Peyton Manning and the Broncos are close to an agreement that will see Peyton take a $4 million pay cut.

[oldunclemark]

Perhaps, this will be his last year, leaving no future to push that 10m, you wanted, out into.

dw and FX explain where the $10 mil could come from..

I highly doubt the Broncos redid Peyton's deal to clear up $4 million..that's kicker money..

They're opening up significant bucks...and I'm interested in who's coming to Denver

[Gramz]

[oldunclemark]

Apparentlty, according to the Denver Post,...

the $4 mil that was cut from Manning's 2015 contract can be made up by Peyton if he reaches 'team based incentives'

So the 'cut' clears cap space and may not cost Peyton anything.

Elway and Manning were last seen laughing as they were driving home

[ViriLudant]

I read that there are incentives that can allow him to reach the $19mil.

[ViriLudant]

Apparentlty, according to the Denver Post,...

the $4 mil that was cut from Manning's 2015 contract can be made up by Peyton if he reaches 'team based incentives'

So the 'cut' clears cap space and may not cost Peyton anything.

Elway and Manning were last seen laughing as they were driving home

Lol, sorry , you posted what I read, too. Hadn't read the 2nd page.

[Susie Q]

I read that there are incentives that can allow him to reach the $19mil.

Where is the link to what you read please .

[dgambill]

I'm sure the Broncos would love for him to reach the incentives for the 4 million. Likely a sb birth and win would pay him and if he is half the money grubber he would win the sb not for the ring but the money that everyone thinks he is about. If you read comments on the Broncos board the hatred for peyton runs deep. These guys despise him more than NE fans. Honestly I don't get people sometimes. I don't know all the details but this seems like a win win for the team and hopefully Elway surrounds him with a team good enough to give him another shot next year. IF they are healthy in the postseason and have a home game they will be a tough out. Looks like clady will be next on their list to rework.

[oldunclemark]

The Broncos just ran a 'game' on the NFL salary cap

'team based incentives' could be ..the AFC West title (which they've won 4 years in a row)

...The No.1 seed (which they won two years ago)..

.....or simply a 10-win season...which they've had 3 years in a row...

..and if, like dw says, the rewrite make the $15 mil....$6 mil salary and a 9 mil bonus..

Elway just cleared $10 mil without leaving the room..and Peyton didn't lose a dime

[dw49]

The Broncos just ran a 'game' on the NFL salary cap

'team based incentives' could be ..the AFC West title (which they've won 4 years in a row)

...The No.1 seed (which they won two years ago)..

.....or simply a 10-win season...which they've had 3 years in a row...

..and if, like dw says, the rewrite make the $15 mil....$6 mil salary and a 9 mil bonus..

Elway just cleared $10 mil without leaving the room..and Peyton didn't lose a dime

 

 

In all fairness , he will lose the 4 mill if he doesn't reach the incentives. Should be interesting to see what they are. Could be something like start a playoff game , which is 90 % attainable , or something like they reach the AFCCG and he throws over 30 tds. If something like the former , you're right it's a joke . They would just be pushing money into years without having a premier QB. I have a feeling the pay cut will prove to be more on the "legit side" as Manning should give a little on that 19 mill base. 

[oldunclemark]

You're right..one of the 'team=-based' incentives is probably winning the Super Bowl..

..but that's the only reason Manning is still playing anyway....If he earns back 3 mil but wins the Bowl..I doubt he'll mind

So Incentives clause money does not count against the cap?

That's a blueprint front great players to clear cap space for their team by giving back cash without really giving back most of it

....they can do the same thing with LT Ryan Clady ($11 and #12 mil)

[Fx Stryker]

Incentives are as followed:

He will get $2M back for winning AFCCG.

And $2M back for winning Super Bowl 50.

[oldunclemark]

Incentives are as followed:

He will get $2M back for winning AFCCG.

And $2M back for winning Super Bowl 50.

I take it back...

Those are not 'easy as candy' incentives...

