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Agent's Take: Worst salary caps? Cowboys, Saints, Steelers lead way
By Joel Corry | Former Sports Agent
December 20, 2013 1:39 pm ET
Tony Romo has the NFL's No. 1 cap number for 2014 but the Cowboys have flexibility with his deal. (USATSI)
There isn't any particular method of managing the salary cap. Some teams are more mindful than others of the long-term cap implications of player signings and roster moves. Teams believing they are close to winning the Super Bowl can sometimes cloud judgment. This is when teams are more likely to push the envelope with the cap.
Contract restructures have become standard operating procedure in the NFL, particularly for teams with tight cap situations. In a typical restructuring, a player will convert some portion of his base salary or roster bonus (without reducing salary) into a signing bonus because it can be prorated or spread out evenly over the life of a contract (most other salary components usually can't be prorated) for a maximum of five years. The team gets a lower cap number in the current season while the player gains more short-term security.
For example, Andre Johnson created $4.125 million of cap room for the Houston Texans when he lowered his 2013 cap number from $14,859,043 to $10,734,043 by converting $5.5 million of his $11 million 2013 salary into a signing bonus. As a signing bonus, the Texans were able to prorate this $5.5 million over the four years left on his contract. Johnson's 2014, '15 and '16 cap numbers each increased by $1.375 million with the restructuring.
Cap outlook: Part I
Three teams (Dallas Cowboys, New Orleans Saints and Pittsburgh Steelers) are projected to be at least $10 million over the cap in 2014, which was tentatively set at $126.3 million during an NFL meeting on Dec. 11. The Detroit Lions and San Diego Chargers are also projected to be over the cap by approximately $4.6 million and $450,000.
Included in each team's calculations in order to give a more complete cap picture are the following:
1. Fourth-year proven performance escalators earned by third- through seventh-round picks under the 2011 collective bargaining agreement's rookie wage scale.
2. Tenders for restricted free agents and exclusive-rights players with expiring contracts.
3. Voidable contract years and futures contracts for practice squad players.
In the offseason, only the top 51 cap numbers count on the cap. These projections include 51 players unless noted otherwise. Below are some options for the three teams to become cap compliant when the 2014 league year begins on March 11.
1. Dallas Cowboys
Salary cap overage: $25,084,217
Adjusted salary cap: $127,609,694
It shouldn't be a surprise that the Cowboys have an NFL-high $152.7 million in cap obligations for 2014. The Cowboys are usually at the top of the list for future cap commitments toward the end of each season.
Quarterback Tony Romo has the NFL's largest cap number in 2014 at $21.773 million. The Cowboys built some cap flexibility into the six-year, $108 million contract extension (with $55 million in guarantees) Romo signed during the offseason because the deal gives them the discretionary right to convert a portion of his base salary into signing bonus. Most of the lucrative deals the Cowboys have signed in recent years also contain this clause, which allows them to automatically create cap room. They can add $10.036 million of cap room by converting $12.545 million of Romo's fully guaranteed $13.5 million 2014 base salary into signing bonus. Romo's 2014 cap number would drop to $11.737 million.
The Cowboys can pick up $3.816 million of cap room by restructuring the six-year, $42 million contract extension (worth a maximum of $51 million) that Sean Lee received during the preseason. Brandon Carr's $12.217 million cap number can be lowered to $6.801 million if a voidable 2018 contract year is added for proration purposes in a contract restructuring. Reworking Jason Witten's deal can yield $3.236 million of cap space by also adding a voidable 2018 contract year. The Cowboys will pick up $22.504 million of cap room with these four moves.
The Cowboys may face a difficult choice with DeMarcus Ware, whose best days are behind him. The seven-time Pro Bowl defensive end's cap number is slightly over $16 million next year because he has restructured his contract for three straight years. Ware has been limited to six sacks this season while dealing with quadriceps and back injuries. The last time he didn't reach double-digit sacks was his rookie season. Instead of restructuring Ware's contract again, it may make sense to ask the 31-year-old to reduce his $12.75 million 2014 salary. A $4 million paycut seems reasonable considering 32-year-old Robert Mathis, who leads the NFL with 16½ sacks, is playing under a contract of $9 million per year. Ware could be given the opportunity to earn the money back with not-likely-to-be-earned sack incentives. If Ware is unwilling to accept the paycut, a little less than $7.5 million would be gained by releasing him.
