Why the Browns are Financially Broke Now till 2028

 

Your Cleveland Browns are forced to underspend the salary cap in 2025, 2026 and 2027 compared to their AFC North rivals because of Deshaun Watson's $167 million of cap charges oer the next three seasons, plus another $92 million in dead money over the same period, and probably much more if they cut or trade overpaid players to liberate cap space. So that's at least $259 million dollars over the next three seasons, and it is going to get worse before it gets better.  

It doesn't mean that the Browns are going to be terrible. The Denver Broncos were able to succeed in 2024 despite carrying $89 million in "dead cap" charges, mainly due to Russell Wilson's contract.  Nevertheless the Sashi Brown plan to spend our way to the Super Bowl is OVER.  

It's true that the Browns have some offsetting savings from past seasons, that money is more than cancelled out by $36 million dollar charge for Deshaun Watson and $68 million for former Browns stars including Amari Cooper, Zadarius Smith, Jed Wills, Dalvin Tomlinson, and several others.  

This season, we can guesstimate the actual amount they will spend on players not named Deshaun Watson by using the top 51 salaries pubished in OvertheCap.com and adding about 15 million dollars to cover the Practice Squad, injury replacements and late free agents. It's a bit of a shell game because teams can push money into the future by restructuring contracts to a certain extent. Nevertheless the total cap spent on players who are actually playing provides us a rough estimate of what the teams are actually investing in this season. That would say our Browns will come in at $216 million for money actually spent on players who actually play this season, while the Ravens will be at $249, the Bengals at $261 and Steelers $266. Thus, the Browns will spend about $30 million to $50 million less on their active players than their Division rivals this season, and it will get worse in 2026 and 2027.  

Those sportswriters who are writing stories about the Browns being able to afford trading first round draft picks and spending money on high priced contracts like Micah Parsons from the Cowboys are living in fantasyland. Quit reading that stuff!  Face it, the Browns ability to afford players who actually play is millions less than their AFC North rivals' this year, and it will probably get worse in 2026 and 2027. They simply need to recharge all the cash and draft picks that were blown on Deshaun, plus all the future-loaded contracts that are now coming due.  

The budget shortfall has been planned since 2022 when they signed Deshaun.  The idea was that they were going to overspend for as long as possible and try to win a Super Bowl and pay for it later. Well, they didn't win, and "later" has arrived.

Still, let's not give up hope.  A number of teams have won Super Bowls with the backup quarterback, including three in a row from 1999 to 2001: 1999 Rams with undrafted Kurt Warner, 2000 Ravens with Trent Dilfer, and the 2001 Patriots with second year man Tom Brady.  The most recent backup to bring home a Lombardi Trophy was Nick Foles and the 2017 Eagles.  

So, it's not good that the Browns are overspent for the next few years, but it's not impossible to win, either.  But can we at least stop overinvesting in quarterbacks? In addition to the well-publicized over-investiment in Deshaun, the Browns have burned through $22 milllion dollars in the Deshaun era and used five additional draft picks on quarterbacks in the past three years. This is preposterous! In 2026, with two first round picks (probably good ones, since the extra one is tied to Jacksonville), the temptation will be enormous to draft yet another quarterback, this time to replace Shedeur, if he does not win the Super Bowl as a rookie.   

I did not like the process that brought Shedeur to Cleveland, but here he is. He is the quarterback of the future, and no one else.  So stop wasting additional draft picks! 

A

$22,584,000

Za'Darius Smith

$14,233,000

Jedrick Wills

$11,812,057

Dalvin Tomlinson

$7,042,000

the money that they are spending on players not with the team, plus 

S

Browns 2018 Free Agent Fantasies: Reality Check

    Estimates are all over the place for what the Browns will likely do in Free Agency.  Yes, their total cap space is $108 Million dollars, but no they are not going to spend nearly that much.   The carryover (unspent money from previous years) is not likely to be be all blown in one year, plus don't forget to leave some money for all those 2018 draft choices.  Hence here is the Village Elliot's attempt to determine what is realistic. 

