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Good news Emmanuel: Von's record contract gives Broncos more 2016 cap space

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  • Good news Emmanuel: Von's record contract gives Broncos more 2016 cap space

    For those of us apprehensive of compromising our cap's number by making the highest paid defensive player, have a read.


    KUSA - Even while paying out the largest contract in franchise history, the Denver Broncos managed to pinch a few pennies on their 2016 budget.

    In the funny math that is the NFL salary cap system, Von Miller’s six-year, $114.5 million contract lowered his 2016-season cap number.

    As Miller sat on his exclusive franchise from March 1 until July 14 he was carrying a cap number of $14.26 number.

    Although Miller’s new deal pays him $25.5 million in cash this year, his cap number for 2016 dropped to $11.4.

    That’s a $2.86 million savings in cap space. Emmanuel Sanders, next man up.

    How such a monstrous contract can reduced the Year One cap hit? Because signing bonuses are prorated. So while Miller will get $17 million in cash from a signing bonus this year, it counts only $3.4 million against the cap and for each of the next four seasons of his deal. (Although Miller’s contract is six years, signing bonuses can be prorated for no more than five years.)

    The details of Miller’s contract were first reported last Friday by 9NEWS. There is one small change: Although Miller didn’t work out during this past offseason, he will collect a $500,000 workout bonus in March 2017. That workout bonus counts against his 2016 payout so Miller is on the books for $25.5 million in year one and $16.5 million in year two – instead of $25 million and $17 million.

    The official breakdown of Miller’s contract as reported to the NFL Players Association on Tuesday:

    2016: $17 million signing bonus; $6 million roster bonus (to be paid tomorrow, July 20); $2 million salary. $500,000 workout bonus paid in March 2017. All $25.5 million is fully guaranteed. Cap hit: $11.4 million. The NFL’s previous highest-paid defensive player, Miami’s Ndamukong Suh, got $26.5 million in year one. (Advantage: Suh by $1 million)

    2017: Miller will receive a $16.5 million salary, fully guaranteed, for a two-year, $42 million total. Cap hit: $20 million. Ndamukong Suh got $24 million in year two (since restructured), for a two-year total of $50.5 million. (Advantage: Suh by $8.5 million).

    2018: Miller will get an $18.5 million salary, fully guaranteed a year earlier, in March 2017 – or 7 ½ months from now. He has another $500,000 workout bonus for a total of $19 million, or $61 million over three years. Cap hit: $22.5 million. Suh initially got $10 million in year three, for a three-year total of $60 million. (Advantage: Miller by $1 million).

    2019: Miller will get a $17 million salary, with $9 million fully guaranteed a year earlier in March 2018, plus $500,000 workout bonus for $17.5 million. That’s a four-year total of $78.5 million. Cap hit: $21 million. Suh got $17 million in year four, or $77 million over four years. (Advantage: Miller by $1.5 million).

    2020: Miller gets a $17.5 million base salary plus a $500,000 workout bonus for $18 million. None of it is guaranteed although there is a $6 million guaranteed option on salary if picked up on fifth day of 2020 league year. This $6 million doesn’t count in NFLPA guarantee definition. Cap hit: $21.5 million. This is $96.5 million over five years. Suh was to get $19 million in year five, or $96 million over five years. (Advantage: Miller by $500,000)

    2021: Miller gets a $17.5 million base salary and a $500,000 workout bonus for $18 million. None of it is guaranteed although there is an option guarantee of $7 million on the fifth day of the league year. That’s a six-year total of $114.5 million. Cap hit: $18 million.Suh gets $18.375 million in year six, for a six-year total of $114.375 million. (Advantage: Miller by $125,000).

    Copyright 2016 KUSA

    http://www.9news.com/sports/nfl/denv...lion/277216898

  • #2
    Elway clearly wasn't one of those college football superstars who slept his way through business and economics classes
    "There is no plan B. Plan A is to win the Super Bowl" - John Elway
    PLAN A ACCOMPLISHED 2/7/16!!!
    LSU 15-0 2019 BCS Champions...Geaux Tigers :dance:

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    • #3
      Don't you mean Mike Sullivan? He's the one who actually negotiates the contracts of behalf of the Broncos and is responsible for managing our salary cap.

      Comment


      • #4
        Originally posted by ramanboy33 View Post
        Don't you mean Mike Sullivan? He's the one who actually negotiates the contracts of behalf of the Broncos and is responsible for managing our salary cap.
        Pretty sure that if that is actually true of him negotiating it is at the direction of John. John would give him the general numbers and then IF he does the actual face to face with the agent. It is the grunt work.

        He is the capoligist and has done a great job but make no mistake it is John and Joe that make the final YEA on all money deals.

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        • #5
          Originally posted by Garfield View Post
          Pretty sure that if that is actually true of him negotiating it is at the direction of John. John would give him the general numbers and then IF he does the actual face to face with the agent. It is the grunt work.

          He is the capoligist and has done a great job but make no mistake it is John and Joe that make the final YEA on all money deals.

          Dont want to get shot down for blasphemy here as I understand in Broncos country Elway=god but This is actually Mike Sullivan's work of genius here guys as far as cap management goes.But I guess god(Elway)has worked his magic here aswell in the sense that the guy who hired Sullivan( from memory) was god himself.

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          • #6
            Originally posted by AussieBronco76 View Post
            Dont want to get shot down for blasphemy here as I understand in Broncos country Elway=god but This is actually Mike Sullivan's work of genius here guys as far as cap management goes.But I guess god(Elway)has worked his magic here aswell in the sense that the guy who hired Sullivan( from memory) was god himself.
            Agree. Capoligist Mike Sullivan is great at his job. Of course Elway gives him general direction. There are many teams with crappy capologists that end up painting themselves into corners. It also does help that the Denver Broncos is a team that players WANT to come to. (Who the heck WANTS to go to Jacksonville without getting major PAID?)

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            • #7
              Ole Sullivan works that magic but don't discount Elway. He brings the talent and all the pieces together so the team as a whole is a massive success. That in itself is what has made Elway's genius so valuable and previously an unknown commodity. When we landed Sullivan it was a big piece of the whole puzzle.

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              • #8
                Originally posted by // / yardo View Post
                Ole Sullivan works that magic but don't discount Elway. He brings the talent and all the pieces together so the team as a whole is a massive success. That in itself is what has made Elway's genius so valuable and previously an unknown commodity. When we landed Sullivan it was a big piece of the whole puzzle.
                Of course! Definitely not discounting all the amazing work Elway has done.

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                • #9
                  I am not sure this cap room space really helps Sanders, since he is contracted through 2016 anyway, I guess if they "restructured" 2016 he could get a little more for 2016? The main goal as I see it is to get Sanders under contract past 2016, that doesn't necessarily need to affect his contract numbers for 2016. It is going to be 2017 and beyond that he will need a contract that can fit the salary cap space, Von is scheduled to count for 20M in 2017 ... fortunately the limit will be going up.
                  sigpic

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                  • #10
                    Gee, which Stanford graduate in Economics hired Mike Sullivan? Is it the same businessman who parlayed an auto dealership into an $87 million dollar sale to Huizenga? Why yes, I believe it was.

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