Lombardi: Colts Will Try To Keep Manning

[Restored]

"Now that Peyton Manning has made tangible progress with his arm strength, NFL Network's Michael Lombardi believes the Colts will "try to keep him there if they can."

Per Lombardi, it will cost the Colts $16 million against the cap to release Manning versus $17 million to keep him. "The biggest difference, and this is huge for everyone to understand, is it would cost [Jim] Irsay $28 million to make that difference," explained Lombardi. "So it's a cash issue, not a cap issue." If Irsay does blink at the $28 million option by Friday's 4PM ET deadline, Manning will likely seek greener pastures."

More media foder but I figured people might be interested in his cap figures he's running.

Also, if someone could please link to the actual article I can't access the site at work. Thanks.

[The Fish]

Dialing Frog.

[GoColts8818]

With today's developments I think the Colts are going to annouce Thursday that they will not be picking up the option on Peyton Manning. From there I would not be shocked in the slightest if we wake up Friday or Saturday and see that Manning and the Colts have agreed to a new contract that will keep him in Indy.

Then this comes up which is completely different numbers of what it would costs against the cap to release him than had been reported all along. This just tells me no one really knows what is going on.

[Restored]

With today's developments I think the Colts are going to annouce Thursday that they will not be picking up the option on Peyton Manning. From there I would not be shocked in the slightest if we wake up Friday or Saturday and see that Manning and the Colts have agreed to a new contract that will keep him in Indy.

I think that same thing will happen but just a day sooner. Presser with annoucement tomorrow and the new contract deal on Thursday/Friday. Could happen either way though.

[colts8718]

"Now that Peyton Manning has made tangible progress with his arm strength, NFL Network's Michael Lombardi believes the Colts will "try to keep him there if they can."

Per Lombardi, it will cost the Colts $16 million against the cap to release Manning versus $17 million to keep him. "The biggest difference, and this is huge for everyone to understand, is it would cost [Jim] Irsay $28 million to make that difference," explained Lombardi. "So it's a cash issue, not a cap issue." If Irsay does blink at the $28 million option by Friday's 4PM ET deadline, Manning will likely seek greener pastures."

More media foder but I figured people might be interested in his cap figures he's running.

Also, if someone could please link to the actual article I can't access the site at work. Thanks.

COLTS need to move on im a big MANNING FAN but there are to many ? marks

[Fireman818]

What are todays developments?

[TubaGuy]

Here's a link to the comments...

http://www.rotoworld.com/headlines/nfl/229058/lombardi-colts-will-now-try-to-keep-manning

[Malakai432]

This is complete chaos and it's only Tuesday, LOL!!!! I could use some  &  = 

[FireJimCaldwell]

"Now that Peyton Manning has made tangible progress with his arm strength, NFL Network's Michael Lombardi believes the Colts will "try to keep him there if they can."

Per Lombardi, it will cost the Colts $16 million against the cap to release Manning versus $17 million to keep him. "The biggest difference, and this is huge for everyone to understand, is it would cost [Jim] Irsay $28 million to make that difference," explained Lombardi. "So it's a cash issue, not a cap issue." If Irsay does blink at the $28 million option by Friday's 4PM ET deadline, Manning will likely seek greener pastures."

More media foder but I figured people might be interested in his cap figures he's running.

Also, if someone could please link to the actual article I can't access the site at work. Thanks.

He's partially right.

Manning received a 20 million signing bonus for a 5 year deal which for cap accounting purposes is 4 years per. One of those seasons have been played which leaves 16 million of unamoirtized bonus dollars yet to be accounted for which would accelerate into the 2012 cap.

The part that he leaves out is that since the 28 million option bonus is due to be paid in the 2011 league year for accounting purposes it was prorated over 5 years, and 5.6 million of that was allocated in the 2011 salary cap.

If he's released that 5.6 million is treated as a cap credit for 2012.

One way to look at that is the 16.0 - 5.6 = 10.4 which is actual dead cap charge.

Or you would look at it adding 5.6 to the Colts cap and Manning counting 16 million.

He should have also pointed out that the deadline to pay Manning the 28 million option bonus and extending his contract is Thursday. The deadline to cut Manning to prevent from paying him the 28 million non-exercise fee is Friday 4pm. Two deadlines... Two completely different scenarios.

[Fireman818]

Thanks Tuba, just thought there was something I missed.

[Restored]

He's partially right.

Manning received a 20 million signing bonus for a 5 year deal which for cap accounting purposes is 4 years per. One of those seasons have been played which leaves 16 million of unamoirtized bonus dollars yet to be accounted for which would accelerate into the 2012 cap.

