2002 Broncos forfeited third round pick

The Broncos were short on cash in 1998 so John Elway and Terrell Davis were deferrred $29 million, to be paid later, with interest. This is legal by NFL rules. The money was counted normally against the salary cap.

Well, the NFL has a deferred compensation fund that they require NFL teams to pay money to so that teams don't fall heavily into debt if they can't pay the players back. In 2000, the NFL said that $29 million was too much to defer, and Denver had to pay 75% of that immediately, so Denver paid Elway and Davis immediately. They also owed the NFL $303,000 to the deferred compensation fund of which the Broncos were unaware. After learning about this, the money was paid (with $663,000 in interest) and that was that.

In a memo from the NFL to the Broncos, they ruled that this violation was unrelated to the salary cap, that it did not give the Broncos a competitive advantage, and that the Broncos did not make a deliberate attempt to break league rules regarding deferred compensation obligations. However, they still were stripped of a third round pick, as is the normal punishment for this kind of thing.


2004 #171

Sent to Broncos to complete an August 2003 trade in which the Redskins received Lional Dalton from the Broncos. At the time of the trade, it was reported as a conditional seventh round pick that could be upgraded to a fifth round pick if Dalton participated in at least 40 percent of defensive snaps for the Redskins. Apparently the condition was not met. However, since the Redskins seventh round pick had already been dealt to another team (Round 7 #196), there was no seventh round pick to send to the Broncos. Since it was reported that the Redskins no longer held their sixth round pick, it appears as if a contingency was agreed to— before or after the fact— in which the Broncos received this pick.