Tag: rams salary cap

Salary cap implications of Rams releasing Todd Gurley, Clay Matthews

The Rams freed up some cap space with these two moves, but they also took on plenty of dead money.

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It’s been clear for a while now that the Los Angeles Rams would be lacking cap space this offseason, given their top-heavy roster with stars such as Jared Goff, Aaron Donald and Brandin Cooks eating up a good portion of the salary cap.

The team has been making moves this week to free up some money, beginning with the declined option for Nickell Robey-Coleman. It continued with the shocking release of Todd Gurley on Thursday, as well as the release of Clay Matthews.

Much was made about Gurley’s contract being a deterrent in any possible trade, which turned out to be the case. The Rams couldn’t find a trade partner and were forced to release the star running back.

So how does this move – as well as the decision to release Matthews – impact the Rams’ salary cap? It does create some cap space, but also brings on a large chunk of dead money in the next two seasons. For Gurley alone, he’ll leave behind $20.15 million in dead money.

According to Field Yates of ESPN, the Rams released Gurley with a post-June 1 designation. That spreads out the dead cap charge of $20.15 million over the next two years, which makes it an easier pill to swallow in 2020. With this move, the Rams save $5.5 million in cap space this year. Had he been an outright cut, they would’ve lost $2.9 million in cap space.

The timing of Gurley’s release was calculated, too. By cutting him before Friday, they avoid having to pay him another $10.5 million that would’ve become fully guaranteed at 4 p.m. on Thursday.

And according to Tom Pelissero of NFL Network, $2.5 million includes offset language, which means the Rams get a portion of his contract back if/when he signs with another team this offseason. It’s similar to Blake Bortles’ situation last year, with the Jaguars paying part of his salary, allowing the Rams to only pay him $1 million.

As for Matthews, his release is much simpler. The Rams save $5 million in cap space by releasing him before 4 p.m. ET on Thursday, since they didn’t have to pay him an additional $2 million in the form of a bonus.

And if Matthews signs elsewhere for $2 million or more – which he certainly should – the Rams will gain another $2 million in cap space.

According to Over the Cap, the Rams have $9.57 million in cap space. That includes Andrew Whitworth’s extension, but not the signings of Austin Blythe, Leonard Floyd or A’Shawn Robinson.

It’s not yet clear how those contracts will impact the Rams’ salary cap because the structure of those deals hasn’t been released, but Floyd’s deal is for $10 million and Robinson’s averages $8.5 million per year.

Ignoring those contracts and adding in the extra space from Gurley and Matthews, the Rams have about $20.07 million in cap space, once Gurley’s money gets added in on June 2.

NFL sets salary cap at $198.2 million for 2020

That’s slightly less than the projected amount of $200 million that was previously reported.

After players voted to approve the proposed collective bargaining agreement on Saturday, the NFL announced an important piece of news for the current offseason. According to Tom Pelissero of NFL Network, the salary cap will be $198.2 million in 2020.

That’s slightly lower than the previous projection of $200 million, but within the original projected range of $196.8 million and $201.2 million.

Last year, the salary cap was $188.2 million. That’s an increase of only 5.3 percent, which is the smallest since 2013.

For the Rams, that gives them a little bit less room to work with as five starters are set to become unrestricted free agents on Wednesday at 4 p.m. ET.

According to Over The Cap, the Rams were projected to have $19 million in cap space with the salary cap set at $200 million. Now that it’s $1.8 million less than the projection, the Rams are expected to have about $17.2 million to spend this year.

They can free up money by restructuring Jared Goff’s deal, which would create $16.8 million, while also releasing or trading other players on the roster. It remains to be seen if they’ll make any of those moves, though, as the start of the new league year is set to begin Wednesday.

Why Rams may not restructure Goff’s deal to save $16.8M in 2020

Restructuring Jared Goff’s deal to save nearly $17 million in 2020 seems like a no-brainer, but Les Snead explains why it isn’t.

Considering the Los Angeles Rams’ salary cap situation, and with five starters set to hit free agency, it would seem like a no-brainer for them to free up money wherever possible. After all, they’re projected to have just under $15 million in cap space this offseason, which doesn’t include a $5.25 million savings from Eric Weddle retiring.

They have a chance to free up $16.8 million in cap space by restructuring Jared Goff’s contract, nearly doubling their available spending money for 2020. Of course, that newfound money has to come from somewhere, as it doesn’t just appear out of thin air.

By restructuring Goff’s deal, it would take his signing bonus and spread it out over the remainder of his contract, which has four years on it after the 2020 season. In doing so, it becomes more difficult to get out of his contract, should the Rams want to down the road.

