The quarterback was guaranteed $9.5 million during the term of his contract (which runs through 2021), but all of that money was due in 2016, leaving Buffalo free to cut ties after one season, conveniently before his cap hit jumps to $15.9 million.
This was a successful gambit by Buffalo. They have eliminated a great deal of risk to a big-money contract. I suspect they will end up keeping Taylor, but for less than what the original contract called for and it will be set up in the most team-and-cap friendly way.
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