Broncos Clear $3.6 Million By Re-doing Williams' Deal

In a move that helps to reduce some of the dead money resulting from the release of cornerback Dre’ Bly, the Denver Broncos have created $3.6 million in cap space by converting a $4.5 million roster bonus owed to linebacker D.J. Williams into a guaranteed payment.

According to Mike Klis of the Denver Post, the move spreads the payment over five years for cap purposes.  The cap charge for 2009 is reduced, then, to $900,000 — giving rise to an extra $3.6 million in cap room for the league year that commences on February 27.

The $3.6 million in cap savings resulting from the restructuring of Williams’ deal offsets only a portion of the the cap charge relating to Dre Bly’s release.

Per a source with knowledge of Bly’s deal, his remaining bonus proration is $9.45 million.  Because 2009 is the last capped year, the entire amount will have to be absorbed under the 2009 cap.

But since the Broncos are clearing Bly’s $3.25 million salary and $400,000 workout bonus, the net cap hit is $5.8 million.  So with Williams’ adjusted contract, the Broncos are only $2.2 million in the hole. 

(profootballtalk.com)