General manager Les Snead explained why restructuring Goff’s deal isn’t as certain to happen as it seems.

“When you open up a contract to get cap space today, what it will do eventually is take more cap space than the original contract takes up now in future years,” he said on the Rams Revealed podcast. “So let’s say his cap space is $100 for the next five years. If you open up that $100 today and put it in signing bonus, we now have to spread that $100 over the next four years. So ultimately, cap space goes from $100 for his next four years to $125. Very simple math. Eventually, it’s a short-term solution – again, 2020 is important – but you’ve heard the deal ‘kick the can down the road.’ That’s ultimately trying to put in math what that means.”

The Rams would like to keep Dante Fowler Jr., Cory Littleton, Andrew Whitworth, Michael Brockers and even Austin Blythe. That’s no financially possible with $20 million in cap space, unless all of them take very little money on the front end in 2020.

Even restructuring Goff’s deal would make it extremely tough to keep all five, but it would make it more feasible to re-sign two or three instead of maybe only one. But as Snead points out, restructures hinder teams in the future.

“You just give it to him in signing bonus because you know he’s going to be here. And now you then spread out the cap charge over the next four years. So if you create cap space today, you’re going to be hindering yourself in the future,” he said. “Sound decision is, at some point you’re going to have to determine what year do you take the pain. So that’s what you weigh.”

In many fans’ minds, the opportunity to free up cap space now to bolster the roster is impossible to pass up. But if the Rams do that by restructuring Goff’s contract, it puts more money on the cap in future years and makes it tougher to sign players down the line.

“I know today, we’re all going to get emotional and go, ‘Oh, no no no, just worry about ’20.’ But when ’20 is gone and it’s over and we’re never getting 2020 back again, then we do know that 2021 will become a priority. And at that point, you’re like, ‘Well, what do you mean? Why’d you do that? That was not the wise, sound thing to do,’” Snead explained.

One argument in favor of restructuring Goff’s deal that may get overlooked is the fact that a new CBA is coming. With it, the salary cap could reportedly spike to $240 million in 2021 after being set at $200 this year.

If the Rams truly want to go after one of the top free agents this offseason and need the money to do so, they can push Goff’s money back when the salary cap will be higher and worry about it later.

But with the way Snead is talking, it seems there’s a decent chance the Rams will pass on this chance and keep Goff’s deal as-is.

Rams face bigger free agency questions in 2021 than this offseason

The Rams’ decisions this offseason will have a ripple effect in 2021, too.

The Los Angeles Rams have four huge decisions to make in free agency this year, all pertaining to starters who are set to hit the market. Dante Fowler Jr., Cory Littleton, Andrew Whitworth and Michael Brockers have all been key contributors in the last two seasons, but there’s a chance at least two or three of them won’t be back in Los Angeles.

As difficult as these choices will be, there are even bigger questions facing the Rams in 2021. And not to look too far ahead, but the front office better be sure to save some money for next offseason when six current starters will become free agents.

Let’s have a look at the key players whose contracts will expire after the 2020 season:

  • CB Jalen Ramsey
  • CB Nickell Robey-Coleman
  • OLB Clay Matthews
  • CB Troy Hill
  • TE Gerald Everett
  • WR Cooper Kupp
  • S John Johnson
  • WR Josh Reynolds
  • OLB Samson Ebukam

As of now, the Rams are projected to have just $86.2 million in cap space in 2021, which may seem like a lot but only ranks 25th in the NFL. That’s because four players will take up a good chunk of the salary cap that year, leaving little money for everyone else.

The combined cap hits of Jared Goff, Aaron Donald, Brandin Cooks and Todd Gurley is about $90.3 million. With a projected cap of $209 million in 2021, according to Spotrac, that’s more than 43.1% of the Rams’ cap space.

Of course, moves can (and will) be made to create more room, but the expected contract extension for Ramsey will put another big dent in the Rams’ pockets. The same can be said for Kupp and Johnson, too.

Spotrac projects market value for top free agents, and according to their model, Ramsey’s next contract should be worth about $16.8 million per year, which would make him the highest-paid corner in the NFL. Incredibly, Kupp’s projected contract is worth $19.4 million per year, which would put him second among all wide receivers – a scenario that’s difficult to see happening for the Rams with Cooks and Robert Woods also on the books.

