According to 9News' Mike Klis, the base value of the deal is $900,000 with a $100,000 workout bonus. Charles can then make up to $3.75 million total through incentives.
Broncos general manager John Elway welcomed the team's new running back to the fold:
“I still feel like I can play ball and still keep up with the young people," said Charles, per James Palmer of the NFL Network. “Why Denver? I always wanted to play for Denver growing up," added Charles when asked why he chose the Broncos, via Paul Klee of the Colorado Springs Gazette.
Charles admitted he wasn't fully healthy last season, per Nicki Jhabvala of the Denver Post, saying, "I just wasn't ready last year."
Charles was released by the Chiefs at the end of February following a pair of injury-riddled seasons. He only played eight games in the last two years combined, totaling just 12 rushing attempts for 40 yards in 2016.
While he had limited opportunities, this past year was the first time he failed to average over five yards per carry.
With Charles at 30 years old and with about $7 million owed in 2017, the Chiefs decided to move on from their star running back.
Prior to the recent injuries, however, Charles was one of the best in the league at his position for about a decade. He rushed for over 1,000 yards in five out of six years from 2009 to 2014, going to four Pro Bowls in this span while being named first-team All-Pro twice.
He ranks eighth in the NFL among active players with 7,260 career rushing yards and 12th with 43 rushing touchdowns. Perhaps most impressive, Charles ranks fourth in league history with 5.5 career yards per carry, with two of those in front of him being quarterbacks.
"I appreciate the way he came to work every day; he gave us everything he had day-in and day-out," Chiefs coach Andy Reid said of the running back, per the team's release. "I've said it before, I think he's a future Hall of Famer."
Although the veteran will have to prove he can stay on the field and still produce at a high level, the talent is obviously there for him to make an impact.
With the Broncos, Charles will try to provide an upgrade to a team that finished 27th in the NFL in rushing yards last season. C.J. Anderson struggled when healthy and Devontae Booker didn't do much better after taking over.
All three players will now likely get chances to compete for playing time, along with sixth-round draft pick De'Angelo Henderson.
If Charles can remain healthy with a lighter workload, he could help the Broncos return to the postseason.