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Cap Situation Going Forward
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grizmo78


Joined: 24 Dec 2008
Posts: 625
PostPosted: Thu Mar 13, 2014 11:34 pm    Post subject: Cap Situation Going Forward Reply with quote

DeMarcus Ware's Contract:

2014 total: $13 million (fully guaranteed)

2015
*$3.5 million salary (fully guaranteed)
*3.5 million salary (injury guarantee; converts to full skill/injury/cap guarantee on fifth day of free agency)
*2015 total: $7 million

2016 total: $10 million: 3 million of which becomes fully guaranteed after the 5th day of FA.

Summary: Basically this year is all guaranteed. Next year, 7 million is guaranteed but if he's cut before the 5th day of FA next year we'll only have 3.5 dead money against us. Third year can be cut before the 5th day of FA otherwise 3.5 million against the cap.

http://blogs.denverpost.com/broncos/2014/03/13/details-demarcus-wares-contract/26679/

T.J. Ward's Contract:

Summary:
2014: 7 million all guaranteed
2015: 6.5 million that becomes guaranteed after the 5th day of FA. If cut before hand, no dead weight against the cap.
2016 +2017: 4.5 million each season with nothing guaranteed

http://blogs.denverpost.com/broncos/2014/03/13/details-t-j-wards-contract/26676/

Aqib Talib's Contract:

Summary:
2014: 11.5 million all guaranteed. Add $31,250 for each game he plays in.
2015: 5.5 million that becomes fully guaranteed after the third day of FA. Add $31,250 for each game he plays in.
2016: 8.5 million that becomes fully guaranteed after the 3rd day of FA
2017: 11 million, no guarantees
2018: 11 million, no guarantees
2019: 8 million, no guarantees

http://blogs.denverpost.com/broncos/2014/03/13/details-aqib-talibs-contract/26669/

Together:
2014: 31.5 million
2015: 19 million
2016: 23 million (10 million from Ware can be cut with no cost to us)
2017: 15.5 million (15.5 million can be cleared from Ward and Talib with no cost to us)
2018: 11 million (All can be cleared from Talib with no cost)
2019: 8 million (All can be cleared from Talib with no cost)

What does this mean coming up??

For those everyone who is freaking out about how we'll be able to sign our own crop of FA's next year and the year after... We were extremely smart and front loaded most of these contracts when we have the most cap space now. Next year we will have much much more cap room and be able to sign DT (hopefully to his own front loaded contract), JT, Miller, etc.

In 2016, we can either keep Ware if he is still on top of his game, or cut him have 13 million on the books for both Ward and Talib. Again, this frees up room for new contracts, FA's, etc.

Not included in these numbers are Peyton Mannings numbers. Elway and Sullivan have masterfully constructed these contracts to keep us competing year in and year out without fear of being in cap hell from over paying old players, or dead money if players don't work out. In Elway we trust.

Lastly, If anyone wants a cool little cap calculator thing-a-ma-jig... http://overthecap.com/calculator/?Team=Broncos
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bobdevine


Joined: 24 Jan 2008
Posts: 2183
Location: Wisconsin
PostPosted: Fri Mar 14, 2014 2:01 am    Post subject: Reply with quote

Some big expenses that don't usually show up in salary cap calculations are reserves for injured players, development players, and rookie contracts. These accounting reserves probably total about $10-12million.

If the Broncos currently show about $8.5million in free cap space, that means they are maxed out on contracts for this year unless they free up some more money.

The Broncos front office seem to be doing a great job at juggling contracts. Rookie contracts don't get signed until May so the team won't lock down everything in March.
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Royal_VT


Joined: 30 Mar 2010
Posts: 811
Location: Blacksburg, VA
PostPosted: Fri Mar 14, 2014 7:12 am    Post subject: Reply with quote

I never really delved into the salary cap, which is surprising because i am a numbers guy, until this year. It is really fascinating. I started checking out ovethecap.com because of an argument. My friend said broncos are going to be horrible after Manning before these contracts, so i set forth to prove him wrong (he is a Redskins fan who has been hurt by FA a lot, so had a hard time grasping team friendly contracts).

