These 4 Broncos Earned Big Pay Raises in 2021 By Hitting Performance Escalators
Some members of the Denver Broncos draft class could see their future salaries rise because of proven performance escalators. The proven performance escalators (PPEs) added to the NFL/NFLPA collective bargaining agreement ensure that draft picks who contribute a lot to a team get additional money in the final years of their rookie contracts.
The PPEs only apply to drafted players who are still on the original contract they signed when they were drafted. For first-round picks, there is a new PPE for fifth-year options, in which a player will see his option increase if he is selected to the Pro Bowl on the original ballot (not as an alternate) in any of his first three seasons.
How much it increases depends on how many Pro Bowls to which the player was selected. For one selection, it increases to the Transition Tag amount, and for two or three, it increases to the Franchise Tag amount.
First-round picks also will have their fifth-year options fully guaranteed, meaning teams will have to be more cautious when exercising options.
Second-round picks previously didn't get PPEs, but will now, starting with the 2018 draft class. Third- through seventh-round picks have been eligible since 2011.
The PPEs for these picks are divided into three levels. Level One is for players who play a certain percentage of snaps in two of their first three years, or hit that percentage on average over their first three years. For second-round picks, the threshold is 60 percent, and for all other rounds, it's 35 percent.
Level Two is for players who play at least 55 percent of the snaps in all of their first three seasons, and Level Three is for players who are named to the Pro Bowl on the original ballot (again, not as an alternate) in any of their first three seasons.
For these picks, Level One PPE equals the right-of-first-refusal restricted free-agent tenders, Level One equals that tender plus $250,000, and Level Three equals the second-round RFA tender.
Which of the 2018 Broncos draft picks are in line for PPE? Let's look at them.
Bradley Chubb | OLB
After getting his first Pro Bowl bid on the original ballot, Chubb will get a PPE in his fifth-year option. Over the Cap's Nick Korte recently examined players who were favored to make the Pro Bowl (though not all made it) and the PPEs that could come into play.
Per OTC's estimates, Chubb's fifth-year option was to be a little more than $10M, but because of his Pro Bowl nod, it will increase to a little more than $13M.
If OTC's estimates hold up, it's likely the Broncos will exercise his option. One can argue whether or not Chubb is a game-changer, but $13M is in line for what second-tier edge rushers receive.
OTC's estimate for Chubb puts his fifth-year option in the range of Kyle Van Noy, Preston Smith and Jadeveon Clowney. While you can debate whether those three are worth the $13M price tag, that's far less than the $20M-and-up salaries that Joey Bosa, Myles Garrett, Khalil Mack, DeMarcus Lawrence and Frank Clark receive.
Simply put, exercising Chubb's fifth-year option is for the best.
Courtland Sutton | WR
Though Sutton missed most of 2020 with a torn ACL, he still got more than enough snaps in his first two seasons to earn PPE. He played 76% of the offensive snaps in 2018 and 92 percent in 2019, thus he qualifies for Level One, which could be about $2M.
Sutton's ACL injury, though, cost him the chance to earn an extra $250,000, because he certainly would have played at least 55% of the offensive snaps this season were it not for the injury.
He was named to the Pro Bowl in 2019, but as an alternate, so he's not eligible for Level Three PPE. Still, Sutton will see more money come his way in 2021 — just not as much as he might have received if his 2020 season hadn't ended prematurely.
Josey Jewell | LB
Jewell has earned the Level One PPE by playing 42.5% of defensive snaps in 2018, then 92.6% of snaps in 2020. He had few snaps in 2019, but his percentage the other two seasons will push his 2021 salary up to about $2M.
Jewell has settled in as a good run defender, but his coverage skills remain an issue. I expect the Broncos to keep him in 2021, with the possibility they extend him after the season as a lower-end tier-two player. If so, that would likely put him in the $6M to $7M range.
DaeSean Hamilton | WR
Hamilton has averaged 51.7% of the offensive snaps in his three seasons, which put him at the Level One PPE threshold. Thus, the Broncos will have a depth receiver slated to make about $2M.
This begs the question: Do the Broncos really want to keep a depth player for that much money? I've already mentioned that keeping Patrick on the second-round tender of about $3M may be too much for a depth player, and if the Broncos think that way, would they think the same of Hamilton at $2M?
Keep an eye on Hamilton, because it's possible the Broncos could try to trade him at some point. Failing that, they could take a close look at other receivers in training camp who could provide depth at a lower cost, and then cut Hamilton.
2018 Class Who Haven't Hit PPE
Royce Freeman | RB
Freeman hasn't played enough snaps on offense to qualify for PPE, so he'll stay at his 2021 salary of $970,000.
Because that salary isn't guaranteed, I expect Freeman to be retained at least until training camp. What happens from there remains to be seen, though. Somebody could beat him out for a roster spot and lead to the Broncos either trading or cutting him.
Troy Fumagalli | TE
Because Fumagalli was cut before he completed his rookie deal as a 2018 fifth-round pick, but has been on the 53-man roster for enough games this year, he'll be a restricted free agent in 2021.
On one hand, he's not eligible for PPE. On the other, because he'll be an RFA, those tenders will apply, meaning Fumagalli will garner $2M if he gets the right-of-first-refusal tender.
That's likely more than the Broncos will want to pay for Fumagalli, even if the money isn't guaranteed. If they want to keep him, it's more likely they don't tender him, but re-sign him to a one-year deal for less than the ROFR tender level.
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