But since they're the Broncos goal anyway...I can see why he agreed to them.

Got to give him credit....He's basically gambling $4 mil of his salary that Denver wins it all..

I like it

[amfootball]

Incentives are as followed:

He will get $2M back for winning AFCCG.

And $2M back for winning Super Bowl 50.

So he is taking the $4 mil pay cut.

[Fx Stryker]

So he is taking the $4 mil pay cut.

Not like joke couldn't be seen a mile away....

[buccolts]

So he is taking the $4 mil pay cut.

I certainly hope so, but not to your glee

[amfootball]

I give Elway credit. He somehow has Manning completely bought in to this new direction. You usually don't see this type of trust so soon. Even with Brady, he has been with the Pats forever and knows how they operate so the low market extension was a no brainer and he got the ring to boot. But for Manning to do this after Elway just changed up the coaching staff really speaks volumes about their relationship.

[oldunclemark]

they may have set this up 3 years ago

[jvan1973]

they may have set this up 3 years ago

I doubt that. they could have just structured it that way to begin with

[amfootball]

they may have set this up 3 years ago

They should have structured it differently from the start to compensate for these later years of Manning's career.

[lollygagger8]

So he is taking the $4 mil pay cut.

[King Colt]

If 200,000 Colt fans each bought just one large Papa Johns pie @ $20.00 we could bail Peyton out of a life of poverty. What say ye lads n' lasses? 

[chad72]

http://www.milehighreport.com/2015/3/5/8153079/horse-tracks-peyton-mannings-teammates-are-glad-to-have-him-back

 

 

Key words:

 

Manning will earn 2 million dollars back if the Broncos win the AFC Championship game, and another 2 million if the Broncos win the Super Bowl.

[HtownColt]

@Broncos: OFFICIAL: Peyton Manning is returning to the Denver #Broncos in 2015.

Well, I was wrong

[Fx Stryker]

@Broncos: OFFICIAL: Peyton Manning is returning to the Denver #Broncos in 2015.

Well, I was wrong

Surprising. /s

[GoPats]

http://www.milehighreport.com/2015/3/5/8153079/horse-tracks-peyton-mannings-teammates-are-glad-to-have-him-back

 

 

Key words:

 

Manning will earn 2 million dollars back if the Broncos win the AFC Championship game, and another 2 million if the Broncos win the Super Bowl.

 

Part of contracts I never understood very well... if there are incentives, I know that teams have to basically set that money aside and it counts toward their "real cash spent" budgets. But do incentives factor into cap numbers at all?

 

Say in a case like this... Denver ends up being $1M below the cap at the start of the season. They win the Super Bowl and owe Manning $4M. Does it get piled on to your cap number for the following season? Or not at all?

[Surge89]

Part of contracts I never understood very well... if there are incentives, I know that teams have to basically set that money aside and it counts toward their "real cash spent" budgets. But do incentives factor into cap numbers at all?

 

Say in a case like this... Denver ends up being $1M below the cap at the start of the season. They win the Super Bowl and owe Manning $4M. Does it get piled on to your cap number for the following season? Or not at all?

 

That's a really good question.  Anyone have any clue?  It just seems like you teams could abuse this type of situation repeatedly...

[oldunclemark]

I doubt that. they could have just structured it that way to begin with

, isn't that the same thing?

I think Peyton always planned on playing 5 years and his performance has certainly exceeeded any hopes I had in 2012

I really think they set this yup to re-do after 3 years.

[oldunclemark]

Part of contracts I never understood very well... if there are incentives, I know that teams have to basically set that money aside and it counts toward their "real cash spent" budgets. But do incentives factor into cap numbers at all?

 

Say in a case like this... Denver ends up being $1M below the cap at the start of the season. They win the Super Bowl and owe Manning $4M. Does it get piled on to your cap number for the following season? Or not at all?

That was my question....apparently incentive money does not count against the cap because its not salary or pre-paid bonus.

.....But I agree..it sounds like a shell game...

