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View Full Version : Broncos salary cap, dead money (MHR)


Rulon Velvet Jones
07-26-2011, 11:34 AM
http://www.milehighreport.com/2011/7/26/2295248/denver-broncos-wont-count-dead-money-towards-2011-salary-cap-figure

Article 11 of the new CBA contains the rules that will allow the league to transition into the new league year, and buried among the many items within it is the following subsection:



Section 5. Salaries and Salary Cap Accounting:

....(b) Proration From Preexisting Contracts. ....(i) No signing bonus proration to the League Years of this Agreement shall apply for any Preexisting Contract that was terminated, traded or assigned via waivers prior to March 11, 2011....

What this means for Denver is that the proration cap penalty of Jamal Williams, Justin Bannan, and Daniel Graham, who were all cut on March 3rd will not apply.

This frees up $11.676million to be used immediately in free agency, though the approximate cap hit of $900,000 for Correll Buckhalter will still apply (total cap savings of $1.45mil from cutting Buck)

The salary cap breakdown for the Broncos continues after the jump...



Denver's current position against the cap (top 51 salaries) is approximately $100.55mil against a total cap of $120mil. However, we still need to sign our rookies, at an estimated $5.024mil. That will supplant the bottom salaries of the 51, which offset it by about $3.6mil total , so we can expect that signing our rookies will put us at about $101.974 against the cap.

Additionally, Prater and Woodyard are officially signed to their tenders, which are 2nd round tenders and will be treated as $2mil qualifying offers until they renegotiate contract extensions. That $4mil total will be offset by approx. $900,000 in bottom end contracts, for a total against-the-cap adjustment of $3.1 mil. Total Salary cap number at this juncture is approximately $105.074mil.

The following items can be accounted at this point as well:

$3mil cap credit for 3 players making a minimum of $1mil over the minimum wage and having at least 5 years of accrued service. The player must remain on a roster designation (PUP counts) and the team will get docked a weekly prorated amount from the credit for every week the player is not on the roster. In short, whomever gets the credit, don't cut them. This credit will get prorated on the team's terms over the course of the 2014-2017 league years.
$3.76mil performance contract adjustment for Brian Dawkins. This isn't etched in stone, but it would be very surprising if it didn't go through.
So until further notice, the Broncos are sitting at $98.314mil against a $120mil cap. That equals $21.686mil in room to spend in free agency. Still to come are decisions on Kyle Orton ($8.87mil) and several other vets. Stay tuned to MHR for the latest.

TheReverend
07-26-2011, 11:42 AM
Repped. Thanks for posting some clarification.

ChrisToker
07-26-2011, 11:44 AM
Please let that be accurate. I have heard that we were way over 120M cap, others that just 700K under, pretty much all over the place. So if we have 15M after signing rookies, we can make a splash in FA. Plus restructure Dawkins contract trade KO we get another 10+Mil of the books.

Tombstone RJ
07-26-2011, 11:47 AM
http://www.milehighreport.com/2011/7/26/2295248/denver-broncos-wont-count-dead-money-towards-2011-salary-cap-figure

Article 11 of the new CBA contains the rules that will allow the league to transition into the new league year, and buried among the many items within it is the following subsection:



Section 5. Salaries and Salary Cap Accounting:

....(b) Proration From Preexisting Contracts. ....(i) No signing bonus proration to the League Years of this Agreement shall apply for any Preexisting Contract that was terminated, traded or assigned via waivers prior to March 11, 2011....

What this means for Denver is that the proration cap penalty of Jamal Williams, Justin Bannan, and Daniel Graham, who were all cut on March 3rd will not apply.

This frees up $11.676million to be used immediately in free agency, though the approximate cap hit of $900,000 for Correll Buckhalter will still apply (total cap savings of $1.45mil from cutting Buck)

The salary cap breakdown for the Broncos continues after the jump...



Denver's current position against the cap (top 51 salaries) is approximately $100.55mil against a total cap of $120mil. However, we still need to sign our rookies, at an estimated $5.024mil. That will supplant the bottom salaries of the 51, which offset it by about $3.6mil total , so we can expect that signing our rookies will put us at about $101.974 against the cap.

Additionally, Prater and Woodyard are officially signed to their tenders, which are 2nd round tenders and will be treated as $2mil qualifying offers until they renegotiate contract extensions. That $4mil total will be offset by approx. $900,000 in bottom end contracts, for a total against-the-cap adjustment of $3.1 mil. Total Salary cap number at this juncture is approximately $105.074mil.

The following items can be accounted at this point as well:

$3mil cap credit for 3 players making a minimum of $1mil over the minimum wage and having at least 5 years of accrued service. The player must remain on a roster designation (PUP counts) and the team will get docked a weekly prorated amount from the credit for every week the player is not on the roster. In short, whomever gets the credit, don't cut them. This credit will get prorated on the team's terms over the course of the 2014-2017 league years.
$3.76mil performance contract adjustment for Brian Dawkins. This isn't etched in stone, but it would be very surprising if it didn't go through.
So until further notice, the Broncos are sitting at $98.314mil against a $120mil cap. That equals $21.686mil in room to spend in free agency. Still to come are decisions on Kyle Orton ($8.87mil) and several other vets. Stay tuned to MHR for the latest.

lots of cap room, no excuse not to get Mebane and/or Coefield

Popcorn Sutton
07-26-2011, 11:59 AM
Nice article from MHR. Thanks for posting!

diehardbroncosfan
07-26-2011, 12:22 PM
This makes free agency a whole new ballgame for us, especially if we get rid of Orton's salary. We have no excuse not to make a big splash ala Mebane now.

