Peyton Manning’s (New) Contract

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Posted by bernreuther on March 21, 2012 at 10:19 am

Well, now there’s even more proof of the genius of Tom Condon, the super agent that makes self-declared super agent Drew Rosenhaus look like a child.

Less than nine months after he secured an injured Peyton Manning a $26.4 million payout, breaking hearts in Indiana and nationwide in the process, he has now negotiated a bigger and better deal for his client, who is now going to be locked in for another year for even more money!

This contract, which I must repeat is for a player who missed all of last year and will be 40 when it ends in 2016, is for 5 years and a whopping $96 million, eclipsing the previous contract’s 5/90 total that was unrealized. Coming off a one year $26.4 million deal in reality, Manning now has signed a 1 year deal with $18 million guaranteed (all salary), after which (if he is on the roster at the end of the 2012 league year, on March 11, 2013) a new guarantee will kick in and net him  a total of $38 million guaranteed for all injury for 2013-2014 and $58 guaranteed through 2015 if he doesn’t have a neck injury in 2013. If he is on the roster at the end of the 2014 league year, his 2015 salary becomes guaranteed at $19. The same is true the following year.

So there are no bonuses and no tricks: Manning gets paid $18 million in 2012 whether he plays or not. The Broncos can cut him before March 11, 2013 and owe nothing more. Otherwise they owe $40 million for the next two seasons and then have the option to cut him or pay him $19m before each of the next two seasons. If he can play in 2012, it’s likely that the total, barring retirement or a total dropoff, will be the full $96 million over five years, ending when he is 40 years old.

This is, for sure, a more team-friendly deal for the Broncos than the one he signed in July 2011 with the Colts, who will be eating $10.4 in dead money in 2012, had to cut a legend, and already suffered through one bad season and may have to weather another one or two more before contending again. But it’s still a giant contract for a player coming off a series of surgeries, with major question marks, who will be 40 at the end of the term. It’s not a big win for the Broncos financially. And it makes me wonder why exactly John Elway made a big show of firing a very well qualified and loyal executive in Mike Bluem recently (coincidentally, he was hired by the Colts last week) in order to hire a “bulldog” of a negotiator (former agent Mike Sullivan), only to see his shark negotiator get run over writing a deal that any of us could easily have done just as well.

 

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