[Superman]

Part of contracts I never understood very well... if there are incentives, I know that teams have to basically set that money aside and it counts toward their "real cash spent" budgets. But do incentives factor into cap numbers at all?

 

Say in a case like this... Denver ends up being $1M below the cap at the start of the season. They win the Super Bowl and owe Manning $4M. Does it get piled on to your cap number for the following season? Or not at all?

 

Prepare yourself for a technical explanation:

 

If the incentive is considered "likely to be earned," (LTBE) then it counts against the cap proactively. If the incentive is not met, then the team gets a cap credit after the season. If the incentive is considered "not likely to be earned," (NLTBE), then it doesn't count against the cap proactively. If the incentive is met, then the team gets a cap debit after the season. If that incentive puts the team over the cap, then it's debited from the next year's cap. (With cap rollover, it's just a matter of semantics, really.)

 

An incentive is considered LTBE if the terms of that incentive were met in the previous season. It's NLTBE if the terms weren't met the previous season.

 

So, in this case, the Broncos didn't win the AFCCG, nor did they win the SB, so the incentives are NLTBE, and don't count against the cap going into the season. If they meet either of those terms in 2015, the incentives will be retroactively charged to the 2015 cap, or debited from the 2016 cap.

[GoPats]

That's a really good question.  Anyone have any clue?  It just seems like you teams could abuse this type of situation repeatedly...

 

 

That was my question....apparently incentive money does not count against the cap because its not salary or pre-paid bonus.

 

 

I agree and am surprised more teams don't structure incentive-laden contracts if that's the case. I guess the players may not want to risk future achievements or production against their income. 

 

Maybe we're also missing something and someone who's good with this aspect of the league (Superman, dw49) can straighten us out, lol...

[GoPats]

Prepare yourself for a technical explanation:

 

If the incentive is considered "likely to be earned," (LTBE) then it counts against the cap proactively. If the incentive is not met, then the team gets a cap credit after the season. If the incentive is considered "not likely to be earned," (NLTBE), then it doesn't count against the cap proactively. If the incentive is met, then the team gets a cap debit after the season. If that incentive puts the team over the cap, then it's debited from the next year's cap. (With cap rollover, it's just a matter of semantics, really.)

 

An incentive is considered LTBE if the terms of that incentive were met in the previous season. It's NLTBE if the terms weren't met the previous season.

 

So, in this case, the Broncos didn't win the AFCCG, nor did they win the SB, so the incentives are NLTBE, and don't count against the cap going into the season. If they meet either of those terms in 2015, the incentives will be retroactively charged to the 2015 cap, or debited from the 2016 cap.

 

Ask and ye shall receive! Thank you man. I knew you'd be all over this.

 

That's a pretty cool aspect of it. I guess there's SOME risk for Denver, but if you win a Super Bowl, having a $4M cap hit the following season is probably worth it right? 

[Superman]

Ask and ye shall receive! Thank you man. I knew you'd be all over this.

 

That's a pretty cool aspect of it. I guess there's SOME risk for Denver, but if you win a Super Bowl, having a $4M cap hit the following season is probably worth it right? 

 

Yup. Plus, the Broncos currently have $98m committed in 2016. That will be much higher by the time free agency is over, but they'll still be at least $10m or so under the projected cap. If it costs you an extra $4m to win the Super Bowl -- which you already had on the books, prior to yesterday -- oh well, right?

[amfootball]

Ask and ye shall receive! Thank you man. I knew you'd be all over this.

 

That's a pretty cool aspect of it. I guess there's SOME risk for Denver, but if you win a Super Bowl, having a $4M cap hit the following season is probably worth it right? 

There is but I am not sure what it really buys them. 4 mil is not a ton of money but there is some talk of restructure that would up it to 10 mil in savings. That makes more sense.

[GoPats]

There is but I am not sure what it really buys them. 4 mil is not a ton of money but there is some talk of restructure that would up it to 10 mil in savings. That makes more sense.

