Broncos QB Peyton Manning’s renegotiated contract cleared $2.5 million in cap space in 2013

Last week, the Denver Broncos and quarterback Peyton Manning agreed to a renegotiated contract with the primary intent on adding insurance language for the 2014 season. The new contract, which was originally reported by Mike Klis of The Denver Post, was initially believed to have no cash or salary cap implications, but that was not the case, a source with knowledge of the contract details confirmed to "Shutdown Corner".

Under the new terms of the contract, Manning will still earn the $40 million in guaranteed money over the next two seasons, but the payouts of those amounts has been tweaked.

Instead of earning $20 million in fully guaranteed base salaries in 2013 and 2014, Manning received a $10 million salary advance and his base salaries in 2013 and 2014 have been lowered to $15 million in each season. The $10 million salary advance is treated like a signing bonus and will be prorated over the next four seasons, reducing Manning's cap number from $20 million to $17.5 million in both 2013 and 2014.

However, the downside to the cap savings the next two seasons is that Manning's cap number will increase by $2.5 million, going from $19 million to $21.5 million, in both 2015 and 2016 as the Broncos will have veered, slightly, from the "pay as you go" approach they had been taking with the 37-year-old quarterback.

With $2.5 million in additional cap space from the Manning renegotiation, the Broncos are now $9.9 million under their 2013 adjusted cap number of $139.76 million. That leaves plenty of room to land defensive back Charles Woodson, whose other suitors — the Oakland Raiders and Detroit Lions — each have less than $3 million in 2013 cap space remaining.