Romo trade vs release implications

[Cowboys22]

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

The new team doesn't have have to absorb anything except his $14 million salary. There is so much disinformation and rampant speculation by people that don't understand the cap or Dallas' cap positioning going on in this thread that my head is spinning. Cap space is a non issue for Dallas. Like has been stated, they have numerous contracts designed to free up cap space and can easily free up the space to keep Romo, sign their free agents, sign their rookies, and dabble in reasonably priced free agents. The issue comes down to two things. Is Jerry willing to pay Romo $14 million in real money be the backup and can they find a trade partner willing to offer enough to get a deal done. Only if the answer is no on both will he be released.

 

[robjay04]

were talking about two different issues. I brought up the exclusive cap implications of Romo release vs trade. What your referring to is getting under team salary cap (redo other contracts), etc. I have no doubt Dallas can shift money around. Just brought up Dallas saves $10 million by releasing vs trading him. Alot of fans were under this impression that trade was only way to go. When I looked at it...turns out release is probably better for Dallas & Romo.

Oh yeah I agree. I still think the only way we trade him is if we can get salary relief.


If a team offers us a 3rd but we have to eat all of his remaining guarantees, we will probably just cut him for the savings.

 

[robjay04]

easy. If Dallas trades Romo they save 5.1 million (24.7 cap hit (if stays with team) - 19.6 signing bonus acceleration. If Romo gets releases (24.7 cap hit (if stays with team) - 9.8 signing bonus acceleration (half of signing bonus hit) saves team $14.9 million. So 14.9 million (release savings) vs 5.1 million (trade savings) = 9.8 million savings by releasing vs trading him. I rounded it up.

If that's the only scenario, he is going to be cut. 10 million dollars is worth more to a team competing for a Super Bowl thab a mid round pick we will possibly get.

 

[Nightman]

easy. If Dallas trades Romo they save 5.1 million (24.7 cap hit (if stays with team) - 19.6 signing bonus acceleration. If Romo gets releases (24.7 cap hit (if stays with team) - 9.8 signing bonus acceleration (half of signing bonus hit) saves team $14.9 million. So 14.9 million (release savings) vs 5.1 million (trade savings) = 9.8 million savings by releasing vs trading him. I rounded it up.

It isn't half........it is 10.7m in 2017 and 8.9m in 2018........so it would be 8.9m

but as I keep telling you....they get the same savings with a trade after June 1st as a release...... the exact same 8.9m......your whole premise/thread is wrong

 

[Wood]

If that's the only scenario, he is going to be cut. 10 million dollars is worth more to a team competing for a Super Bowl thab a mid round pick we will possibly get.

well thats the big question because it might turn out Dallas can't use that 10 million savings until after June 1st and FA period will be settled by then. I am sure Stephan Jones will find way to use those savings maybe toward contract extensions.

 

[AbeBeta]

I kept reading the numbers, thinking we would actually save money if he was cut (rather than traded). But if I read this correctly, we're not actually saving money. We would just be pushing money into future years. And losing a draft pick. That just seems......stupid.

I think we'll at least get a 3rd round pick. Probably a 2nd. If this were an alternate universe where Dak didn't exist and Tony was on another team, I would definitely trade a 2nd for him.

Plus -and importantly - whatever the money, we can easily move other deals around to create the same space.

The only consideration here is whether Tony is happy where he's going

 

[Kaiser]

The new team doesn't have have to absorb anything except his $14 million salary.

Also a point people keep ignoring is that at a 2017 cap hit of 14 Million next year, Romo will be paid LESS than the average starting QB, not more.

Right now that 14 Million would make him the 23rd highest cap hit among NFL QBs. That number will change because some of the guys ahead of him will be released or restructured, but part of the equation is that Romo's salary is actually a positive for the team trading for him, not a negative.

 

[Wood]

It isn't half........it is 10.7m in 2017 and 8.9m in 2018........so it would be 8.9m

but as I keep telling you....they get the same savings with a trade after June 1st as a release...... the exact same 8.9m......your whole premise/thread is wrong

Your assuming Romo is open to any trade. In your scenario an injury would need to occur to team to wait that long to get their starting QB. Considering Romo has short list of teams (maybe Denver or Arizona only) any trade likely happens before Draft. My premise stands. The conditional pick needs to be more valuable than 9 million savings.

