Found May 17, 2013 on
Pro Football Zone:
Quarterback Peyton Manning has renegotiated his contract with the Denver Broncos, according to the NFL transaction wire.
According to ProFootballTalk.com, the reason Manning renegotiated his contract with the Broncos was so they could add an insurance clause in case he suffers a serious injury.
The contract, according to the source, adds an insurance clause, which reflects that the team has purchased an insurance policy in the event Manning suffers a serious injury. The insurance would both compensate the Broncos and provide a cap credit in the event Peyton can’t play. To get the cap credit, the contract must refer to the insurance policy.
Manning will earn $40 million guaranteed over the next two seasons, in $20 million chunks for 2013 and 2014, respectively. The Broncos can avoid the $20 million payment in 2014 only if Manning suffers injury to the same area of his neck that kept him from playing in 2011.
For any other injury or condition, the Broncos are on the hook. Which means that, barring compelling medical evidence that any new neck injury arises directly from the old neck injury, Peyton is getting $40 million over the next two years.
This move certainly makes sense for the Broncos since they have to pay Manning so much money over the last two years of his contract. Let’s face it, he’s not as durable as he once was.
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