Denver Native (Carol)
07-20-2016, 12:23 PM
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.
rest - http://www.9news.com/sports/nfl/denver-broncos/mike-klis/good-news-emmanuel-vons-1145-million-lowers-2016-cap-hit-by-28-million/277216898
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.
rest - http://www.9news.com/sports/nfl/denver-broncos/mike-klis/good-news-emmanuel-vons-1145-million-lowers-2016-cap-hit-by-28-million/277216898