Ware becoming a cap casualty would increase the importance of re-signing defensive linemen Jason Hatcher or Anthony Spencer. Hatcher is having a career year. His nine sacks rank second among NFL interior defensive lineman. The 32-year-old is intent on testing the free-agent market where his age could be a factor. Spencer, who was franchised by the Cowboys for a second time this year, has missed almost all of the season after microfracture surgery. Spencer's knee injury could make him extremely affordable.
The emergence of wide receivers Terrance Williams and Cole Beasley has made Miles Austin's $8,249,400 cap number a luxury. Releasing Austin will only give Dallas slightly less than $400,000 of cap relief unless it waits until after June 1 or uses one of the two post-June 1 designations NFL teams are allowed each year to release players before June 2 with favorable cap treatment. June 1 is significant because the acceleration of bonus proration in future contract years is delayed until the following season for players released after this date. With a post-June 1 designation, the Cowboys would be required to carry Austin's full cap number until June 2 even though he won't be a part of the roster. The Cowboys would pick up $5.5 million of cap room at that time when Austin's 2014 salary comes off the books. The Cowboys would have a $5,106,200 cap charge, or dead money, for Austin in 2015.
Wide receiver Dez Bryant has already stated that he would like a new deal. He has a $2.03 million salary in 2014, the final year of his five-year rookie contract. Bryant is on track to become the first wide receiver in Cowboys history with consecutive seasons of at least 90 catches and 1,200 receiving yards.
Bryant can't use Dallas' cap situation to his advantage by creating significant cap space through an extension since his 2014 cap number is $3,898,500. A new deal is still possible without increasing his 2014 cap number but it would require a large fully guaranteed 2015 base salary where the structure is similar to Carr's deal. The five-year, $50.1 million contract Carr signed in 2012 contained a $3.2 million first-year cap number and a fully guaranteed $14.3 million base salary in the second year. Given that the Cowboys aren't afraid to pay wide receivers near the top of the market (Roy Williams: six-year, $54 million contract extension in 2008), Bryant's next contract could average more than $13 million per year with over $30 million in guarantees.
2. New Orleans Saints
Salary cap overage: $16,653,767
Adjusted salary cap: $126,944,911
The Saints can make significant headway with their cap situation by releasing 32-year-old Will Smith, who is missing the season with a torn ACL. His release will take $11.55 million off the books. Safety Roman Harper was a rumored cap casualty in the offseason and $2.18 million of cap space will be created if the Saints part ways with him before his $650,000 roster bonus is due on the third day of the league year (March 13). An increased role for Khiry Robinson in the Saints' running back rotation could allow for the release of Mark Ingram or Pierre Thomas. The Saints would gain almost $1.4 million from Ingram's departure while letting Thomas go would create $2.9 million of room.
Drew Brees has the largest cap number on the team at $18.4 million. His contract wasn't restructured this year and may be left alone again to avoid increasing his $26.4 million 2015 cap number. Jahri Evans, Ben Grubbs and Marques Colston are candidates to restructure their contracts again because of their 2014 cap numbers -- $11 million, $9.1 million and $8.3 million. If their restructures are similar to this year, the Saints can create around $9 million of cap room collectively.
Retaining Pro Bowl tight end Jimmy Graham will be the Saints' top offseason priority. Using Graham like a wide receiver complicates negotiations for a new deal. Top wide receivers make significantly more money than top tight ends. The New England Patriots' Rob Gronkowski is the NFL's highest-paid tight end with the six-year, $54 million contract extension ($18.17 million in guarantees) he signed last year. Calvin Johnson and Larry Fitzgerald pace the wide receiver market with long-term deals averaging slightly more than $16 million per year containing in excess of $45 million of guaranteed money.
