What's the Impact of Romo's Contract If He's Done

[Leadbelly]

Let's say there's a nightmare scenario where Romo breaks the collarbone again in game 3 of the 2016 season. Would you say he's pretty much done? Sounds like Done City to me. But his contract isn't done until 2020.

* * * *

To save a click, here's his Spotrac contract numbers...

2016 $8.5m base (+$5m signing bonus / $1.6m option bonus / $5.7m restruct. bonus)
2017 $14.0m base (+$5m signing bonus / $5.7m restruct. bonus)
2018 $19.5m base (+$5.7m restruct. bonus)
2019 $20.5m base (+$3.2m restruct. bonus)
2020 UFA

FWIW, Spotrac says we'll be 31st in available cap space for 2017 ($126,796,804), 32nd in 2018 ($92,226,192), and 32nd in 2019 ($76,200,000).

* * * *

I imagine the team and Romo's agent structured the deal with a plan for a good landing but another big injury probably puts that plan in jeopardy. For the capologists, how does an early end to his career impact our future salary cap situation?

Looking at the contract above, it looks like retiring prior to 2019 was probably the ideal, but also possible to do it in 2018 if they had to. If they have to do it before the 2017 season, seems like a problem. Are we screwed in that scenario? Are Signing Bonus monies written off in cases of retirement?

The contract has already been backloaded, so I'm not sure Tony and his agent would be inclined to retire and let the team off the hook, but I'm not sure how guaranteed money works in case of retirement.


Future Free Agents...
2017 T Frederick*, T Williams
2018 Z Martin*, D Lawrence, D Irving, A Hitchens, J Witten, L Collins (RFA)
2019 B Jones*, R Gregory, L Collins

* I think there's a 5th year option for first rounders.

 

[Avery]

Well, if he retires, we don't have to eat anything. My guess is that if he were injured and a shell of himself that 2017 would be his last year and he would be cut when his dead money is <$9 mil.

Either way, Kellen Moore and the island of misfit journeymen aren't going to excite Cowboy nation.

 

[dallasdave]

Let's say there's a nightmare scenario where Romo breaks the collarbone again in game 3 of the 2016 season. Would you say he's pretty much done? Sounds like Done City to me. But his contract isn't done until 2020.

* * * *

To save a click, here's his Spotrac contract numbers...

2016 $8.5m base (+$5m signing bonus / $1.6m option bonus / $5.7m restruct. bonus)
2017 $14.0m base (+$5m signing bonus / $5.7m restruct. bonus)
2018 $19.5m base (+$5.7m restruct. bonus)
2019 $20.5m base (+$3.2m restruct. bonus)
2020 UFA

FWIW, Spotrac says we'll be 31st in available cap space for 2017 ($126,796,804), 32nd in 2018 ($92,226,192), and 32nd in 2019 ($76,200,000).

* * * *

I imagine the team and Romo's agent structured the deal with a plan for a good landing but another big injury probably puts that plan in jeopardy. For the capologists, how does an early end to his career impact our future salary cap situation?

Looking at the contract above, it looks like retiring prior to 2019 was probably the ideal, but also possible to do it in 2018 if they had to. If they have to do it before the 2017 season, seems like a problem. Are we screwed in that scenario? Are Signing Bonus monies written off in cases of retirement?

The contract has already been backloaded, so I'm not sure Tony and his agent would be inclined to retire and let the team off the hook, but I'm not sure how guaranteed money works in case of retirement.


Future Free Agents...
2017 T Frederick*, T Williams
2018 Z Martin*, D Lawrence, D Irving, A Hitchens, J Witten, L Collins (RFA)
2019 B Jones*, R Gregory, L Collins

* I think there's a 5th year option for first rounders.

Thanks for the info !!!

 

[Leadbelly]

Well, if he retires, we don't have to eat anything. My guess is that if he were injured and a shell of himself that 2017 would be his last year and he would be cut when his dead money is <$9 mil.

Either way, Kellen Moore and the island of misfit journeymen aren't going to excite Cowboy nation.

Wouldn't it be $19.6 mil (total guaranteed monies in 2017, 2018, and 2019)? Or is this assuming an early June 1 cut and spreading it out over two seasons?

This scenario is he's done after 2016 due to an early, season ending injury. I doubt we'd carry him again for 2017 if he basically hasn't played since 2014 season, but maybe we'd have to.

