When the team and Thomas agreed to a five-year deal last offseason, it included an automatic conversion clause that entitles Denver to convert any portion of Thomas’ $13M base salary in 2016 into a signing bonus, which would be prorated for cap purposes over the final four years of the deal.
If Denver were to reduce Thomas’ base salary down to the minimum of $760,000 for 2016, the team would create $9.18 million in cap space, a sum that could well be needed as it continues to explore a trade for quarterback Colin Kaepernick and also plans for activity such as signing draft picks and other free agents.
There’s no downside to the conversion for Thomas, who sees precisely the same amount of money. As a matter of fact, he would get a lump of cash even sooner than currently scheduled. The Miami Dolphins included a conversion clause in the contract for defensive tackle Ndamukong Suh, allowing the team to create $16 million in cap space earlier this offseason.