Absent a new deal, the Saints will place a franchise tag on Graham. Expect Graham to file a grievance to be classified as a wide receiver since franchise tags are determined by the position where the player participated in the most plays during the prior season. Graham would gain tremendous leverage in negotiations if he won an arbitration hearing on his franchise-tag position because the wide receiver franchise number will be approximately $11.5 million while the tight end number will be close to $6.7 million.
Pittsburgh may restructure Big Ben's contract due to cap numbers near $19M the next two years. (USATSI)Pittsburgh may restructure Big Ben's contract due to cap numbers near $19M the next two years. (USATSI)
3. Pittsburgh Steelers
Salary cap overage: $10,528,419
Adjusted salary cap: $127,697,097
Pittsburgh's cap is top-heavy. They have five cap numbers over $10 million ($67.13 million total) which account for a little more than half (52.5 percent) of their adjusted salary cap.
Releasing offensive tackle Levi Brown, acquired from the Arizona Cardinals for a conditional 2014 draft choice in Week 5 this season, will create $6.25 million of cap room. Restructuring the contracts of inside linebacker Lawrence Timmons and wide receiver Antonio Brown will free up almost $8 million of cap space combined if their entire 2014 salaries except for their league minimums are converted into signing bonus.
The Steelers might have to make some difficult decisions with mainstays of the defense. Troy Polamalu is no longer in the discussion of the NFL's best safety but he will have the NFL's highest cap number for the position during 2014 at almost $11 million in the final year of a three-year, $29.6 million contract extension. The Steelers will pick up $8.25 million of cap room if he is let go. Ike Taylor is also entering the final year of his contract. The 33-year-old is a bottom-tier cornerback, according to Pro Football Focus' rankings, and $7 million of cap space will be gained with his release. Pay cuts could also be options for both players.
Outside linebacker has always been a high-turnover position for the Steelers. Most recently, James Harrison was released in the offseason when he refused a pay cut. Jarvis Jones was selected 17th overall in the 2013 draft to replace him. He has been relegated to backup duty because of Jason Worilds' breakout season in his contract year. Worilds leads the Steelers with seven sacks.
Re-signing Worilds probably means the end of LaMarr Woodley's tenure in Pittsburgh. He has been placed on injured reserve with a nagging calf injury after appearing in 11 games. Woodley, who signed a six-year, $61.5 million deal in 2011, has just five sacks this season but was tied for seventh among edge rushers in pressuring opposing quarterbacks with a 9.6 percent pressure rate on passing plays through Week 14 of the season, according to Greg Bedard of The MMQB.
Giving Woodley a post-June 1 designation or waiting until after June 1 is the likely approach if he is released. Woodley's cap number is $13.59 million next year while the Steelers would have a $14.17 million cap charge for him in 2014 by cutting ties with him before June 2. The Steelers would gain $8 million of cap room in 2014 with post-June 1 treatment. There would be an $8.58 million cap charge relating to Woodley in 2015 under this scenario.
The Steelers could look to address Ben Roethlisberger's contract, which will have two years remaining, because of his $18.895 million and $18.595 million cap numbers in 2014 and '15. There were two years remaining on Roethlisberger's rookie contract when he signed a six-year extension averaging $14,664,417 in 2008. The deal made him the NFL's second-highest paid player and his $33.2 million in guarantees were the third-most ever in an NFL contract.
Roethlisberger said "he would do whatever it takes to stay" in Pittsburgh. Some have interpreted this as he will take the same type of steep hometown discount Tom Brady gave the New England Patriots when he signed a five-year, $57 million deal in an offseason contract renegotiation. Since Brady's deal is an anomaly among quarterbacks, Roethlisberger may have been referring to contract structure. In order for Roethlisberger to maintain the same place in the quarterback salary hierarchy as his 2008 deal, his new extension would need to top $20.75 million per year and $58 million in guarantees. Such a deal should be able to give the Steelers at least $3 million in immediate cap relief.
Joel Corry is a former sports agent who helped found Premier Sports & Entertainment, a sports management firm that represents professional athletes and coaches. Before his tenure at Premier, Joel worked for Management Plus Enterprises, which represented Shaquille O'Neal, Hakeem Olajuwon and Ronnie Lott.