 

[dallasdave]

Wouldn't it be $19.6 mil (total guaranteed monies in 2017, 2018, and 2019)? Or is this assuming an early June 1 cut and spreading it out over two seasons?

This scenario is he's done after 2016 due to an early, season ending injury. I doubt we'd carry him again for 2017 if he basically hasn't played since 2014 season, but maybe we'd have to.

Yeah, does anyone have how much dead money if Romo would retire ?

 

[BAZ]

FWIW, Spotrac says we'll be 31st in available cap space for 2017 ($126,796,804), 32nd in 2018 ($92,226,192), and 32nd in 2019 ($76,200,000).

Wait, this means Dallas will have the least amount of cap space?

 

[Avery]

Wait, this means Dallas will have the least amount of cap space?

Correct, but those numbers mean nothing this far out as contracts get reworked and turned into guaranteed money.

 

[BAZ]

Correct, but those numbers mean nothing this far out as contracts get reworked and turned into guaranteed money.

Who are all these big numbers? Romo, Dez, Tyron, Lee....besides that who is killing them in 2019?

 

[dallasdave]

I guess what I was asking was if Romo retired now , how much dead money is there ?

 

[Toruk_Makto]

After the 2017 season cutting Romo will be a realistic option that will save money against the cap (assuming no restructures).

We need Romo on the field for the next two seasons at a minimum.

 

[Beast_from_East]

Let's say there's a nightmare scenario where Romo breaks the collarbone again in game 3 of the 2016 season. Would you say he's pretty much done? Sounds like Done City to me. But his contract isn't done until 2020.

* * * *

To save a click, here's his Spotrac contract numbers...

2016 $8.5m base (+$5m signing bonus / $1.6m option bonus / $5.7m restruct. bonus)
2017 $14.0m base (+$5m signing bonus / $5.7m restruct. bonus)
2018 $19.5m base (+$5.7m restruct. bonus)
2019 $20.5m base (+$3.2m restruct. bonus)
2020 UFA

FWIW, Spotrac says we'll be 31st in available cap space for 2017 ($126,796,804), 32nd in 2018 ($92,226,192), and 32nd in 2019 ($76,200,000).

* * * *

I imagine the team and Romo's agent structured the deal with a plan for a good landing but another big injury probably puts that plan in jeopardy. For the capologists, how does an early end to his career impact our future salary cap situation?

Looking at the contract above, it looks like retiring prior to 2019 was probably the ideal, but also possible to do it in 2018 if they had to. If they have to do it before the 2017 season, seems like a problem. Are we screwed in that scenario? Are Signing Bonus monies written off in cases of retirement?

The contract has already been backloaded, so I'm not sure Tony and his agent would be inclined to retire and let the team off the hook, but I'm not sure how guaranteed money works in case of retirement.


Future Free Agents...
2017 T Frederick*, T Williams
2018 Z Martin*, D Lawrence, D Irving, A Hitchens, J Witten, L Collins (RFA)
2019 B Jones*, R Gregory, L Collins

* I think there's a 5th year option for first rounders.

If a player retires, is released, or is traded, the team is not on the hook for the base salary, but the team has to account for any prorated signing bonus and restructure bonus left on the life of the contract. That is why you restructure with guys that are going to be around awhile and only if they are relatively healthy enough to keep playing for awhile. You cant restructure a contract or give a huge signing bonus and have the player retire or trade/release him and not account for that, the league wont let you do that.

So, based on these numbers, there are several scenarios...........

A. Romo retires tomorrow............dead money is $31.9 million

B. Romo retires after this season...........dead money is $19.6 million

C. Romo retires after the 2017 season.........dead money is $8.9 million

D. Romo retires after the 2018 season.........dead money is $3.2 million

E. Romo is a free agent after the 2019 season so of course dead money is zero.

First thing you notice is that Jerry has made Romo a very, very, wealthy man. I am going to start teaching my little girl how to throw a spiral, LOL. Secondly, we cannot afford to get rid of Romo until after the 2017 season, because even though we are eating almost $10 million on the cap, his base salary is almost $20 million so we end up saving about $10 million. If we get rid of Romo any sooner than that, we are actually losing money because the dead money would be higher than the base salary.

Bottom line is that Romo is here for 2 more seasons at a minimum, even if he is sitting on the bench watching.

