He was released...that is done. Denver will have to pay the cap penalty for that regardless of what happens. Only way they could "get around that" is if Dummerville agreed to take less money in first year to accommodate that hit.
It is
not a penalty. It is cap $ that would have been owed anyway in future years, prorated over the remaining term of the old contract, that are accelerated into 2013.
I'm not going to lay out the old and failed contracts to come up with exact numbers, but here's the concept:
If, for example, they gave him $7 mil signing bonus, $1 mil base in 2013, ED gets his $8 mil guaranteed in the first year, but the cap hit is the old $5 mil + the $1 mil base + $2 mil prorated signing bonus (assuming a new 4 year deal). The cap hit in the failed deal and the cap hit in this example are both $8 mil in 2013. They could juggle the numbers to make it virtually equivalent year by year.
In short, they can easily make the outcomes equivalent by replacing first year salary with a new signing bonus.