By Joel Corry | Former Sports Agent
December 20, 2013 1:39 pm ET
Tony Romo has the NFL's No. 1 cap number for 2014 but the Cowboys have flexibility with his deal. (USATSI)
There isn't any particular method of managing the salary cap. Some teams are more mindful than others of the long-term cap implications of player signings and roster moves. Teams believing they are close to winning the Super Bowl can sometimes cloud judgment. This is when teams are more likely to push the envelope with the cap.
Contract restructures have become standard operating procedure in the NFL, particularly for teams with tight cap situations. In a typical restructuring, a player will convert some portion of his base salary or roster bonus (without reducing salary) into a signing bonus because it can be prorated or spread out evenly over the life of a contract (most other salary components usually can't be prorated) for a maximum of five years. The team gets a lower cap number in the current season while the player gains more short-term security.
For example, Andre Johnson created $4.125 million of cap room for the Houston Texans when he lowered his 2013 cap number from $14,859,043 to $10,734,043 by converting $5.5 million of his $11 million 2013 salary into a signing bonus. As a signing bonus, the Texans were able to prorate this $5.5 million over the four years left on his contract. Johnson's 2014, '15 and '16 cap numbers each increased by $1.375 million with the restructuring.
Cap outlook: Part I
Three teams (Dallas Cowboys, New Orleans Saints and Pittsburgh Steelers) are projected to be at least $10 million over the cap in 2014, which was tentatively set at $126.3 million during an NFL meeting on Dec. 11. The Detroit Lions and San Diego Chargers are also projected to be over the cap by approximately $4.6 million and $450,000.
Included in each team's calculations in order to give a more complete cap picture are the following:
1. Fourth-year proven performance escalators earned by third- through seventh-round picks under the 2011 collective bargaining agreement's rookie wage scale.
2. Tenders for restricted free agents and exclusive-rights players with expiring contracts.
3. Voidable contract years and futures contracts for practice squad players.
In the offseason, only the top 51 cap numbers count on the cap. These projections include 51 players unless noted otherwise. Below are some options for the three teams to become cap compliant when the 2014 league year begins on March 11.
1. Dallas Cowboys
Salary cap overage: $25,084,217
Adjusted salary cap: $127,609,694
It shouldn't be a surprise that the Cowboys have an NFL-high $152.7 million in cap obligations for 2014. The Cowboys are usually at the top of the list for future cap commitments toward the end of each season.
Quarterback Tony Romo has the NFL's largest cap number in 2014 at $21.773 million. The Cowboys built some cap flexibility into the six-year, $108 million contract extension (with $55 million in guarantees) Romo signed during the offseason because the deal gives them the discretionary right to convert a portion of his base salary into signing bonus. Most of the lucrative deals the Cowboys have signed in recent years also contain this clause, which allows them to automatically create cap room. They can add $10.036 million of cap room by converting $12.545 million of Romo's fully guaranteed $13.5 million 2014 base salary into signing bonus. Romo's 2014 cap number would drop to $11.737 million.
The Cowboys can pick up $3.816 million of cap room by restructuring the six-year, $42 million contract extension (worth a maximum of $51 million) that Sean Lee received during the preseason. Brandon Carr's $12.217 million cap number can be lowered to $6.801 million if a voidable 2018 contract year is added for proration purposes in a contract restructuring. Reworking Jason Witten's deal can yield $3.236 million of cap space by also adding a voidable 2018 contract year. The Cowboys will pick up $22.504 million of cap room with these four moves.
The Cowboys may face a difficult choice with DeMarcus Ware, whose best days are behind him. The seven-time Pro Bowl defensive end's cap number is slightly over $16 million next year because he has restructured his contract for three straight years. Ware has been limited to six sacks this season while dealing with quadriceps and back injuries. The last time he didn't reach double-digit sacks was his rookie season. Instead of restructuring Ware's contract again, it may make sense to ask the 31-year-old to reduce his $12.75 million 2014 salary. A $4 million paycut seems reasonable considering 32-year-old Robert Mathis, who leads the NFL with 16½ sacks, is playing under a contract of $9 million per year. Ware could be given the opportunity to earn the money back with not-likely-to-be-earned sack incentives. If Ware is unwilling to accept the paycut, a little less than $7.5 million would be gained by releasing him.