As far as Talib, there is $2mil dead cap if we cut him after 3 years, and $1mil dead cap if we cut him after 4. The three year window can be referred to as 'The Manning Era' - his contract runs out, Ware's, and Talib is safe to cut after this time. I also love the TJ Ward contract, relatively cheap for an impact player at a position of need. Elway and co. really know what they are doing up there!

Correct me if I am wrong, but I heard the salary cap will increase an unprecedented amount for the 2015 season due to something with TV contracts? If this happens, I believe we will be able to sign the majority of our young talent to extensions. Yes, some players will walk (honestly have a weird feeling J Thomas is one of them - just a gut feeling), but this is not something that is uncommon.

IF Manning retires prior to his contract being up, we would be on for $2.5mil dead cap going into the 2016 season. About half of our young talent contracts expire after this year, and half after next year. If Manning does retire after 2015, we will probably have the flexibility to resign most of them.

Interesting contracts I found perusing the league -
Flacco cap hit 2016/2017 - $28/$31mil!!!
Calvin Johnson cap hit 2015-2017 - $20/$24/$21mil
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jsthomp2007


Joined: 11 Jan 2008
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Location: USA
PostPosted: Fri Mar 14, 2014 12:07 pm    Post subject: Reply with quote

I figure I would just let the suits in Washington to figure out this Cap Situation going forward.
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JerseysFinest27


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PostPosted: Fri Mar 14, 2014 5:13 pm    Post subject: Reply with quote

My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
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paul-mac


Joined: 12 Jul 2009
Posts: 8497
Location: Scotland
PostPosted: Fri Mar 14, 2014 5:24 pm    Post subject: Reply with quote

JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.
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broncospride95


Joined: 04 Feb 2010
Posts: 2319
Location: Chicago
PostPosted: Fri Mar 14, 2014 7:03 pm    Post subject: Reply with quote

paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.

So why don't all teams structure contracts in a way to minimize the risk? Why do teams get in cap hell? A team like the Cowboys would love to have Sullivan. C'mon man, pay credit where it's due. He structured these contracts brilliantly once again.
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germ-x


Joined: 06 Apr 2009
Posts: 7800
PostPosted: Fri Mar 14, 2014 8:22 pm    Post subject: Reply with quote

paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.


Lol, no they don't.
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JerseysFinest27


Joined: 07 Jan 2010
Posts: 8185
Location: New Jersey... Props to inDENguise on the sig
PostPosted: Sat Mar 15, 2014 9:29 am    Post subject: Reply with quote

broncospride95 wrote:
paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.

So why don't all teams structure contracts in a way to minimize the risk? Why do teams get in cap hell? A team like the Cowboys would love to have Sullivan. C'mon man, pay credit where it's due. He structured these contracts brilliantly once again.

Exactly.

Not every team has a contracts and cap guru. Main reason why he was hired by Elway. He was a players rep for a long time at Octagon, negotiating contracts on their end. Now hes on the teams side to negotiate in favor of the team. Thus the reason we have had incredibly structured contracts the last 2 years.
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BroncoinGermany


Joined: 09 Mar 2012
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Location: Deutschland
PostPosted: Sat Mar 15, 2014 9:59 am    Post subject: Reply with quote

JerseysFinest27 wrote:
broncospride95 wrote:
paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.

So why don't all teams structure contracts in a way to minimize the risk? Why do teams get in cap hell? A team like the Cowboys would love to have Sullivan. C'mon man, pay credit where it's due. He structured these contracts brilliantly once again.

Exactly.

Not every team has a contracts and cap guru. Main reason why he was hired by Elway. He was a players rep for a long time at Octagon, negotiating contracts on their end. Now hes on the teams side to negotiate in favor of the team. Thus the reason we have had incredibly structured contracts the last 2 years.


Exactly, paul-mac, bow down to the geeky face you see in my avatar!
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eddie mac


Joined: 27 Jan 2007
Posts: 6179
Location: Ireland
PostPosted: Sat Mar 15, 2014 10:05 am    Post subject: Reply with quote

paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.


