This was on Fanball:
03/02 11:06 Colts: Ruling may lead to more cuts
An NFL arbitrator's ruling regarding the contracts of quarterback Peyton Manning and wide receiver Marvin Harrison might necessitate more cuts by the Colts in order to get under the league's salary cap. The ruling by special master Stephen Burbank, a professor at the University of Pennsylvania Law School, prohibits the Colts from converting roster bonuses of $9 million for Manning and $10 million for Harrison to signing bonuses, allowing them to be prorated over the next four years. Such a move—a standard bookkeeping maneuver, according to the Indianapolis Star—would have lowered Manning's cap hit by $7.7 million and Marv's by $7.5. Burbank's ruling, according to NFL spokesman Greg Aiello, was based on the "30 percent rule," which prevents base salaries from increasing more than 30 percent each year over the first year of the contract.
If the ruling holds—and a special master's decision is believed to be final, though Colts owner Jim Irsay told the Star the issue was "far from resolved"—Manning and Harrison would count a combined $32 million against Indy's salary cap for 2006. That would result in the need for some significant paring of the payroll, with more cuts inevitable and the possibility of bringing back running back Edgerrin James or linebacker David Thornton extremely unlikely.