Ware becoming a cap casualty would increase the importance of re-signing defensive linemen Jason Hatcher or Anthony Spencer. Hatcher is having a career year. His nine sacks rank second among NFL interior defensive lineman. The 32-year-old is intent on testing the free-agent market where his age could be a factor. Spencer, who was franchised by the Cowboys for a second time this year, has missed almost all of the season after microfracture surgery. Spencer's knee injury could make him extremely affordable.
The emergence of wide receivers Terrance Williams and Cole Beasley has made Miles Austin's $8,249,400 cap number a luxury. Releasing Austin will only give Dallas slightly less than $400,000 of cap relief unless it waits until after June 1 or uses one of the two post-June 1 designations NFL teams are allowed each year to release players before June 2 with favorable cap treatment. June 1 is significant because the acceleration of bonus proration in future contract years is delayed until the following season for players released after this date. With a post-June 1 designation, the Cowboys would be required to carry Austin's full cap number until June 2 even though he won't be a part of the roster. The Cowboys would pick up $5.5 million of cap room at that time when Austin's 2014 salary comes off the books. The Cowboys would have a $5,106,200 cap charge, or dead money, for Austin in 2015.
Wide receiver Dez Bryant has already stated that he would like a new deal. He has a $2.03 million salary in 2014, the final year of his five-year rookie contract. Bryant is on track to become the first wide receiver in Cowboys history with consecutive seasons of at least 90 catches and 1,200 receiving yards.
Bryant can't use Dallas' cap situation to his advantage by creating significant cap space through an extension since his 2014 cap number is $3,898,500. A new deal is still possible without increasing his 2014 cap number but it would require a large fully guaranteed 2015 base salary where the structure is similar to Carr's deal. The five-year, $50.1 million contract Carr signed in 2012 contained a $3.2 million first-year cap number and a fully guaranteed $14.3 million base salary in the second year. Given that the Cowboys aren't afraid to pay wide receivers near the top of the market (Roy Williams: six-year, $54 million contract extension in 2008), Bryant's next contract could average more than $13 million per year with over $30 million in guarantees.
2. New Orleans Saints
Salary cap overage: $16,653,767
Adjusted salary cap: $126,944,911
The Saints can make significant headway with their cap situation by releasing 32-year-old Will Smith, who is missing the season with a torn ACL. His release will take $11.55 million off the books. Safety Roman Harper was a rumored cap casualty in the offseason and $2.18 million of cap space will be created if the Saints part ways with him before his $650,000 roster bonus is due on the third day of the league year (March 13). An increased role for Khiry Robinson in the Saints' running back rotation could allow for the release of Mark Ingram or Pierre Thomas. The Saints would gain almost $1.4 million from Ingram's departure while letting Thomas go would create $2.9 million of room.
Drew Brees has the largest cap number on the team at $18.4 million. His contract wasn't restructured this year and may be left alone again to avoid increasing his $26.4 million 2015 cap number. Jahri Evans, Ben Grubbs and Marques Colston are candidates to restructure their contracts again because of their 2014 cap numbers -- $11 million, $9.1 million and $8.3 million. If their restructures are similar to this year, the Saints can create around $9 million of cap room collectively.
Retaining Pro Bowl tight end Jimmy Graham will be the Saints' top offseason priority. Using Graham like a wide receiver complicates negotiations for a new deal. Top wide receivers make significantly more money than top tight ends. The New England Patriots' Rob Gronkowski is the NFL's highest-paid tight end with the six-year, $54 million contract extension ($18.17 million in guarantees) he signed last year. Calvin Johnson and Larry Fitzgerald pace the wide receiver market with long-term deals averaging slightly more than $16 million per year containing in excess of $45 million of guaranteed money.
