Denver Broncos: Why Peyton Manning Must Take a Pay Cut to Stay in Denver

In the regular season, John Fox and Peyton Manning had a 38-10 record. But it still wasn't enough.

Manning and Fox had three great chances at the Super Bowl, and they squandered all three. Denver lost a brutal game to Baltimore two years ago, was obliterated by Seattle in the Super Bowl and was embarrassed by the Colts 24-13 in the 2014 divisional playoffs.

Now, the soon-to-be 39-year-old Manning faces a difficult decision. Should he ride into the sunset, or should he try to win that elusive second ring in 2015?

While, as Sports Illustrated notes, John Elway expects Manning to return, it's not a sure thing. It wouldn't be surprising to see Manning, whose passer rating was 76.5 in December and January, hang up the cleats or even be released by the Broncos.

As for his coach, Fox was let go of. Fox's questionable coaching, such as the decision to take a knee with 31 seconds and two timeouts in a tie game against Baltimore in the 2012 playoffs, cost the Broncos.

Fox deserves lots of the blame, and so do the coordinators. Defensive coordinator Jack Del Rio rarely dialed up creative blitz packages and couldn't find effective matchups in the secondary. On offense, the Broncos continued to take deep shots against star cornerback Vontae Davis, leading to 13 points.

With the coaching staff gone, the Broncos are on the cusp of beginning a new era. The coaching staff and the roster will look dramatically different next year; the Broncos have lots of free agents to sign.

Demaryius Thomas, Julius Thomas, Orlando Franklin, Rahim Moore, Nate Irving and Terrance Knighton are all hitting the market.

According to spotrac.com, they should have about $22 million to play with. They can't sign all of these players with that money, and they certainly can't make a splash outside of Denver with that money. To add to this number, it is absolutely necessary for the Broncos to request for Manning to take a pay cut.

Manning is certainly better than a good number of the quarterbacks who have recently cashed in with lucrative deals, such as Andy Dalton, Colin Kaepernick and Jay Cutler. But his long career has set him up wonderfully financially. He doesn't need the money, but the Broncos do.

And if Manning isn't willing to comply, the Broncos might be faced with the difficult decision of keeping him or not.

Denver would have to scramble to retain its own free agents, and it wouldn't be able to make necessary improvements with out-of-house options. It needs to free up money somehow, and terminating Manning's contract would free up $21 million.

This money would significantly help the Broncos bring in assets for the future, and the only downside would be that the team's quarterback play would be weak. Backup Brock Osweiler is almost certainly not going to lead the Broncos to a Super Bowl win in 2015, but Manning also isn't likely to.

Manning is almost certainly going to retire after the 2015 season, so if the Broncos don't win the Super Bowl in 2015, they'll have wasted $21 million that they could have spent elsewhere. 

The best solution for the Broncos is to find a balance; offer Manning a pay cut of about $10 million. If Manning truly is committed to winning championships, he would take the pay cut to allow the team to sign quality free agents for what would almost certainly be Manning's final run at a Super Bowl.

With the extra $10 million, Denver could possibly re-sign Demaryius Thomas (and maybe Julius Thomas), bolster its offensive line, re-sign Terrance Knighton and add a ball-hawking safety.

In other words, the Broncos could create a team capable of winning games without much production at quarterback.

With a new coach who could bring the best out of the talented defense, the offense won't have to be great in 2015.

By hiring Seahawks defensive coordinator Dan Quinn or Lions defensive coordinator Teryl Austin, who led the top two defenses in the NFL this year, the Broncos could dial up pressure on quarterbacks and play to their corners' strengths.

Eventually, the Broncos will need something at quarterback. Preferably, Manning would be at quarterback as a game manager, doing just enough to help the Broncos win low-scoring games.

The Broncos don't want Brock Osweiler at quarterback, but they also don't want to mortgage a promising future with a bright new coach and a talented defense on one season with a 39-year-old quarterback.

If Elway chooses the right coaching staff, the Broncos will get the most out of their defense. Denver could look to follow the Seahawks' blueprint of winning games through defense and running the ball, and Quinn or Austin could help implement that philosophy.

However, the Broncos need some production on offense. They need Demaryius and Julius Thomas. On defense, they need Terrance Knighton wreaking havoc against the run. They need a safety who can change games with timely turnovers.

And if Manning isn't willing to contribute to that mission, the Broncos might be forced to let him go, hand the keys over to Osweiler for a year and develop a new franchise quarterback.