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Contractual audible: Manning signs new deal without passing physical

9/13/2011

The Indianapolis Colts recently finished a much-debated and analyzed contract negotiation process with star quarterback Peyton Manning that resulted in the greatest annual salary among all National Football League players.

However, recent reports have surfaced that show the Colts may have committed some key due diligence failures.

According to Pro Football Talk, Manning and the Colts agreed to a new five-year deal worth $90 million without the quarterback taking a physical. While the two sides were eager to get the deal done, Manning's physical condition was apparently less than stellar.

Soon after the deal was struck, reports confirmed Manning would not be able to play in the team's opening game and he was expected to an indefinite amount of time following spinal surgery. Despite the injury, Manning will still pocket a $3 million roster bonus for making the team, which is part of his new deal's terms of use.

The Colts also have a potentially interesting dilemma on their hands next season. Manning is owed a $28 million option bonus as part of his new deal for the 2012 season. If his injury is still preventing him from playing, the Colts would have to trade or cut him in order to avoid making this payment.

Manning's deal highlights the importance of companies conducting the utmost due diligence before committing to any deal with outside parties, such as software vendors.