 

Yeah I don't know... the more I learn about the cap the less I feel like I really know about it. 

[Superman]

There is but I am not sure what it really buys them. 4 mil is not a ton of money but there is some talk of restructure that would up it to 10 mil in savings. That makes more sense.

 

If they didn't do that restructure yesterday, then it's not happening; you can only restructure once per 12 months. And aside from the tweet I posted yesterday, I haven't seen anything pointing to a restructure.

[amfootball]

If they didn't do that restructure yesterday, then it's not happening; you can only restructure once per 12 months. And aside from the tweet I posted yesterday, I haven't seen anything pointing to a restructure.

Wow. So it is only the $4 mil then? Why do you think Elway would push so hard for him to take such a small cut? I am not saying 4 mil is not significant for Manning but the Broncos had 20 mil to play with. Why make Manning give back 4?

[Superman]

Wow. So it is only the $4 mil then? Why do you think Elway would push so hard for him to take such a small cut? I am not saying 4 mil is not significant for Manning but the Broncos had 20 mil to play with. Why make Manning give back 4?

 

We'll never know the real nature of those negotiations. I don't know how hard Elway pushed for this to happen. Also, there may be more details that come out in the coming days. I'm only saying that there are no real reports about a restructure. 

 

As for the $4m, that can make a big difference. The Broncos like "pay as you go" contracts, not big signing bonuses. So that extra space might allow them to keep one of their guys without breaking their own rules about contract structure. Or if they are willing to break their rules, it might allow them to add a couple of guys. 

 

Also, like Brady's contract, the guaranteed money goes into escrow. So it's $4m extra in real cash for the Broncos. And if they adjusted the date of the guarantee, then the other $15m might be freed up, also. 

[amfootball]

We'll never know the real nature of those negotiations. I don't know how hard Elway pushed for this to happen. Also, there may be more details that come out in the coming days. I'm only saying that there are no real reports about a restructure. 

 

As for the $4m, that can make a big difference. The Broncos like "pay as you go" contracts, not big signing bonuses. So that extra space might allow them to keep one of their guys without breaking their own rules about contract structure. Or if they are willing to break their rules, it might allow them to add a couple of guys. 

 

Also, like Brady's contract, the guaranteed money goes into escrow. So it's $4m extra in real cash for the Broncos. And if they adjusted the date of the guarantee, then the other $15m might be freed up, also. 

You think Manning may have gave back his guarantee on the 15 mil? Wouldn't that have been reported?

 

I am not saying $4 mil is chump change but it does not seem like much to really help them when they were not up against the cap. But as you say probably best to wait and see what comes out about it over the next few days.

[Superman]

You think Manning may have gave back his guarantee on the 15 mil? Wouldn't that have been reported?

 

I am not saying $4 mil is chump change but it does not seem like much to really help them when they were not up against the cap. But as you say probably best to wait and see what comes out about it over the next few days.

 

Not given back. Maybe moved, to June 1? Frees up cash for an extra three months, through free agency. Just speculating... not even speculating, thinking out loud.

[oldunclemark]

Prepare yourself for a technical explanation:

 

If the incentive is considered "likely to be earned," (LTBE) then it counts against the cap proactively. If the incentive is not met, then the team gets a cap credit after the season. If the incentive is considered "not likely to be earned," (NLTBE), then it doesn't count against the cap proactively. If the incentive is met, then the team gets a cap debit after the season. If that incentive puts the team over the cap, then it's debited from the next year's cap. (With cap rollover, it's just a matter of semantics, really.)

 

An incentive is considered LTBE if the terms of that incentive were met in the previous season. It's NLTBE if the terms weren't met the previous season.

 

So, in this case, the Broncos didn't win the AFCCG, nor did they win the SB, so the incentives are NLTBE, and don't count against the cap going into the season. If they meet either of those terms in 2015, the incentives will be retroactively charged to the 2015 cap, or debited from the 2016 cap.

That is an amazing explaination....and I actually understand it.

Thanks, Supe!