NFL Rumors: Steelers in Lose-Lose Situation with Mike Wallace

The first problem for the Pittsburgh Steelers is that they're way over the salary cap.

The second problem is that they don't even know whether free agent Mike Wallace is worth a lucrative deal.

According to Ed Bouchette of the Pittsburgh Post-Gazette, the Steelers are willing to allow Wallace to test the open market.

Wallace has been Pittsburgh's best receiver statistically for the last two seasons, catching 72 balls for 1,193 yards and eight touchdowns in 2011. But he disappeared in the second half of last season, catching only 29 passes for 393 yards in the final eight games. He caught just three balls for 26 yards against the Denver Broncos in the playoffs.

Wallace also appears to be a one-trick pony, excelling on go routes and outside flag patterns with his speed, while struggling in Cover 2 defenses.

The Steelers are reportedly about $10 million over the salary cap. Franchising Wallace for $9 million will put them about $20 million over the cap. They aren't going to do that.

The good news is that Wallace is a restricted free agent, meaning that another team has to match the Steelers' offer to land the 25-year-old. The bad news is that the Steelers won't be able to spend much money on Wallace anyway, meaning they are at risk of losing him to another team.

The Steelers would get a first-round pick from the team that signs Wallace. But even then, teams like the San Francisco 49ers and New England Patriots have lower first-round picks and are in dire need of a receiver.

All in all, the Steelers are in a very precarious position. If they do end up losing Wallace, they will have to scramble for receivers before the start of the season.