The defensive end had two years left remaining on his contract. In 2013, he was set to count $4.975 million against the Bills' salary cap figure. In 2014, that number went up slightly to $4.995 million. Now that he's retired, the Bills will have two choices on how Kelsay will count against their cap.
The Bills aren't totally off the hook, but they are for the most part. Because he retired two years premature, his contract carries a prorated amount of $400,000 for each of the next two years.
The Bills can either elect to count the entire $800,000 against their 2013 cap and save a total of $4.175 million this year and the whole $4.995 million in 2014, or they can allow the $400,000 to take affect in both 2013 and 2014. If they choose the latter option, the Bills will save $4.575 million this season and $4.595 million in 2014.