Absent a new deal, the Saints will place a franchise tag on Graham. Expect Graham to file a grievance to be classified as a wide receiver since franchise tags are determined by the position where the player participated in the most plays during the prior season. Graham would gain tremendous leverage in negotiations if he won an arbitration hearing on his franchise-tag position because the wide receiver franchise number will be approximately $11.5 million while the tight end number will be close to $6.7 million.
Pittsburgh may restructure Big Ben's contract due to cap numbers near $19M the next two years. (USATSI)Pittsburgh may restructure Big Ben's contract due to cap numbers near $19M the next two years. (USATSI)
3. Pittsburgh Steelers
Salary cap overage: $10,528,419
Adjusted salary cap: $127,697,097
Pittsburgh's cap is top-heavy. They have five cap numbers over $10 million ($67.13 million total) which account for a little more than half (52.5 percent) of their adjusted salary cap.
Releasing offensive tackle Levi Brown, acquired from the Arizona Cardinals for a conditional 2014 draft choice in Week 5 this season, will create $6.25 million of cap room. Restructuring the contracts of inside linebacker Lawrence Timmons and wide receiver Antonio Brown will free up almost $8 million of cap space combined if their entire 2014 salaries except for their league minimums are converted into signing bonus.
The Steelers might have to make some difficult decisions with mainstays of the defense. Troy Polamalu is no longer in the discussion of the NFL's best safety but he will have the NFL's highest cap number for the position during 2014 at almost $11 million in the final year of a three-year, $29.6 million contract extension. The Steelers will pick up $8.25 million of cap room if he is let go. Ike Taylor is also entering the final year of his contract. The 33-year-old is a bottom-tier cornerback, according to Pro Football Focus' rankings, and $7 million of cap space will be gained with his release. Pay cuts could also be options for both players.
Outside linebacker has always been a high-turnover position for the Steelers. Most recently, James Harrison was released in the offseason when he refused a pay cut. Jarvis Jones was selected 17th overall in the 2013 draft to replace him. He has been relegated to backup duty because of Jason Worilds' breakout season in his contract year. Worilds leads the Steelers with seven sacks.
Re-signing Worilds probably means the end of LaMarr Woodley's tenure in Pittsburgh. He has been placed on injured reserve with a nagging calf injury after appearing in 11 games. Woodley, who signed a six-year, $61.5 million deal in 2011, has just five sacks this season but was tied for seventh among edge rushers in pressuring opposing quarterbacks with a 9.6 percent pressure rate on passing plays through Week 14 of the season, according to Greg Bedard of The MMQB.
Giving Woodley a post-June 1 designation or waiting until after June 1 is the likely approach if he is released. Woodley's cap number is $13.59 million next year while the Steelers would have a $14.17 million cap charge for him in 2014 by cutting ties with him before June 2. The Steelers would gain $8 million of cap room in 2014 with post-June 1 treatment. There would be an $8.58 million cap charge relating to Woodley in 2015 under this scenario.
The Steelers could look to address Ben Roethlisberger's contract, which will have two years remaining, because of his $18.895 million and $18.595 million cap numbers in 2014 and '15. There were two years remaining on Roethlisberger's rookie contract when he signed a six-year extension averaging $14,664,417 in 2008. The deal made him the NFL's second-highest paid player and his $33.2 million in guarantees were the third-most ever in an NFL contract.
Roethlisberger said "he would do whatever it takes to stay" in Pittsburgh. Some have interpreted this as he will take the same type of steep hometown discount Tom Brady gave the New England Patriots when he signed a five-year, $57 million deal in an offseason contract renegotiation. Since Brady's deal is an anomaly among quarterbacks, Roethlisberger may have been referring to contract structure. In order for Roethlisberger to maintain the same place in the quarterback salary hierarchy as his 2008 deal, his new extension would need to top $20.75 million per year and $58 million in guarantees. Such a deal should be able to give the Steelers at least $3 million in immediate cap relief.
Joel Corry is a former sports agent who helped found Premier Sports & Entertainment, a sports management firm that represents professional athletes and coaches. Before his tenure at Premier, Joel worked for Management Plus Enterprises, which represented Shaquille O'Neal, Hakeem Olajuwon and Ronnie Lott.