 

[Nightman]

If a player retires, is released, or is traded, the team is not on the hook for the base salary, but the team has to account for any prorated signing bonus and restructure bonus left on the life of the contract. That is why you restructure with guys that are going to be around awhile and only if they are relatively healthy enough to keep playing for awhile. You cant restructure a contract or give a huge signing bonus and have the player retire or trade/release him and not account for that, the league wont let you do that.

So, based on these numbers, there are several scenarios...........

A. Romo retires tomorrow............dead money is $31.9 million

B. Romo retires after this season...........dead money is $19.6 million

C. Romo retires after the 2017 season.........dead money is $8.9 million

D. Romo retires after the 2018 season.........dead money is $3.2 million

E. Romo is a free agent after the 2019 season so of course dead money is zero.

First thing you notice is that Jerry has made Romo a very, very, wealthy man. I am going to start teaching my little girl how to throw a spiral, LOL. Secondly, we cannot afford to get rid of Romo until after the 2017 season, because even though we are eating almost $10 million on the cap, his base salary is almost $20 million so we end up saving about $10 million. If we get rid of Romo any sooner than that, we are actually losing money because the dead money would be higher than the base salary.

Bottom line is that Romo is here for 2 more seasons at a minimum, even if he is sitting on the bench watching.

That is a great breakdown but if they had to cut him after 2016 the 19m in dead money could be split over 2 years. That would still reduce his 2017 cap hit by 14m.

DAL just has to get thru this year and we need him anyways but is exactly why we should draft Goff or Wentz.

 

[cej757]

That contract is for 2 more years period. No way in hell is Jerry paying the rest of that Base Salary. People need to wake up and smell the coffee about drafting a qb in this draft. 2 more years is not long at all before Romo is gone. I suggest everyone start watching some YouTube highlights of the qb's coming out this year and let's start having a real discussion about who need to draft in the 1st rd.

 

[Hoofbite]

Yeah, does anyone have how much dead money if Romo would retire ?

The same as if he was cut.

 

[Tusan_Homichi]

If a player retires, is released, or is traded, the team is not on the hook for the base salary, but the team has to account for any prorated signing bonus and restructure bonus left on the life of the contract. That is why you restructure with guys that are going to be around awhile and only if they are relatively healthy enough to keep playing for awhile. You cant restructure a contract or give a huge signing bonus and have the player retire or trade/release him and not account for that, the league wont let you do that.

So, based on these numbers, there are several scenarios...........

A. Romo retires tomorrow............dead money is $31.9 million

B. Romo retires after this season...........dead money is $19.6 million

C. Romo retires after the 2017 season.........dead money is $8.9 million

D. Romo retires after the 2018 season.........dead money is $3.2 million

E. Romo is a free agent after the 2019 season so of course dead money is zero.

First thing you notice is that Jerry has made Romo a very, very, wealthy man. I am going to start teaching my little girl how to throw a spiral, LOL. Secondly, we cannot afford to get rid of Romo until after the 2017 season, because even though we are eating almost $10 million on the cap, his base salary is almost $20 million so we end up saving about $10 million. If we get rid of Romo any sooner than that, we are actually losing money because the dead money would be higher than the base salary.

Bottom line is that Romo is here for 2 more seasons at a minimum, even if he is sitting on the bench watching.

And there's nothing wrong with that. If we draft a guy, you can't depend on him to be the backup next year. You'd need a vet for that role. The drafted QB would be the #3 most likely.

The next year? You could move the young guy up to #2 behind Romo.

The year after that? The new guy takes over and Romo's cap hit if we were to cut him loose wouldn't completely cripple us.

 

[csirl]

I think Romo will be a June 1st cut in 2017. Its the least damaging financial option.

 

[ufcrules1]

I think Romo will be a June 1st cut in 2017. Its the least damaging financial option.

I sure hope so.

 

[Longboysfan]

I guess what I was asking was if Romo retired now , how much dead money is there ?

Would Romo be liable for the bonus money to pay back part of it?

 

[Alexander]

I don't know why you are all worried about this.

Stephen Jones is saying that we should just be calm and hope that since Romo has already had his bad luck, he’s going to have about three years, four years of good luck.

 

[Hoofbite]

Would Romo be liable for the bonus money to pay back part of it?

My thoughts.

1. Only if the team sought to recover it.

2. Only the portion of the SB that is attributed to years in which he hadn't played.

Most of his would-be dead money is from all the restructuring he has done and presumably wouldn't be recoverable because it is money that he would have earned in its entirety by playing in those restructured. He has fulfilled his obligation for those amounts.