Matthews is almost certain to leave after his contract expires, and he could even be cut this offseason. Robey-Coleman has an option for $4.5 million in 2020, which the Rams will likely pick up to keep him around for another season. Everett could be shopped on the trade market this offseason after Tyler Higbee’s emergence, and the Rams won’t have much of a need to pay Reynolds if Kupp re-signs.

A lot of the decisions the Rams make this offseason will impact their position next year when all of their key players from the 2017 draft class hit free agency – in addition to Ramsey. So not only will they have to be financially smart for the upcoming season, but for their long-term future, too.

Rams carrying very little dead money into 2020

The Rams don’t have much dead money on the books in 2020.

For as much is made about the Los Angeles Rams’ salary cap situation, there’s one aspect of it that puts them in a good spot. Heading into 2020, they’re carrying very little dead money on the books, which not every team can say.

According to Spotrac, the Rams only have $387,593 in dead money at the moment, which is the sixth-lowest total in the NFL. Most of that comes from one player, too.

John Franklin-Myers, who was shockingly a final cut before the 2019 regular season began, carries a dead cap charge of $226,180. Obviously, that’s not a big number, but it does make up about two-thirds of the Rams’ dead money.

The rest of it comes from John Kelly, Dakota Allen, Trevon Young, Alex Bachman and Johnathan Lloyd. Kelly and Allen were both signed back to the practice squad, but their initial dead cap charges still remain on the books.

As of now, the Rams are projected to have between $16.8 million and $21.3 million in cap space next season, depending on where the salary cap falls between the $196.8-$201.2 million projection.

That’s the ninth-lowest total in the NFL for next season, which means the Rams will have to do some work in order to clear some space for free agents – both their own and outside players. With Cory Littleton, Dante Fowler Jr., Michael Brockers and Andrew Whitworth hitting free agency, the rams won’t be able to keep everyone.

If they do go to extremes to create cap space in 2020, though, it’ll bring more dead money on the books. For example, if they trade Todd Gurley, they’ll incur a dead cap charge of $12.6 million, while also saving $4.65 million. Similarly, if they trade Brandin Cooks, they’ll take on $17.8 million in dead money, which is $1 million more than Cooks’ cap hit. So they’d be paying him more to play elsewhere than they would to keep him.

Les Snead explains why Rams being in cap trouble is a ‘false perception’

Les Snead doesn’t believe the Rams are in cap trouble for a couple of reasons.

The salary cap makes building a truly dominant roster difficult. The best players get paid accordingly, and with limited spending money, keeping everyone is near-impossible. The Rams are loaded with talent and have paid most of their top players, but as a result, their cap space is limited.

They’re projected to have the ninth-lowest cap space in 2020, and that’s without giving Jalen Ramsey an extension. That’s with Cory Littleton and Dante Fowler Jr. both hitting free agency. And that’s with Cooper Kupp only counting $1.2 million against the cap next season.

It’s going to be tough for the Rams to keep all of those players, as well as others such as John Johnson, Gerald Everett and Robert Woods, but they’re not in cap trouble.

At least, not according to general manager Les Snead. He says that’s a false narrative, one that doesn’t actually reflect the Rams’ financial situation.

“I do call it probably a false perception,” Snead told reporters this week, via ESPN. “Ultimately, I can see why that would be a perception, but maybe there’s an element of staying a little too shallow.”

There are always methods for manipulating the cap. Players can have their contracts restructured, others can be cut or traded, and the salary cap rises every year. Those are factors that can help the Rams, as well as a new CBA that’s coming this year.

“From a salary-cap standpoint, and I assume the cap does go up, there’s a new collective bargaining agreement that’s coming that’s another variable that we don’t know about,” Snead said. “We’ve shown in the past that when you have commodities that you might move on with via trade to collect draft capital that maybe the perception says you don’t have and to clear cap space.”

Paying Ramsey is one of the next dominos to fall, considering he’s only under contract through next season. After that, he’ll become a free agent, and it’s safe to assume he’d be unwilling to play on the franchise tag in 2021.

Todd Gurley and Brandin Cooks would seem to be trade candidates, given their lack of production for the price the Rams are paying, but finding someone to take on their contracts will be difficult. Restructuring Goff’s contract can free up $16.8 million, which can help create space for Ramsey’s eventual deal.

There are countless ways to find spending money, all of which the Rams will likely explore this offseason.

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Rams may have to choose between Cory Littleton and Dante Fowler

The Rams probably won’t have enough money to pay both Cory Littleton and Dante Fowler Jr.

