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Cutting Peyton triggers $16 million acceleration

File photo of Indianapolis Colts quarterback Peyton Manning calling a play during NFL's Super Bowl XLI football game in Miami Reuters

By releasing quarterback Peyton Manning, the Colts avoided paying Peyton Manning $28 million in cash, as well as carrying a $17 million cap charge in 2012.

Per a source with knowledge of Peyton Manning’s contract, cutting him results in $16 million in dead money.

It comes from the $20 million signing bonus Peyton received in August.  With a five-year deal, $4 million was charged to the cap in 2011, and the rest remains.

Because the new league year hasn’t begun, the Colts can’t divide the $16 million over two seasons.  Instead, the full $16 million hits their cap in 2012.

UPDATE 5:10 p.m. ET:  The contract shows that the Colts absorbed a $5.6 million cap charge in 2011, representing one-fifth of the $28 million option bonus that never was paid.  So they’ll get a credit against the $16 million acceleration, making the net cap hit $10.6 million.

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21 Responses to “Cutting Peyton triggers $16 million acceleration”
  1. bigjdve says: Mar 7, 2012 4:51 PM

    Wow – and the hits just keep coming for Colts fans. That is something that is going to really sucks being as they are cutting alot of veterans which means that they will probably have alot of dead money.

  2. rascalmanny says: Mar 7, 2012 4:53 PM

    If the Colts don’t go anywhere for the next 5 years that $28 million won’t seem so much.

    How many millions has Manning brought to the Colts and Indy? How much will they lose if the Colts don’t go anywhere for the next 5 years?

  3. bigdubba says: Mar 7, 2012 4:54 PM

    Bill and Chris overpaid, drafted badly, and left a real mess behind. Nice job, fellas.

  4. mlgamboa2 says: Mar 7, 2012 5:00 PM

    iggles suc anyway

  5. peytonsneck18 says: Mar 7, 2012 5:10 PM

    The Colts won’t be as bad as folks are projecting them to be. Gone are days of cap tied down to one player. Brackett. Clark,bullitt,and maybe Hughes gone too. They will bring in a few veteran defensive players that are familiar wth 3-4D and draft some good imediate player that will help now. They have the top picks each round n Polians are gone so new GM will be ok and do their homework on draft players. I have faith in Luck and Irsay

  6. xx4zu1 says: Mar 7, 2012 5:12 PM

    Payton robbed the Colts blind they should charge that man with grand theft. I guess they could look at it as severance pay or a workman’s comp settlement for the injuries he sustained while and employee of the organization.

  7. rascalmanny says: Mar 7, 2012 5:12 PM

    So what will Irsay tweet tonight?

    What song lyrics will appear at about 1 am?

  8. thesarcasm says: Mar 7, 2012 5:15 PM

    That would be an incorrect figure.

    The actual # is 10.4

    Since the OB was due in the 2011 league year, they were able to account for 1/5th of it in the 2011 salary cap.

    While the 16 million is correct in theory. The net of his dead space is 10.4 due to the credit of 1/5th of the 28 million(5.6), that will return to the 2011 salary cap.

  9. thesarcasm says: Mar 7, 2012 5:17 PM

    Even your update didn’t quite get it right… He can’t be treated as a June 1 cut because he’s not cut in the 2012 league year.

    His 2012 would have been 17
    His 2012 dead space cap hit is 10.4
    The net savings is 6.6.

  10. whatswiththehate says: Mar 7, 2012 5:32 PM

    It’s funny how much those who don’t make the money are always preoccupied by those who do.

  11. 2dollarpbrs says: Mar 7, 2012 5:36 PM

    but it isn’t about the money!?!?!?!?!

  12. slammincamnewton says: Mar 7, 2012 5:38 PM

    Jim Irsay is probably the NFL’s worst owner. Al Davis is dead and Jerry Jones no longer matters.

  13. deddmunnie says: Mar 7, 2012 5:50 PM

    Yeah Baby. My time of the year!

  14. joshmac982 says: Mar 7, 2012 5:53 PM

    I was told there would be no math

  15. notmanning says: Mar 7, 2012 6:05 PM

    Manning’s dead money for 2012 is 10.4 million. This was known long ago. He is off the books after 2012.

  16. jharmon64 says: Mar 7, 2012 6:15 PM

    Please explain “dead money”

  17. notmanning says: Mar 7, 2012 6:32 PM

    in 2012, even though PM will NOT be with the Colts, they will carry a cap hit of 10.4 million (prior signing bonus escalates and get pushed into 2012). So, even though Manning is NOT on the team, they have 10.4 million less to work with.

  18. wwwfella says: Mar 7, 2012 7:34 PM

    their paying dead people money now?

  19. jimmylions says: Mar 7, 2012 7:52 PM

    I get confused by all of the cap math.

    When another team signs Manning for 2012, will that impact the amount of dead money in the Colts cap?

  20. notmanning says: Mar 7, 2012 8:13 PM

    No….Manning’s dead cap number is what it is. Him signing elsewhere does nothing for the Colts.

  21. bigbadal21 says: Mar 7, 2012 9:10 PM

    Dead money is money already paid to a player but spread out over the length of the contract. It is not called dead money unless a player is released. A players prorated signing bonus portion for the current year plus his base pay is his cap number for that year.

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