The math behind trade/cut Romo

[waldoputty]

We just need to draft another top QB in the 4th round next year.
Then we are all set.

 

[CowboyChris]

Every top QB has huge Dead Money......it is not just DAL.......you either pay 20m a year or you spread it out......it is smarter to spread it out

can you do Dez's contract should we decide to trade him or move on in the offseason

 

[Verdict]

This is to be informational, not siding with either pro/anti Romo (I love the guy). Just wanted to share.

For cap purposes the Cowboys owe $73.6M to Romo over the next 3 years. Whether we cut or trade Romo, we are going to suffer a $19.6M "penalty". That can be accounted for a number of ways. The Cowboys will gain $54M in cap space (net of said penalty) over the next 3 years. That can also be account for in different ways.

As for a TRADE - What it looks like this year is we have already accounted for all of his current cost. If we cut or trade him we will accelerate that $19.6M "penalty" to this year BUT we would be relieved the rest of his salary (~4.6M).

$19.6M penalty - $4.6M salary adjustment = $15M more charged onto this years cap.

According to Sportrac we have $6M in cap space. So trade Romo we would need to conjure up $9M more. Its doable.


Any team that trades for Romo is basically getting him 3 year for $54M with NO GUARANTEED MONEY. Which means they can cut him with no penalties if he underperforms or is injured. He is only owed $14M next year, which would be damn cheap for a team that could be in the Vikings scenario - a bunch of pieces but no QB. Or a HC on the hotseat trying to make a push. The AAV of the salary portion of his contract is like 20th in the league - below the 'Tyrod Taylors' of the league.

Very good post. Great information. I have been saying this but not too many seem to be grasping it. Romo's cap hit is significant for us but not at all to the receiving team.

 

[yimyammer]

I read that if he is cut during the offseason it only gives us about $5 million in extra cap space for next year?
Not sure what is true at this point. Almost every time someone post something it goes into too many details that don't actually answer the question everyone wants to know....
How much cap space does cutting him free up in each of the next 2 season.
How much cap coach does trading him after this season free up for the next 2 season.(each season)

I know it's hard to answer. Just wish instead of getting mumbo jumbo about prorated bonus and cap offsets we could just get the bottom line answers.

Cant answer all your questions but I think I can answer a few

1. NO MATTER WHAT, Dallas has to eat $19.6M in dead money. How it gets burned off depends on when Romo is released or traded

2. The only savings in any year Romo is off the roster is the amount of his base salary

see below:

 

[yimyammer]

After June 1st- cutting or trading him saves 14m in 2017 and 16.3m in 2018

How are you arriving at $16.3M in 2018?

 

[Nightman]

How are you arriving at $16.3M in 2018?

25.2m-8.9m= 16.3m

you have to add the dead money from 2018 and 2019.....that is 8.9m

 

[Nightman]

can you do Dez's contract should we decide to trade him or move on in the offseason

Dez' 13m salary is guaranteed........if we cut him we have to eat that

If traded we would eat 12m in dead money but it would save 5m off the scheduled cap hit of 17m

We won't be cutting or trading Dez but we will restructure his cap number way down

 

[CowboyChris]

Dez' 13m salary is guaranteed........if we cut him we have to eat that

If traded we would eat 12m in dead money but it would save 5m off the scheduled cap hit of 17m

so....its really not an option for Dez (which i don't want gone) but with Romo we could benefit

 

[Jstopper]

If we traded Romo this year we would save 5m...that could be rolled over to 2017 and mitigate his dead money hit of 19.6m down to 14.6m....that would be a 10m savings over his scheduled cap hit of 24.7m

If we trade him next Spring we would save 5m and carry a cap hit of 19.6m

@Bleu Star check this out

 

[Bleu Star]

@Bleu Star check this out

HMMMMM

 

[yimyammer]

25.2m-8.9m= 16.3m

you have to add the dead money from 2018 and 2019.....that is 8.9m

Thanks, you're bringing the remaining $3.2M in structured bonus from 2019 into 2018 right? Is that optional?

 

[Nightman]

Thanks, you're bringing the remaining $3.2M in structured bonus from 2019 into 2018 right? Is that optional?

No, it accelerates with the trade.....you can only spread dead money over the 2 years with a post June 1st move

 

[yimyammer]

No, it accelerates with the trade.....you can only spread dead money over the 2 years with a post June 1st move

Do you know if its prohibited for Romo to give back bonus money and reduce the Cowboys cap hit in the process?

<I'm not trying to start a debate over whether he would or should, I merely want to know if its an option should he choose to do so.>

 

[Nightman]

so....its really not an option for Dez (which i don't want gone) but with Romo we could benefit

DAL would benefit on the cap with both trades......worst case they would both save 5m year one alone.....replacing them is the problem

Someone would trade for Dez even with his 13m guaranteed salary......he is owed 3y/38m with 13m guaranteed after this year......that is less than going rate for a top WR

 

[Nightman]

Do you know if its prohibited for Romo to give back bonus money and reduce the Cowboys cap hit in the process?

<I'm not trying to start a debate over whether he would or should, I merely want to know if its an option should he choose to do so.>

It isn't against the rules of the league but the NFLPA would lose their minds and there is no good reason for him to do it......if he retired DAL could go after the pro-rated portions of his signing bonuses for the remaining years, which is 5m for 2017

 

[Risen Star]

Good thread.

Can you do one for Rayne Prescott? What's the stiff's contract look like and how quickly can we get out of it?

 

[dallasdave]

Good thread.

Can you do one for Rayne Prescott? What's the stiff's contract look like and how quickly can we get out of it?

 

[dallasdave]

Cant answer all your questions but I think I can answer a few

1. NO MATTER WHAT, Dallas has to eat $19.6M in dead money. How it gets burned off depends on when Romo is released or traded

2. The only savings in any year Romo is off the roster is the amount of his base salary

see below:

Wow !!! Great chart.

 

[Nightman]

Good thread.

Can you do one for Rayne Prescott? What's the stiff's contract look like and how quickly can we get out of it?

We owe him 3yr/1.89m with 0 guaranteed.........if we cut him we would take a cap hit of 285k(saving 345k)

We can't extend him until after 2018 but he can make around 300k extra with pay for play bonuses paid by the league

 

[dallasdave]

We owe him 3yr/1.89m with 0 guaranteed.........if we cut him we would take a cap hit of 285k(saving 345k)

We can't extend him until after 2018 but he can make around 300k extra with pay for play bonuses paid by the league

Good info