Two pleasant surprises on the defensive side of the ball for the Rams this season have been Dante Fowler Jr. and Cory Littleton. On a one-year contract, Fowler has produced 11 sacks, 16 tackles for loss and 16 quarterback hits, showing that betting on himself was a good gamble to make.

Littleton, by the same token, is in the final year of his contract and having a stellar season. Though he wasn’t named to the Pro Bowl, he’s been one of the best linebackers in all of football this season.

Both of their campaigns are great to see, but it also could be bad news for the Rams. Because of the contracts Fowler and Littleton are going to command, the Rams may not be able to afford both of them.

With the salary cap expected to be between $196.8 million and $201.2 million in 2020, the Rams are projected to have around $23-27 million in cap room next year. In addition to Fowler and Littleton, three other starters are slated to become free agents: Andrew Whitworth, Austin Blythe and Michael Brockers.

The Rams would probably like to bring back all three, but doing so and retaining Fowler and Littleton will be near-impossible.

Based on the fact that Za’Darius Smith got a contract worth $16.5 million per year from the Packers last year, it’s easy to imagine a scenario where Fowler gets nearly that much in free agency next year – if not more. Smith had 8.5 sacks in 2018 before becoming a free agent, and Fowler has 11 through 15 games.

Dee Ford got $17 million per year deal from the 49ers after being traded by Kansas City, while Danielle Hunter is making $14.4 million per year on the deal he signed in June of 2018.

In other words, expect Fowler to seek a contract in the range of $15-17 million per year. The Rams can structure his contract to lessen the cap hit in 2020 when they’re thin on space, but that also pushes more money to the back of the contract when players such as Aaron Donald, Todd Gurley and Jared Goff will have big cap hits, too.

As for Cory Littleton, his comparison is fairly easy. The Panthers basically set Littleton’s floor earlier this month when they signed Shaq Thompson to a four-year, $54.16 million deal – an average salary of $13.54 million.

The Cowboys gave Jaylon Smith $12.75 million per year this offseason, as well, which is a good comp for Littleton. Myles Jack’s contract with the Jaguars is paying him $14.25 million per year, while Deion Jones is making the same amount with the Falcons.

None of those players are significantly better than Littleton, if at all. Jones is the only one of them that has even made the Pro Bowl. Littleton is 26 years old, so he still has plenty of prime years ahead of him at inside linebacker.

He’ll almost certainly get at least $13 million per year with his next contract, which again, might be more than the Rams are willing to spend.

If you combine his projected salary of $13 million with Fowler’s potential of making $15 million, that’s a big chunk of change the Rams would have to shell out to keep both. Again, contract structure doesn’t mean they’re going to get that much in Year 1, but both deals would put Littleton and Fowler among the highest-paid players at their positions.

The same is already true of Aaron Donald, Jared Goff, Todd Gurley and Brandin Cooks – and Jalen Ramsey is going to break the bank in the near future, too.

So when it’s all said and done, the Rams will probably have to choose between Fowler and Littleton. Keeping both is going to be extremely difficult unless major changes are made to the Rams’ salary cap – which seems unlikely, given the way this team is set up.

Be prepared to see at least one of the two in another uniform next season, if not both.

NFL sets projected salary cap for 2020, giving Rams extra spending money

The Rams are projected to have between $22.8 and $27.2 million in cap space next year.

The Los Angeles Rams (and the other 31 teams) will have some extra spending money next year thanks to the ever-rising salary cap. According to Ian Rapoport, the NFL has informed every team that the salary cap is projected to be between $196.8 million and $201.2 million.

That’s a rise from the current cap of $188.2 million, meaning it will increase by $8-13 million next year. As Rapoport points out, the cap has risen by 40% since 2015 when it was just $143.3 million.

Over The Cap projects the Rams to have $26 million in cap space next year, which is the ninth-fewest in the NFL. That’s with the cap projected at $200 million, so based on the new information released by the league, the Rams will have between $22.8 million and $27.2 million in cap space next year.

Obviously, that’s not much in comparison to the Colts, who are projected to have more than $105 million in cap space. The Dolphins are also expected to have over $100 million to spend next year. The Rams have players they need to pay, too, led by Cory Littleton.

He’ll be a free agent in 2020, and after seeing the contract Carolina gave Shaq Thompson – four years, $54 million – it’s reasonable to think Littleton’s deal will surpass that. Then there’s Jalen Ramsey, who’s undoubtedly seeking a contract extension, as well as Dante Fowler Jr., who will hit free agency after this season.

The Rams don’t have much money to work with, but with the cap rising and money rolling over after trading away Marcus Peters and Aqib Talib, the team has some added flexibility.

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