Broncos free up more than $12 million in cap space

John Elway might have something up his sleeve.

On Thursday morning, the Denver Broncos converted $16 million of Von Miller’s $18.5 million base salary into a signing bonus, according to ESPN’s Field Yates. The move gives the Broncos an additional $12.375 million in cap space this offseason.

Cap hits are essentially a player’s base salary for the season plus a prorated amount of their signing bonus. The $16 million converted to bonus will add $4 million per year to Miller’s cap hit over the next four seasons, leaving him with a $9.7 million hit in 2018, $25.125 million in 2019, $25.625 million in 2020 and $22.225 million in 2021, according to Spotrac. The Broncos could potentially get out of the deal after the 2019 season with only $11.8 million in dead cap.

Denver could make a similar move next season and push the money back to 2020 and 2021 when Case Keenum’s contract comes off the books. If Elway drafts a quarterback this April, he would be locked into a rookie salary through the end of Miller’s deal.

Elway’s decision points toward a move in the coming days. The Broncos should have about $14.7 million in cap space this offseason after accounting for contracts for Case Keenum, Tramaine Brock, and the Broncos’ restricted free agents and draft picks.

Miller signed an unprecedented six-year, $114 million contract prior to the 2016 season. The deal is the largest contract and average annual salary for any defensive player in NFL history.