Zack Martin and opportunity cost

Verdict

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Zack Martin is pretty much universally accepted as one of, if not the top guards in the NFL. But for the sake of argument, we are going to assume that Zack's Martin is the best guard in the NFL and we are going to also assume that from a football playing perspective that everyone wants us to keep him, which is almost universally true.

On the other hand, we have this thing called the salary cap. It's a hard cap that only allows you to spend so many dollars. That means that for every dollar you spend on Zack Martin you CANNOT spend that same dollar on anyone else. So if you pay Martin the biggest bucks in the league as a guard, then someone at another position is going to get slighted on salary.

Guard is not normally a top tier salary position and it's not a position that is normally drafted high. Granted that does seem to be changing, as Nelson was in the top 5 or so picks of this draft. But it isn't a position that on average gets paid as well as many other positions.

If we resign Martin, we are "probably" getting a player who can play out his full contract at a high level. I say probably because if he gets injured and can't return to elite form, a contract like we are hearing about can set this team back significantly in the cap department.

Contracts like this also can cause depth problems. We are finally getting some decent depth and this contract doesn't help that at all.

We could have easily traded Martin for a 1st. In fact we could have probably traded Martin for a first and more. Maybe even as much as a third.

The difference in pay between a first round rookie draft pick and the contract Martin will probably sign will be around $10 million dollars per year difference (times the length of his contract). So a 6 year deal would be a $60 million dollar difference in the total cap hit.

A draft pick is not likely to play at the same level as Martin, as Martin is a perennial pro bowler, but if the draft pick replacement at guard is a first round pick he should theoretically be a top tier guard. (Top 5 to 10 or better).

When you sign a player like this to a mega deal, all of the risk shifts over to the team. When a team signs a guy like this to a mega deal the BEST case scenario is that the player continues to play at a high level, justifies his cap hit, and maybe if the salary cap continues to go up you end up with a slight bargain in the last year or two of his contract. So best case, you get what you expected to get. But the worst case is a train wreck cap hit for an injured player or he underperforma his contract for whatever reason.

Granted I think Martin is a solid person so you minimize the intangible portion of the train wreck, but the injury part can't be under appreciated.
 

Sydla

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You would not have gotten a first round pick and more for an OG slated to make over $13MM a year.

I mean your premise is that it might not be wise to pay an OG all that money but then turn around and claim some team will not only pay him that much money BUT ALSO give up prime picks for him?
 

CapnB

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When you have a future HOF'er in the prime of his career you pay him if you have the ability to pay him. The Cowboys do and so they are going to sign him to an extension. I mentioned yesterday, before the extension the team was going to be 72 mil under the cap next season. They could actually get a contract worked out with D-Law as well if they wanted to. Personally, I only see that happening if he puts another a double-digit sack season again. We are in excellent shape salary cap wise. For the first time ever.
 

erod

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It's not a hard cap. The salary cap is a virtual myth. You can manipulate it in any fashion you want, pulling money forward or pushing it back, to fit anybody on the roster your heart desires.

The cap is a built-in excuse for owners to keep player salaries down artificially in the "name of competitive balance". I don't disagree with that sentiment because we've watched Major League Baseball become a joke because of the lack of a cap. Each owner receives about $250 million apiece from the TV contracts. That's more than enough to run their entire organization's fiscal budget. Then, they can keep every dollar they earn otherwise from their advertising deals, tickets sales, parking fees, concessions, jersey sales, etc.

Owners are making well over $100 million a year clear.

Zack Martin will be the highest paid guard in NFL history for about 15 minutes. Three years from now, he'll be a bargain just like Tyron and Frederick.

I also think Stephen is done with the big contracts for offensive skill guys. I'd bet Zeke will be lucky to get paid again here (he's gonna be fat and slow in 3-4 years). They HOPE they have to pay Dak. I think the plan is to put the money at QB and up front on offense and defense, then just rotate through the draft for the other positions. I think that's a good plan in general, other than than those truly special guys you identify along the way.
 

CowboyStar88

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It's not a hard cap. The salary cap is a virtual myth. You can manipulate it in any fashion you want, pulling money forward or pushing it back, to fit anybody on the roster your heart desires.

The cap is a built-in excuse for owners to keep player salaries down artificially in the "name of competitive balance". I don't disagree with that sentiment because we've watched Major League Baseball become a joke because of the lack of a cap. Each owner receives about $250 million apiece from the TV contracts. That's more than enough to run their entire organization's fiscal budget. Then, they can keep every dollar they earn otherwise from their advertising deals, tickets sales, parking fees, concessions, jersey sales, etc.

Owners are making well over $100 million a year clear.

Zack Martin will be the highest paid guard in NFL history for about 15 minutes. Three years from now, he'll be a bargain just like Tyron and Frederick.

I also think Stephen is done with the big contracts for offensive skill guys. I'd bet Zeke will be lucky to get paid again here (he's gonna be fat and slow in 3-4 years). They HOPE they have to pay Dak. I think the plan is to put the money at QB and up front on offense and defense, then just rotate through the draft for the other positions. I think that's a good plan in general, other than than those truly special guys you identify along the way.


Huh? Based on what exactly? There was just a quote I read by the OC that said Zeke was one of the hardest workers in the team. That doesn’t go along with your “feeling” erod.
 

tm1119

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Really does seem like the fans on this board are anti spending $ on elsewhere. The “we like our guys” mentality has gone crazy. Like it’s easy to just draft/sign udfa’s to replace virtually anyone.