 

[Oh_Canada]

we basically know what teams will offer. It will be 2nd - 4th rounder conditional pick that moves to 5-6th rounder if he gets injured. So your choice is:

Resign:
Leary
Wilcox
Church

or get 5th rounder in draft. That's how this is breaking down.

They'll get more than a fifth, you keep him otherwise.

 

[Oh_Canada]

Your assuming Romo is open to any trade. In your scenario an injury would need to occur to team to wait that long to get their starting QB. Considering Romo has short list of teams (maybe Denver or Arizona only) any trade likely happens before Draft. My premise stands. The conditional pick needs to be more valuable than 9 million savings.

He will be open to it because he will have no choice. The team in return will do right by him, but they will not release him unless they are flat out idiots and last offseason gave me hope they are not.

 

[Wood]

He will be open to it because he will have no choice. The team in return will do right by him, but they will not release him unless they are flat out idiots and last offseason gave me hope they are not.

sorry bud but it doesn't work that way with Jerry. He is loyal to fault and will absolutely protect Romo and not send him to bad team. If Romo were open to any team it would change everything and I would be working phone right now with San Fran. But Tony is special to Jerry and he will handle this with kid gloves.

 

[big dog cowboy]

 

[xwalker]

Here is break-down of trading or releasing Romo. After you get thru it all its clear a release is much more favorable for Cowboys.


1) If Dallas trades Romo - they absorb 19.6 million in signing bonus in 2017. Romo was set to make 24.7 million in 2017 so Cowboys would save 5.1 million if they trade him. I see nothing more than conditional pick for Romo as Dallas will have little leverage as Tony will only accept trade to few Super-Bowl ready teams.

2) If Dallas releases Romo they can spread 19.6 signing bonus over 2 years. 9.8 million would count against cap in 2017 & 2018. Dallas would save 14.9 million in 2017.

When you look at numbers its clear what Dallas should do. The additional 9.8 million in savings by releasing him instead of trading him (14.9 - 5.1) is much more valuable in resigning players or adding FAs vs getting a conditional pick that would carry high risk with Romo health concerns.

When you add together 2017 and 2018 it is a total savings of 14M regardless of trade, pre June 1st cut or post June 1st cut.

The ratio between 2017 and 2018 changes depending on the specifics, but the total savings is 14M.

 

[xwalker]

impossible. Signing bonus can't be renegotiated or traded. Dallas has to absorb 19.6 million one way or another. You either take it all in 2017 (via trade) or you spread it out over 2 years (via release).

That would only matter if they didn't have other contracts that can be restructured. They can free up over 30M by restructuring other contracts.

The dead money number is 19.6M regardless. It does not matter if it hits the cap in 2017 or 2018.

 

[xwalker]

money valuations are time sensitive. Money that you have to pay in 2017 is more valuable than money you have to pay in 2018. Always defer money if you can without penalty.

Not salary cap money, only real money.
Under the cap there is zero interest to defer cap hits into future years.

 

[xwalker]

I created this thread to help clear the confusion. The new team can not absorb his signing bonus and that's the crux of problem. The difference is 10 million in savings by releasing vs trade. I figure Dallas could resign 3 of their own with that money. Then use what ever else they have in cap space to target FA DE.

His signing bonus all stays with the Cowboys if he is traded.

The new team just takes on his base salaries which are not guaranteed.

 

[xwalker]

can't they take post june 1st cut early. I believe team gets one a year.

They can cut a player in the Sping and designate him a June 1st cut; however, the cap saving does not occur until June 1st.

The benefit is that the player can move on and there is no chance he gets injured in offseason workouts causing them to owe him money.

 

[xwalker]

I am actually not here to convince anyone. Just wanted to clear up cap implications of releasing vs trading him. Dallas would save $10 million by releasing him vs trading him. That part isn't up for debate. What is up for debate is compensation they might get in trade or how Dallas could utilize savings post June 2nd.

That is Wrong.

 

[Wood]

That would only matter if they didn't have other contracts that can be restructured. They can free up over 30M by restructuring other contracts.

The dead money number is 19.6M regardless. It does not matter if it hits the cap in 2017 or 2018.

this discussion was not about general team salary cap. It was about savings of releasing or trading romo.

 

[xwalker]

Releasing Romo gives us the best option. We could re-sign at least two of our top FAs, plus sign a decent FA QB, such as Nick Foles or Kirk Cousins. God knows, once Romo is gone, we'll need someone NOT named Sanchez backing up Dak.

Nope, the total cap charges are the same either way.