Gcver2ver3
07-26-2011, 12:27 PM
22 mil in cap room?...and without even restructuring contracts yet?...

wow, that changes the game...

Lev Vyvanse
07-26-2011, 12:30 PM
Denver's current position against the cap (top 51 salaries) is approximately $100.55mil against a total cap of $120mil. However, we still need to sign our rookies, at an estimated $5.024mil. That will supplant the bottom salaries of the 51, which offset it by about $3.6mil total , so we can expect that signing our rookies will put us at about $101.974 against the cap.



That seems about right for Miller. What about the other draft picks?

Kaylore
07-26-2011, 12:32 PM
I feel better reading this. Someone was throwing around the $1 mil number.

BroncoInferno
07-26-2011, 12:36 PM
lots of cap room, no excuse not to get Mebane and/or Corbin

Well, sure there is. Mebane and/or Corbin may prefer to stay with their current clubs even at a bit less money, or they may want to sign with a team that they perceive to be a more serious contender than Denver even at a bit less money. I hope we land at least one of them, but offering them the most money does not necessarily guarantee that.

Lev Vyvanse
07-26-2011, 01:03 PM
It looks like the rookie allocation for the Broncos is $8.118M. So that number is at least 3M high.

Kaylore
07-26-2011, 01:06 PM
Well, sure there is. Mebane and/or Corbin may prefer to stay with their current clubs even at a bit less money, or they may want to sign with a team that they perceive to be a more serious contender than Denver even at a bit less money. I hope we land at least one of them, but offering them the most money does not necessarily guarantee that.

http://www.connollyco.com/discography/talking_heads/stop7_hi.jpg

eddie mac
07-26-2011, 01:10 PM
I always said that dead money would be irrelevant yet Legwold at the Post kept on stating it would count.

Killericon
07-26-2011, 01:42 PM
That seems about right for Miller. What about the other draft picks?

Well, how much do we know about the new rookie pay scale? Maybe that's good for all of the rookies...

Lev Vyvanse
07-26-2011, 01:55 PM
Well, how much do we know about the new rookie pay scale? Maybe that's good for all of the rookies...

One year rookie allocation can be found here:
http://www.macsfootballblog.com/2011/07/2011-year-one-rookie-allocation-numbers.html

The article of the CBA for rookie compensation can be found here:
http://bizoffootball.com/docs/Article%207%20Rookie%20Compensation.pdf

broncosteven
07-26-2011, 02:06 PM
I feel better reading this. Someone was throwing around the $1 mil number.

Aaron Francisco?













LOL

BroncoMan4ever
07-26-2011, 02:37 PM
nice and with the coming trade of Orton and more than likely restructuring of other players and not just dawkins, we could potentially be looking at about 30 million in available cash to spend in FA.

get some DT in here now!!

maher_tyler
07-26-2011, 02:42 PM
I heard on NFLN that the cap was raised $3M making the cap ceiling $123M...

Lev Vyvanse
07-26-2011, 02:55 PM
I heard on NFLN that the cap was raised $3M making the cap ceiling $123M...

I'm sure what they are talking about is the cap credit. Thats already been factored into the above post.

Broncoman13
07-26-2011, 03:27 PM
That is friggin awesome if true.... Please let it be true!!!

epicSocialism4tw
07-26-2011, 03:29 PM
Fantastic.

That puts us in the hunt for the top DT on the market, and DeAngelo Williams as well.

I bet thats what we come away with, and I wouldn't be surprised at all if we managed to score a TE as well.

eddie mac
07-26-2011, 03:44 PM
I heard on NFLN that the cap was raised $3M making the cap ceiling $123M...

It's actually $126.35m when you utilise all the veteran loopholes.

ward63
07-26-2011, 06:17 PM
I miss the days of the mid-to-late 90's. Not just b/c of the winning tradition and championships, but the front office could go in and ask Rod, Eddie, TD, John, etc. to take a pay cut and restructure to make the team better.

Tombstone RJ
07-27-2011, 08:18 AM
Well, sure there is. Mebane and/or Corbin may prefer to stay with their current clubs even at a bit less money, or they may want to sign with a team that they perceive to be a more serious contender than Denver even at a bit less money. I hope we land at least one of them, but offering them the most money does not necessarily guarantee that.

I generally tend to think that money talks and when it comes to FA, the team who offers the most money lands the FA. Mebane is young so he's gonna want the big paycheck. If he was 34 and wanting a ring or something then yah, maybe he takes less and goes with the team that looks like it has a good chance for a championship. Otherwise, it's all about the benjamin's...

Killericon
07-27-2011, 08:29 AM
I miss the days of the mid-to-late 90's. Not just b/c of the winning tradition and championships, but the front office could go in and ask Rod, Eddie, TD, John, etc. to take a pay cut and restructure to make the team better.

That's related to the winning tradition, FYI, but Dawkins is restructuring.