so instead of carrying over the amounts that we did, we would have had to have restructured OTHER contracts or would have had to structure OTHER contracts differently just to get to the cap room we currently have. Without Romo's restructures creating more cap room in 2014 and 2015, we would have had -- you guessed it -- $14.6 million less cap room going into this offseason unless we had made OTHER cap-saving movies.

The difference between many fans and the people who actually make decisions in the NFL is that the people who actually restructure contracts and decide whether to release players realize that previous restructures provided previous cap savings, while many fans simply obsess over the future cap hits. So instead of thinking about -- for example -- Romo's dead money total of $19.6 million, they realize that the additional $14.6 million in dead money is a net wash with the $14.6 million of cap room already saved. The same applies to any other player. Previous restructures don't affect the decision whether to keep or cut -- it's all about avoiding paying out more money.

 

[PhillyCowboysFan]

Injuries, trades, backup QB.....c'mon man use your imagination

Ah yes! I did not use my imagination.

Thank you for the nuggets!