Thanks. Excellent find Kdawg. It makes sense to me now:
"$6.275 million due 29 days after start of 2011 league year. Typically season starts March 1, but it's written this way in case work stoppage delays start of season. (Salaries from 2011-14 reduced to offset advance)"
That's the key part of it, what I highlighted. The total contract value that Miami would be on the hook for is still $8.42 million from 2011 thru 2014, with the potential for a $1.5 million bonus if he gets 45% snap participation in any year. However, the bulk of those salaries are fully guaranteed and what happens on September 2nd is those guaranteed salaries get reduced to minimums, while the excess gets scraped off and paid up front.
So Miami would be in effect "signing" Tim Tebow to a 4 year, $8.4 million contract with $6.3 million in guaranteed money, and a $1.5 million incentive bonus should he play 45% of snaps or more in any year.
That's a decent deal. Absolutely. That's an excellent deal for Miami. Don't wait for Denver to cut him, you won't get him. He'll get picked up off waivers.