Maybe not but you also have to convince those players and their agents to sign those deals in front of them. Sullivan and Elway are experts at this. Both the Ware and Talib deals are basically multiples of 1 year contracts with guarantees only hitting on the 5th day of each new league year.

They also dont mess around. They set a market value contract that we are comfortable with and if the player doesn't take it they just go to the next guy on their list, hence what happened with DRC, Revis and Talib then with Allen and Ware.

The contracts signed this offseason means there will be abundance cash/cap to re-sign anyone we want to in 2015 dependant on our valuation of a fair deal for the Franchise.

Hence the Management had already moved on from the likes of Decker, Beadles, Woodyard weeks ago, if they even considered re-signing them cos reportedly no offers were made.

I dont think any GM has ever signed 3 All-Pro Free Agents in a capped offseason.
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AKRNA


Joined: 28 May 2008
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PostPosted: Mon Mar 17, 2014 3:34 pm    Post subject: Reply with quote

I have to admit I was one of those who panicked at the initial signings. call it a residual effect of Shanny's FA, deferred bonus signings that led us into 8 figure "dead" money on an annual basis.

Looking at how these are structured however, all I can say is "it's brilliant!"

Kudo's to Sullivan and Elway. Any mistakes made won't haunt us for years. Medium risk , high reward and in no way does it affect their plan for future years.

These guys really look ahead!
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germ-x


Joined: 06 Apr 2009
Posts: 7800
PostPosted: Thu Mar 20, 2014 9:42 pm    Post subject: Reply with quote

AKRNA wrote:
I have to admit I was one of those who panicked at the initial signings. call it a residual effect of Shanny's FA, deferred bonus signings that led us into 8 figure "dead" money on an annual basis.

Looking at how these are structured however, all I can say is "it's brilliant!"

Kudo's to Sullivan and Elway. Any mistakes made won't haunt us for years. Medium risk , high reward and in no way does it affect their plan for future years.

These guys really look ahead!


I agree with this.

I also don't think Elway is going to sacrifice the future of the Broncos for a year or 2 of winning. He'll do the most he can, but i think the Osweiler pick goes to show that Elway is about being contender's now while also making moves to try and keep this team competitive in the future. Remember when Broncos fans were upset that the Osweiler pick wasn't a pick that could help Denver right now? Now there is worry that Elway isn't making moves that can help this team in the future. With some people you can just never win.

Another point is that Elway and the rest of the front office have done a great job in the draft. Honestly, aside from the 3rd round in years 1 and 2, Denver has made some excellent draft choices. Those choices range from Von Miller at #2 to Julius Thomas in the 4th to Danny Trevathan in the 6th to Chris Harris as a UDFA. This is something that, overall, Mike Shanahan failed to do post 1998.

Personally, i'm not too worried about Denver with Elway at the helm. I think he has surrounded himself with excellent football minds and uses them to help built a quality team. The entrance of Osweiler could be a bit bumpy simply because he is an unknown at the most important position, but i have faith that Elway will keep the ship steady in those early years.
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BroncsDominate


Joined: 15 Dec 2008
Posts: 985
Location: Fishing at Standley Lake
PostPosted: Fri Mar 21, 2014 2:25 am    Post subject: Reply with quote

paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.


Spoken by a true genius.
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broncos67


Joined: 28 Dec 2006
Posts: 21544
Location: Conshohocken
PostPosted: Fri Mar 21, 2014 6:45 am    Post subject: Reply with quote

paul-mac wrote:
JerseysFinest27 wrote:
My man Mike Sullivan is a cap guru. I loved that hire from the beginning.
lol, a cap guru.



First of all Brian Xanders was almost "a cap guru"



And secondly typing some numbers into a spreadsheet isn't that hard. Anyone that's been heavily involved with FFMD and plays madden knows how to work the cap.


I'm sure Mike Sullivan found success because of his hours being an armchair GM and using some spreadsheet template he found online.

Give me a break dude. Why don't you go apply for a job like that then since your FFMD knowledge obviously has you ready?
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