     In 2018, the Browns are in very good shape, but not to the tune of $108 million dollars as suggested in some articles.  NFL Salary cap space is compiled in overthecap.com.  Let's break it down as follows:   The Browns have $128 Million committed in salaries for 2018 (which includes $10 million "dead money" to players no longer on the team).  That's a very low number.   The estimated salary cap for 2018 is $178 million.  There's another $58 Million in unspent money from previous years ("carryover dollars").  So the "total cap" is $178 +$58 M -$128 M = $108 M.    That's where the $108 Million in salary cap comes from, but that assumes zero rookies signed, zero departing veterans to replace, and assuming you blow all the carryover money in one year.  None of those things are realistic. 

Carryover money is just like a savings account in case of an emergency.  Likely it will not be used at all in 2018, so poof!  there goes $58 Million.  The Browns also will have a much larger than usual bill for rookies, as they have to be paid after you draft them.  In 2018, that will be about $28 Million.  Plus, we have to either re-sign Isaiah Crowell or provide money to replace him. 
   That may run $18 Million for 13 players, or in other words about $12 Million above the league minimum for those roster spots.  This number also comes from overthecap.com.   

       My guess is the Browns let will their carryover dollars ride and spend up to the current limit or $178 Million total expenditures (including $6 Million to players not with the team). Also, the Browns have two free agents in Isaiah Crowell and backup Marcus Martin.  So let's allow $5 Million to either re-sign Crowell or come up with a replacement.  So,  compared to last year, the difference in player salaries is $178-$12-$128- $5 = $29 million dollars, give or take, above 2017.  Conclusion:  That's a lot of money, enough for three or four significant starters.  So $108 Million is the absolute limit if they sign no draftees, give zero pay raises and blow all their saved-up carryover money in one year (totally unrealistic) whereas $33 million is where I put the over-under for what they will actually add.   That's still a lot of money, enough to add two or three very significant players.  This is not going to be like previous years in which they had tons of cap space to raise fans expectations, but in which they deliberately underspent the cap and also let star players leave without being replaced.  No, in 2018 they really are going to add signficant players.  I promise.    

        In addition there are currently five draft picks in Round 1 and 2 and a total of 13.   These high picks should usually start or at least contribute significantly.   So, when all is said and done, they have one guy who might leave in Free Agency (Crowell) but they can replace him with about 8 very good players.   It sounds crazy, but I believe they will have enough firepower to contend next year if they get their act together.  

Browns Salary Cap Demystified

     Browns fans have totally gotten their hopes up by the oft quoted number that they have $41 M of salary cap room, figuring they can add $41 M of free agent salaries in 2015. THAT IS NOT TRUE. It's more like $7 M now, NOT $41 M.

Mr. Tashaun Gipson would like some of the $41 Million in Salary Cap Room that the sportswriters are talking about.  

     Let's review what goes into the "cap space."    First of all there is "carryover" money of $18 M because they underspent the past two years. They have permission to overspend $18 M (temporarily raising the total salaries to $162 Million instead of the NFL limit of $143 M), but they would then have to cut payroll by $18 M in 2016. That would not make sense, and is not going to happen.

  

     Teams that use their carryover are teams like the Dolphins who had an enormous free agent signing with Ndamukong Suh, not to mention former Brown Jordan Cameron.   But they will have to shrink the payroll in future years, so if they don't win this year it will be harder for them to improve.  As it is, they are cutting a number of veterans to try to shrink their payroll.  

    Also they are going to have the NFL Draft again this year, and that costs money,  like 8 million dollars worth, so all NFL teams including the Browns have to set aside money for that.   

   Plus the Browns have issued tenders (that is, formal offers) to  to Restricted Free Agents Gipson, Kitchen, Robertson and Bademosi. Basically that means that they are allowed to match offers that these players receive from other teams. The Browns would also be able to receive draft choices if they don't match the offers, but most of the time Restricted Free agents do indeed re-sign with their old team.   That will cost another $6 or $8 million or so. 

Ok, so ADD THE NUMBERS. Carryover plus draft money plus restricted agents totals $32 to $34 M by my estimate. As of today, the Browns have about $7 M to spend for additional free agent salary in 2015, not $41 M.  They could go a little higher if they dip into their carryover salary cap, as explained above.  But basically there is enough for one or two quality players, but not an army of All-Pro's.

     It also bears mention that the Browns are losing some good athletes including Cameron, Hoyer, Sheard and Skrine.  That's about $18 Million in 2015 cap charges right there.  Likely the Browns signings--notably McCown, Hartline and others to be determined, will be slightly below that level.  