Inflation is an idea that seems to be completely over most people’s heads as well. Nfl salaries don’t stay stagnant, there is always going to be a new highest paid guy. Seems like everyone wants to compare contracts that are signed now to what guys got paid like 5 years ago.
 

gimmesix

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Contracts like this also can cause depth problems. We are finally getting some decent depth and this contract doesn't help that at all.

Contracts like this are built to help depth problems. I don't know what Martin's year-by-year breakdown will ultimately be, but before this deal, he was set to make $9.3 million this year. If the Cowboys needed cap space, then it's likely his first-year hit of a new contract would be structured to open up cap room. (For example, when Travis Frederick signed his deal, he had a first-year cap hit of $2.1 million.) If the Cowboys need cap space next year or the year after that, etc., Martin's contract will be structured in a way that it can be restructured to create room.

The only problem big contracts really cause is that one day you have to take a dead cap hit, but then if you're doing it right, either other contracts are structured so that cap space is created to absorb the hit or by the time you cut the player, the hit is less than the savings. (For example, cutting Dez Bryant saved $8.5 million in cap space.)
 

Bobhaze

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I think we have become overly paranoid about the team spending money on players.
Well Av, when was the last time this team did an “outstanding job” of managing their talent and cap space? The “paranoia” may be there based on history.
 

Galian Beast

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Zack Martin is pretty much universally accepted as one of, if not the top guards in the NFL. But for the sake of argument, we are going to assume that Zack's Martin is the best guard in the NFL and we are going to also assume that from a football playing perspective that everyone wants us to keep him, which is almost universally true.

On the other hand, we have this thing called the salary cap. It's a hard cap that only allows you to spend so many dollars. That means that for every dollar you spend on Zack Martin you CANNOT spend that same dollar on anyone else. So if you pay Martin the biggest bucks in the league as a guard, then someone at another position is going to get slighted on salary.

Guard is not normally a top tier salary position and it's not a position that is normally drafted high. Granted that does seem to be changing, as Nelson was in the top 5 or so picks of this draft. But it isn't a position that on average gets paid as well as many other positions.

If we resign Martin, we are "probably" getting a player who can play out his full contract at a high level. I say probably because if he gets injured and can't return to elite form, a contract like we are hearing about can set this team back significantly in the cap department.

Contracts like this also can cause depth problems. We are finally getting some decent depth and this contract doesn't help that at all.

We could have easily traded Martin for a 1st. In fact we could have probably traded Martin for a first and more. Maybe even as much as a third.

The difference in pay between a first round rookie draft pick and the contract Martin will probably sign will be around $10 million dollars per year difference (times the length of his contract). So a 6 year deal would be a $60 million dollar difference in the total cap hit.

A draft pick is not likely to play at the same level as Martin, as Martin is a perennial pro bowler, but if the draft pick replacement at guard is a first round pick he should theoretically be a top tier guard. (Top 5 to 10 or better).

When you sign a player like this to a mega deal, all of the risk shifts over to the team. When a team signs a guy like this to a mega deal the BEST case scenario is that the player continues to play at a high level, justifies his cap hit, and maybe if the salary cap continues to go up you end up with a slight bargain in the last year or two of his contract. So best case, you get what you expected to get. But the worst case is a train wreck cap hit for an injured player or he underperforma his contract for whatever reason.

Granted I think Martin is a solid person so you minimize the intangible portion of the train wreck, but the injury part can't be under appreciated.

Most people don't understand the concept of opportunity cost. Nice post.
 

Doomsday101

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It was a couple of months ago people were going crazy because we weren't spending money. :huh:

I agree. If Dallas is going to spend money then doing so on a perennial all pro is not a bad start. Dallas has avoided over paying on FA on the market and have gone with more of a sure thing like Frederick, Tyron Smith and Martin who fit what Dallas wants to do. Thankfully contracts are not all hitting at once and are spread out so that Dallas can work these contracts to free up cash
 

Jipper

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I think we have become overly paranoid about the team spending money on players.

There is so much truth to this I can't even describe it....the fact of the matter is we have gone from a team that over pays for FAs and gives bad second contracts to middle of the road draft picks. ....to a team that drafts well and focuses on only giving fair second contracts to players that have earned it...


That's why dlaw was tagged, that's why we let guys walk and get overpaid elsewhere....and the reality is when you are drafting well you are able to execute this strategy....if we start having years where we only get 1 or 2 players that are still on the team 3 years later then we will be right back at the same problem.


Draft well

Pay guys are your core well...if they have shown they can play well at a high sustained levwl...

Use FA to augment and help with depth...
 

AsthmaField

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When you draft a guy and he becomes the best at his position in football and a perennial all-pro... you re-sign him, period.

Martin is a huge plus on the field. A huge plus in the locker room. A hard worker, young, and very likely the most coveted interior OL in football.

It would have been the pinnacle of lunacy to let homegrown takent like that walk away... particularly when he is not even really in his prime yet.

Ian Rappoport called this signing a “no brainer” by the Cowboys. That’s because nobody in the NFL would have let Zack go.
 

Swanny

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He plays a position you pay for. I would always go cheap on RBs and WRs to makeup for big money contracts to the oline and QB
 

blueblood70

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Martin is our most important OL IMO. Our running game didn’t become dominating until he arrived.
I like martin but it is and was for us, very apperent ,LT TS is the position that on most teams THE coveted linemen.. of course we should sign him and he most likely worth it but from my perspective you can hide Gs between better players see Cooper etc But LT and even RT can be left alone on an island with no help..
 
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