Peyton Manning will have $4 million less to budget this year, the price for him staying in Denver. The Broncos are in the final stages of negotiating a deal with the quarterback to cut his pay from $19 million to $15 million, and his salary cap hit from $21.5 million to $17.5 million.
The news comes as no surprise, as both parties hoped to reach a mutual agreement. Once Manning passes a physical exam, the contract will be finalized and the veteran will begin preparing for his 18th NFL season.
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"I've been working real hard and I'm excited to be back with the Denver Broncos. Can't wait for April 13 to get here when the team can finally come together. I'm excited to get to work and get to know the new coaches and looking forward to trying to make 2015 a special year," Manning told The Denver Post's Mike Klis on Wednesday.
Klis reported the $4 million difference can be made up by reaching certain "team-based" incentives.
"I don't talk about my contract. I never have in 18 years and I'm not going to start now," Manning told Klis.
The reported pay cut gives the Broncos some salary cap relief, which can be used to help re-sign tight end Julius Thomas.
Klis also reported that Manning's non-guaranteed $19 million salary for 2016 is unchanged.
Manning, who turns 39 on March 24, showed diminishing arm strength last season but played well overall. He threw for 4,727 yards and 39 touchdowns. He also played the final few weeks of the season with a quad strain. Still, he sees his physical as being "pretty routine."
Sporting News Media's Tom Gatto contributed to this report. This report has been updated.