The part that he leaves out is that since the 28 million option bonus is due to be paid in the 2011 league year for accounting purposes it was prorated over 5 years, and 5.6 million of that was allocated in the 2011 salary cap.

If he's released that 5.6 million is treated as a cap credit for 2012.

One way to look at that is the 16.0 - 5.6 = 10.4 which is actual dead cap charge.

Or you would look at it adding 5.6 to the Colts cap and Manning counting 16 million.

So he costs 16 million towards THIS YEARS cap if we cut him and 17 or 18 if we keep him?

[MTC]

I just want Thursday (Or whenever the deadline is due) to happen already.

[FireJimCaldwell]

So he costs 16 million towards THIS YEARS cap if we cut him and 17 or 18 if we keep him?

I thought I answered that.

The net effect of releasing him is a 10.4 dead cap space hit. (16-5.6=10.4)

If he's on the roster it's 17.

[UndecidedFrog]

"Now that Peyton Manning has made tangible progress with his arm strength, NFL Network's Michael Lombardi believes the Colts will "try to keep him there if they can."

Per Lombardi, it will cost the Colts $16 million against the cap to release Manning versus $17 million to keep him. "The biggest difference, and this is huge for everyone to understand, is it would cost [Jim] Irsay $28 million to make that difference," explained Lombardi. "So it's a cash issue, not a cap issue." If Irsay does blink at the $28 million option by Friday's 4PM ET deadline, Manning will likely seek greener pastures."

More media foder but I figured people might be interested in his cap figures he's running.

Also, if someone could please link to the actual article I can't access the site at work. Thanks.

He is wrong with his figures. And I think I found out why. He forgot to subtract the credit of the amortized piece of the option bonus last year.

So the cost to the cap of cutting PM is $10.4 = ($16MM accelerated pieces of pro-rated signing bonus (20/5) - $5.6MM credit for the pro-rated piece of the option bonus not paid this year ($28/5))

[JoKeR]

Also the current contract has alot of guaranteed money, im sure. Irsay wants him on a incentive deal, so its not really about the option bonus.

[FireJimCaldwell]

Also the current contract has alot of guaranteed money, im sure. Irsay wants him on a incentive deal, so its not really about the option bonus.

I'm not sure what you mean by that, but the only guaranteed money in the contract was the signing bonus and the option bonus. The base salaries aren't.

[P-Money]

I just discovered the worst job in the market. A NFL salary cap accountant!! Hands down the most confusing job ever!

[FireJimCaldwell]

I just discovered the worst job in the market. A NFL salary cap accountant!! Hands down the most confusing job ever!

No, the cap accountant has it far easier than the CBA attorney.

[UndecidedFrog]

I'm not sure what you mean by that, but the only guaranteed money in the contract was the signing bonus and the option bonus. The base salaries aren't.

Yes. If the option bonus is paid before LY 2011 ends, PM will have received over 60% ($54.4MM) of the total contract value ($90MM) in the first year of the contract.

[FireJimCaldwell]

Yes. If the option bonus is paid before LY 2011 ends, PM will have received over 60% ($54.4MM) of the total contract value ($90MM) in the first year of the contract.

Okay

[Smonroe]

He is wrong with his figures. And I think I found out why. He forgot to subtract the credit of the amortized piece of the option bonus last year.

So the cost to the cap of cutting PM is $10.4 = ($16MM accelerated pieces of pro-rated signing bonus (20/5) - $5.6MM credit for the pro-rated piece of the option bonus not paid this year ($28/5))

You made that up! (j/k)

I'm not sure the NFL even knows what the team cap figure for 2012 is yet. It is interesting that all those guys who had Peyton cut in January are now saying he may stay.

[P-Money]

... Well whoever the person is that keeps track of all the teams caps should make more than any player!!

[FireJimCaldwell]

You made that up! (j/k)

I'm not sure the NFL even knows what the team cap figure for 2012 is yet. It is interesting that all those guys who had Peyton cut in January are now saying he may stay.

They haven't set the 2012 cap in stone.

Recent reports suggest that it might be slightly lower than the 120 million 2011 cap.

[Horse Shoe Heaven]

I just want Thursday (Or whenever the deadline is due) to happen already.

I am with you brother!!!!!!!!!!!! :ashamed: For an organization based on class this whole thing has been a joke!!!! My hope is we keep Peyton.

[FireJimCaldwell]

... Well whoever the person is that keeps track of all the teams caps should make more than any player!!

Once you know the formula, it's as easy as working on a personal budget:

Salary of x

mortgage of x

Car payment of x

etc

etc

etc

Some contracts are more complicated but for the most part most follow a general template.

[P-Money]

Thank God for excel huh?

