Tebow Watch: Done deal

Tebow Signs 5-Year Deal With Broncos (2:58)

Tim Tebow, the 25th-overall selection in April's draft, signs a five-year, 11.25 million contract with 8.7 million guaranteed (2:58)

Denver has agreed to terms with quarterback Tim Tebow.

The two sides were making major progress earlier Thursday afternoon and apparently the deal is sealed. The five-year, $11.25 million contract has $8.7 million in guaranteed money and has a maximum value of $33 million.

Denver’s rookies began camp Wednesday. Tebow’s two competitors at quarterback -- starter Kyle Orton and backup Brady Quinn –- have been at camp since Wednesday. Denver’s full squad starts camp Sunday. While the Broncos preferred Tebow in camp by Wednesday, they really wanted to make sure he was signed and ready to go by Sunday. With him now secured, the team is confident Tebow won’t miss any significant practice time.

Barring any unexpected setbacks, Tebow should be ready to play in Denver’s preseason opener at Cincinnati on Aug. 15, a game in which Tebow and Bengals’ receiver Terrell Owens will be fighting for the league’s headlines.

Tebow's contract is a healthy raise from the salary last year’s No. 25 pick received. In 2009 Miami signed cornerback Vontae Davis with the same pick and signed him to a five-year, $10.5 million deal. The difference is understandable since Tebow is a quarterback, which is a premium pay position. Tebow will likely be a backup in 2010 unless the season completely blows up in Denver. Tebow, who will likely be the starter in 2011, will likely play early in the season in the Wildcat formation and perhaps in some red-zone packages.