New York will send a fifth-round pick to Denver in exchange for Clady, and get back a seventh-round selection along with the offensive lineman, the Jets announced.
NFL Media's Albert Breer reported that Clady adjusted his contract to facilitate the trade to the cap-strapped Jets.
The offensive lineman is now on a one-year deal with a $6 million base value, and $3 million of it is guaranteed, per NFL Media Insider Ian Rapoport. Additionally, Clady has one option year for $10 million, and that figure can escalate to $13 million.
While Ferguson was hitting the downslope of his career -- an impetus the tackle admitted was a reason he walked away after a decade -- he was the picture of health, not missing a single snap due to injury in 10 years. Clady, on the other hand, has missed 30 games over the past three seasons, including all of 2015.
Clady, 29, hasn't been the same blocker since suffering a season-ending Lisfranc injury early in 2013.
If healthy, however, Clady is a massive upgrade over the spare parts and projects currently on the team's roster. The price was right for the upside, but it shouldn't preclude the Jets from adding a young tackle in the draft.