[UndecidedFrog]

They haven't set the 2012 cap in stone.

Recent reports suggest that it might be slightly lower than the 120 million 2011 cap.

Which makes things tighter for my mock caps since I projected a 1% increase from the 2011 cap,

[FireJimCaldwell]

Thank God excel huh?

That does make it easier..

[FireJimCaldwell]

Which makes things tighter for my mock caps since I projected a 1% increase from the 2011 cap,

Very true.

[JoKeR]

I'm not sure what you mean by that, but the only guaranteed money in the contract was the signing bonus and the option bonus. The base salaries aren't.

so his base salary isn't guaranteed? What's the catch, that if he's on the roster he gets paid?

Im talking about a incentive deal where if he produces at a high level, he will be highly paid. If he doesnt then his base salary is little.

[seeblu]

If there were negotiations ongoing, we would have heard about it. Tom Condon and Jim Irsay would be telling us something about the negotiations, and it would be an incentive loaded contract. Jim Irsay is not going to sign any contract without that clause. It is "over rover". He has already done that and it cost him 26 Million to have Peyton on the sidelines last year.

[SilentHill]

"Now that Peyton Manning has made tangible progress with his arm strength, NFL Network's Michael Lombardi believes the Colts will "try to keep him there if they can."

Per Lombardi, it will cost the Colts $16 million against the cap to release Manning versus $17 million to keep him. "The biggest difference, and this is huge for everyone to understand, is it would cost [Jim] Irsay $28 million to make that difference," explained Lombardi. "So it's a cash issue, not a cap issue." If Irsay does blink at the $28 million option by Friday's 4PM ET deadline, Manning will likely seek greener pastures."

More media foder but I figured people might be interested in his cap figures he's running.

Also, if someone could please link to the actual article I can't access the site at work. Thanks.

The most important part which is not listed here is that the rest of Manning's contract also vests with this $28 million option. Meaning he is gonna get paid for the rest of his contract no matter what.

[FireJimCaldwell]

so his base salary isn't guaranteed? What's the catch, that if he's on the roster he gets paid?

Im talking about a incentive deal where if he produces at a high level, he will be highly paid. If he doesnt then his base salary is little.

If he's released, his base salaries vanish.

The lowest his base salary can be is 925k, based on his years of experience.

For 2012 if he's released and then resigned.

10.4 cap hit of dead space.

925k base salary at the very least(if he agrees to it).

There are two types of incentives.

LTBE are accounted for in the given year.

NLTBE are accounted for in the following year.

Since he didn't play last year all individual incentives are NLTBE.

Team incentives would be based on whether or not they were achieved last year or not.

[Restored]

If there were negotiations ongoing, we would have heard about it. Tom Condon and Jim Irsay would be telling us something about the negotiations, and it would be an incentive loaded contract. Jim Irsay is not going to sign any contract without that clause. It is "over rover". He has already done that and it cost him 26 Million to have Peyton on the sidelines last year.

Okay Mr. Entitlement

[FireJimCaldwell]

The most important part which is not listed here is that the rest of Manning's contract also vests with this $28 million option. Meaning he is gonna get paid for the rest of his contract no matter what.

Not quite.. They could still release/trade him at any point, which would have cap ramifications, but it doesn't vest the remaining years/salaries.

[SilentHill]

Not quite.. They could still release/trade him at any point, which would have cap ramifications, but it doesn't vest the remaining years/salaries.

And if he gets injured were on the hook. from what I understand we will be taking cap hits every year of his contract regardless if we have him or not based upon this 28 mil bonus.

[FireJimCaldwell]

And if he gets injured were on the hook.

For that given year I would say most likely. Following years, I would say no.

[JoKeR]

Gotcha Cleveland but what would the Colts be on the hook for if the Colts decided to pay the option and later in the season he had to suddenly retire?

I have also heard the Colts will be on the hook for the remainder but if the base salaries are not guaranteed ....

[FireJimCaldwell]

And if he gets injured were on the hook. from what I understand we will be taking cap hits every year of his contract regardless if we have him or not based upon this 28 mil bonus.

Say the bonus is paid.. he plays 2012 flawlessly.

2013 he suffers another injury and is placed on IR and is forced to retire after 2013. The 2014/15 salaries aren't paid, but the unamoritized bonus dollars would accelerate into the 2014 cap.

[SilentHill]

Say the bonus is paid.. he plays 2012 flawlessly.

2013 he suffers another injury and is placed on IR and is forced to retire after 2013. The 2014/15 salaries aren't paid, but the unamoritized bonus dollars would accelerate into the 2014 cap.

So correct me if i'm wrong. If the option bonus is not picked up (manning cut), we are on the cap for this year and this year alone.