Dallas Cowboys lose $2.5M in salary cap space with loan repayment
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Earlier on Tuesday, it was reported that the Denver Broncos had to forfeit $4.5 million in salary cap space to repay loans they were allowed to take out against the cap when the new collective bargaining agreement was signed in 2011. Now, the cap-strapped Dallas Cowboys have had to endure their own $2.5 million cap charge for similar loans.
According to Cowboys Wire, the Cowboys’ available cap space shrunk from just under $5 million to just under $2.5 million upon repayment.
The loan stems from a provision in the two seasons after the new CBA went into effect that allowed teams to borrow $3 million in cap space against future salary cap charges in 2011 and then an additional $1.5 million in 2012. Those loans weren’t actual cash loans, it just allowed them to spend more money against the salary cap in those seasons that they then had to pay back five years later.
In total, 23 of the 32 teams in the NFL took out some sort of salary cap loan when given the opportunity. And the NFLPA started assessing those salary cap charges on Tuesday.
As currently constituted, the Cowboys don’t have enough cap space to sign all their pick at the 2017 NFL Draft. However, any Tony Romo move they’d make would free up enough space to get all the rookies under contract. But it won’t leave much room for anything else.