What in the World are the Browns Doing??

Nine undrafted rookies on the roster...Trent Richardson gone, third stringer Brian Hoyer quarterbacking the team....is this any way to run a football team?

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By now, I don't think there is any other way to understand it.  The Browns have thrown in the towel on the 2013 season, and are in survival mode, trying to save as much money as possible for the future. 

  They started out with a plan to aggressively rebuild the team through free agency, signing premier free agents in linebacker Paul Kruger and defensive lineman Desmond Bryant.  But last April 15, the FBI raided the headquarters of Jimmy Haslam's main company, Pilot Flying J.  
    
My opinion is that by about late May the Browns' rebuilding project was put on hold for a year.   The Browns quit signing top tier free agents and in fact they started shedding payroll.  They started getting rid of highly paid but viable backups like running back Brandon Jackson and tight end Kellen Davis, replacing them with undrafted rookies.  

By now, the team is an astounding 26 million dollars under the salary cap.  This is the equivalent of two or three Pro Bowlers, or  if you prefer, about six starting-calibre NFL players.  

I think the Browns need to save money in order to cover the cash flow situation within the Haslam empire.   Pilot Flying J is probably going through a down year because of being over-extended (having bought out rival Flying J for a billion dollars only two years ago), not to mention the Browns.  As mentioned other times in The Village Elliot's Cleveland Browns blog, it is a reasonable guess that Pilot Flying J may be losing some customers after this recent fiasco, and moreover must be prepared to pay back something on the order of a hundred million dollars for illegally withheld discounts and fines.   I doubt if the banks are particularly thrilled about lending money to a company whose CEO is under the threat of a federal indictment.  

Getting rid of Trent Richardson made a big impact not only this year but in future years.  In addition, the deal makes the Browns an odds-on favorite to be in a very favorable position for the 2014 draft. The goal of management may be to draft a premier quarterback, which would make the team more attractive to prospective buyers.  The 2012 trade of four draft picks to move up one position to get Richardson now looks completely foolish if he is worth only a number one pick in 2014 (likely to be about the 25th overall if the Colts make the playoffs, versus number 3 overall for TRich).  This follows the tradition of packaging three picks for injured backup running back Montario Hardesty, plus a number one and a number two for Brady Quinn.  The Browns always approach the offseason as if they are loaded with talent and need only one or two key players to win the Super Bowl, but they always wind up with the thinnest roster in the NFL, and are usually in last place in their division.  


http://img.bleacherreport.net/img/images/photos/002/507/831/ScreenShot2013-09-19at9.47.59AM_crop_north.jpg?w=650&h=440&q=75

Currently, the Browns lead the NFL in salary cap room and it isn't even close.  They also lead the league with nine undrafted free agent rookies on the roster.  This is a young and untalented roster, and IT IS THE CHEAPEST TEAM IN THE NFL. This is not opinion, it's a fact, as measure by their being 26 million under the salary cap.

Meanwhile, the stalwart Haslam team is trying to get another 100 million dollars from the City of Cleveland in stadium improvements, and if they don't get it they may try to void their stadium lease, which would free them to move to another city.  Los Angeles is likely the first choice, but if the Jacksonville Jaguars (say) get there first, then no doubt the city will put a group of investors together to pry another team away from some other city.  My guess is that Haslam will be willing to listen.  

After all, Jimmy Haslam is  a Knoxville-based Steelers fan, a former minority owner of the Steelers.  He was approved by the NFL as the Browns new owner after he falsely promised that he would move to Cleveland to become a full-time NFL owner.  Thus far, Cleveland fans seem willing to overlook this, believing that Haslam has unswerving loyalty to Cleveland for some unknown reason.  Good luck with that, guys.  

     I predict that the Browns will continue their un-building program, and that Brandon Weeden or Jason Campbell could be offered in exchange for a low round draft pick.  This situation will continue until either Haslam is exonerated from the Pilot Flying J scandal, or else the Browns are sold.  I just hope that they can stay in Cleveland another year or two.   


http://www.knoxnews.com/photos/2011/feb/05/110898/
A former minority owner of the Steelers, Jimmy Haslam never did follow through on his promise to move to Cleveland to take over the Browns full time.  Instead his office is empty in Cleveland, but most Browns fans choose to believe he has their best interests at heart.