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I think you have that backwards. Irsay wants to keep Manning and I think the Polian's wanted to pick Luck and possibly deal Manning. The Polians know, and Bill stated that the roster is weak and they have to rebuild the whole thing. The best way to do that is trade Manning now and get two 1st round picks and whatever else comes with the bounty. Suck it up for a year or two while Luck takes his lumps and rebuild through the draft. I'm guessing, becauses Irsay is a fanboy more than a GM/Owner type, that he has sentimental value and doesn't believe his team is as depleted as they are in the talent department.
The problem is that the contract Polian negotiated with Manning is virtually untradeable. They'd have to find somebody willing to pay a $28 million bonus to a 35-year-old QB coming off multiple spinal surgeries and a year on the sidelines. And then expect to get significant value back in return? Not likely.
Their choices are either cut Manning and draft Luck, or keep Manning and put the immensely valuable #1 pick up for bids in the hopes of rebuilding the rest of the team. The second option isn't crazy, IMO.