AP

At the Scouting Combine in Indianapolis, Broncos executive V.P. of football operations John Elway said he didn’t anticipate asking Peyton Manning to restructure for cap purposes a deal that pays $40 million over the next two seasons, in two $20 million chunks.

But Manning has signed a new deal. Though it has been disclosed on the league’s official online transaction page as a “renegotiated” contract, a source with knowledge of the situation tells PFT that the new terms don’t alter the compensation in any way.

The contract, according to the source, adds an insurance clause, which reflects that the team has purchased an insurance policy in the event Manning suffers a serious injury. The insurance would both compensate the Broncos and provide a cap credit in the event Peyton can’t play for any injury other than another injury to his neck. To get the cap credit, the contract must refer to the insurance policy.

Manning will earn $40 million guaranteed over the next two seasons, in $20 million chunks for 2013 and 2014, respectively. The Broncos can avoid the $20 million payment in 2014 only if Manning suffers injury to the same area of his neck that kept him from playing in 2011. If a non-neck injury happens, the Broncos cash in on the policy.

For any other injury or condition, the Broncos are on the hook. Which means that, barring compelling medical evidence that any new neck injury arises directly from the old neck injury, Peyton is getting $40 million over the next two years.

Which helps explain the motivation to purchase insurance.