Manning’s contract doesn’t change, league’s treatment of it does

AP

On Friday morning, we reported that Peyton Manning’s supposedly “renegotiated” contract resulted in no actual renegotiation.  The deal merely was tweaked to reflect that the Broncos had purchased $10 million of insurance, aimed at protecting the Broncos against the possibility of paying Manning $20 million in 2014 for not playing due to a non-neck injury suffered in 2013.

A source with knowledge of the situation has reiterated to PFT that, despite reports elsewhere to the contrary, the deal did not change.  However, the NFL’s interpretation of it did.

Manning’s original deal contains a $5 million salary advance of 2013 pay and a $5 million salary advance for 2014 compensation.  The league initially didn’t treat the advances as signing bonuses, which gets prorated.

The new deal, which didn’t change the payments or the structure of the deal, prompted the NFL to treat the payments differently.  As a result, the league has applied the $10 million in salary advances in $2.5 million equal chunks over the final four years of the contract.   The cap numbers for 2013 and 2014 have dropped from $20 million to $17.5 million, and the cap numbers for 2015 and 2016 have jumped from $19 million to $21.5 million.

To illustrate the league’s adjusted valuation of the deal, Manning’s initial contract included a $6 million salary advance in 2012, but the NFL didn’t spread that amount over the five years of the contract when the deal was processed.  Instead, the salary advance was included within the $18 million base salary/cap number for 2012.

So the deal in no way changed.  But the league’s new treatment of it gives the Broncos some unexpected cap relief in 2013 and 2014.

16 responses to “Manning’s contract doesn’t change, league’s treatment of it does

  1. what Peyton really needs to worry about is hali and Houston blitzing off the edges when he plays the chiefs

  2. It must be nice to have the commish a as friend. He burns the Pats tapes, & gives cap relief to the Broncos. but if you make him mad he’ll fictionalize bountygate or dumping salaries to shake his finger at you.

  3. Nobody has anything to worry about when playing the Chiefs, and the only fiction about bountygate is that it’s over – the saints are setting it up right now.

  4. yeah nobody should worry about playing the chiefs, its not like their outside linebackers are pro bowlers or anything

  5. Chiefs fans really should save their strutting and boasting until their team has won more games than they did last year.

  6. This shows the importance in today’s NFL of a savvy capologist. Mike Sullivan is Denver’s, I believe. We’ve seen several teams improve greatly with improvement at that unique position, including Miami since Dawn Aponte has become more of a factor.

    Look at what Oakland did the last few years as Al Davis (understandably, as his life was coming to an end) desperately did everything and anything for One Last Run….compared to what McKenzie and his staff are doing to prepare for a 2014 rebuild, even adding potentially valuable pieces despite no cap flexibility.

    Handling the cap has become as important who a team signs or drafts. This move by Denver could be a June 1st addition they couldn’t afford otherwise, or rollover money that allows them to keep someone they might have otherwise lost.

    Failure to be as precise will likely doom some teams.

  7. Manning is one of the few players I never judge when it comes to compensation, he gives you a chance every week to win games…and he will get a nice back scratch here and there from the league office, he’s the football Jesus of his era. Nothing bad to say about the dude honestly.

  8. I hate to say it but simply watch. Manning will not last the entire season due to his age and the Denver cold weather. Professional sports are a young mans game more than ever before. I’ll be happy for Elway and sad for Manning. His thing will become very Farve like.

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