Yesterday the Colts have saved $10.4 million of cap space by releasing several veterans. The flip side is that they’ll now eat nearly $40 million in dead money:
Including Manning and Friday’s cuts, the Colts freed up approximately $10.6 million under what is expected to be a $120 million salary cap in 2012. However, the deletions, along with previous player moves, leave the team with nearly $38 million in dead money, which is remaining prorated bonuses that have been paid but not yet applied to the cap.
The Colts could apply the entire amount against the 2012 cap — that would be about one-third of the cap being taken up by players no longer on the roster — or push portions of two players’ dead money into 2013.
Also, this week’s transactions saved Irsay significant cash: about $50 million, which includes 2012 base salaries and the $28 million option bonus Manning won’t be getting.
Ryan Grigson and team officials have indicated that the real benefit won’t be realized until 2013 which suggests they may accelerate some of the dead money to 2012.