Monday, February 11, 2013

Broncos, John Elway have enough room to play smart in NFL free agency

D.J. Williams. (The Associated Press)

Today's question about the Broncos comes from Estuardo Zepeda from Mexico:

Q: Is there any chance that the highest-paid Broncos (Elvis Dumervil, Champ Bailey, Peyton Manning) restructure their deals to provide more flexibility to the team? And with Wesley Woodyard on board, is D.J. Williams out? What salary cap penalties would apply if the Broncos cut him?

A: Estuardo, there is always a chance a team asks its highest-paid players to re-structure deals to help its cause, but the Broncos aren't in dire cap circumstances compared to some in the league.

They aren't among the teams with the most room either, but they have room to do a few things if they wish.

A look at the figures, before they've made any roster moves heading into free agency, shows they have roughly $14 million to $15 million worth of room if an $11.5 million "rollover" from this year is included and some pending bonuses are added in. With the collective bargaining agreement signed in 2011, teams have the option of rolling over cap room from the previous year into the next year.

It aided the Broncos' ability to sign Manning before this past season and will constitute the bulk of their cap room this year.

A look through their contract figures shows they sit at $119.6 million worth of cap commitments right now, including all bonuses, for the 2013 season. The salary cap won't officially be set for another few weeks, but most in the league expect a pretty flat increase compared to this past season.

In 2012 the salary cap was just above $120 million per team and it is expected to come in at around $121.1 million per team in the coming year. So, the Broncos will certainly make a few cuts, re-do a deal or two to trim the $119.6 worth of commitments before free agency opens and will have the ability to add the rollover room.

The Broncos also have very little dead money at the moment ? 2013 salary cap money committed to players no longer on the roster. They come in at less than $100,000 in dead money. That shows the fruits of a draft-first strategy and why the team has used far more one-year deals with late signings in free agency than other teams.

As of last week, there were nine teams above the projected salary cap for 2013, including the NFC champion 49ers. The Jets are in the worst cap shape for the upcoming year, with the Saints and Cowboys not far behind ? all are already at least $20 million over the projected cap figure.

The playoff teams in the best shape are Cincinnati and Indianapolis with both having at least $40 million worth of room if they use all of the rollover space available to them.

So, the Broncos are on solid footing, especially for a 13-win team. They have the ability to keep themselves in the playoff mix if they continue to carefully use their cap room and, as John Elway puts it, "stack good draft on good draft."

If they use the franchise tag on left tackle Ryan Clady, that's a guaranteed one-year deal for $9.66 million, so that's a big chunk of the current room if they don't elect to go with a long-term deal given his recent shoulder surgery.

Their biggest cap hits, beyond Manning, come on defense. Bailey's cap figure for 2013 is $10 million, including roster and workout bonuses. Dumervil has a $13.623 million cap figure, including a $10 million base salary, which the Broncos could turn into signing bonus in some way if they try to re-structure.

Also with the Broncos is former high-profile agent Michael Sullivan, who oversees the Broncos' work with contracts and the salary cap. Sullivan is highly-regarded in the league for his abilities.

Overall, D.J. Williams' status will certainly be addressed in some way, either by his release or a significant contract reduction. He was a situational player only last season who missed nine games because of two league suspensions.

His cap figure for 2013 is $7.732 million ? the final year of his deal ? that includes a $6 million base salary. The Broncos re-did the deal some in 2010, converting a portion of a roster bonus into signing bonus.

If they release Williams, he would carry $1.732 million cap charge for the remaining pro-rated amount of his signing bonus. But that is a savings of $6 million over his cap charge if he's on the roster, so it's a move they would certainly consider.

Since the start of the 2010 season Williams has earned $13.57 million in base salary alone from the Broncos ? a total that doesn't include any of his signing bonunses. He was not starter when he returned from suspensions and has not earned a Pro Bowl nod in any season.

Jeff Legwold: jlegwold@denverpost.com or twitter.com/jeff_legwold

Source: http://www.denverpost.com/broncos/ci_22561234/broncos-john-elway-have-enough-room-play-smart?source=rss

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