— Mike Klis (@MikeKlis) March 9, 2016
It is my guess that $5 million APY would be valued as a 5th rounder in the compensatory formula. For the time being, the Broncos have been reduced to a net value 7th compensatory pick in 2017 (and it puts the Chiefs on the board with a 5th). However, if/when Danny Trevathan signs his big deal elsewhere, it is my guess that he’ll be the one that Stephenson ultimately cancels out.
UPDATE (8:15 MT): Alex Marvez has some more detailed contract info:
— Alex Marvez (@alexmarvez) March 9, 2016
That $1 million could make a difference in the 2017 compensatory picks: a $4.67M APY should be closer to the 5th/6th bubble. If Stephenson has any workout bonuses, that will also drive his compensatory value down further. If Stephenson is valued as a 6th, that will make it much less likely that he ultimately cancels out Danny Trevathan’s future deal.