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Yes, Woodyard will be an every down linebacker as long as Williams is out (which may be the entire season now depending on how the Broncos handle his suspensions).
I'm not as high on Sheppard as others. But that's not because I don't think he's talented, he's because he's only a two down linebacker for now.
With this said, Woodyard is likely a better option in the short term, but there's no guarantee he's a starter past week 6. If Sheppard lands an every down gig sometime during the season, he has LB1-/LB2+ potential. So it all depends on what you need from your team. Woodyard will help your team more right now but that move may be a bit myopic depending on Sheppard's subpackage situation.
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