The Colts will be able to opt-out of quarterback Peyton Manning’s contract after this season, potentially saving them $64 million, ESPN’s Chris Mortensen reports.
According to Mortensen, Manning instructed his agent, CAA’s Tom Condon, to give the team that option to protect them in case his neck injury did not recover the way he and his doctors had hoped.
Manning’s five-year, $90 million contract included a $20 million signing bonus, half of which is deferred to March of 2012, and a $3.4 million base salary and $3 million roster bonus. Since Manning is on the team’s 53-man roster this week, that roster bonus has been paid.
The remaining $64 million in Manning’s contract consists of a $28 million option bonus or a $28 million non-exercise fee (deferred to 2013 and 2014) and base salaries of $7.4 million (2012), $8.4 million (2013), $9.4 million (2014), and $10.4 million in 2015. The Colts will have a narrow window next March where they can get out of the $28 million payment.