Broncos’ Updated Cap Outlook Comes With Important Caveats

The Denver Broncos will begin preparations for the 2026 season with the bulk of last year's roster still around, at least for the time being.

While one can debate whether the Broncos should have done more to acquire more than one outside free agent, retaining the bulk of their players in free agency, as Denver did, is uncommon in the NFL.

The Broncos are in a solid position on the salary cap, with about $18.8 million in cap space. However, that cap space comes with a couple of caveats.

First, that figure represents the Broncos' cap space entering June 1, when they will get the full benefit of their decision to cut Dre Greenlaw. He was given the post-June 1 designation when he was released in March, meaning the Broncos will carry his full 2026 cap charge until June 1.

Second, that cap space will go down a bit once the Broncos' remaining draft picks sign their contracts. Third-round defensive lineman Tyler Onyedim, fourth-round running back Jonah Coleman, and fourth-round offensive lineman Kage Casey have yet to sign, so their cap charges are not yet accounted for.

Third, the cap space is with the top-51 rule in effect. During the offseason, only the top 51 cap charges apply toward the cap. A number of Broncos who are likely to make the roster don't count toward the cap at this time.

Once the 53-man roster and 16-man practice squad are determined — along with any players who are placed on injured reserve if necessary — all players will count toward the cap. The Broncos will then know exactly where they are from a cap standpoint.

What it Matters

The Broncos are nearing the point where they will have to be mindful of their cap situation. At this time, the Broncos are projected to have $14.2M in cap space for 2027.

Again, that number comes with caveats. First, the $14.2M number is based on a projected base cap of $327M, even though it's not yet known what the actual number will be. Second, that number is with 40 players under contract, which doesn't include the three unsigned draft picks.

Third, the $14.2 million does not account for any cap carryover from 2026. That's because it's not possible to know what that carryover will actually be — that number will be better projected at about the halfway point of the regular season.

However, the future projections are a useful guide for determining the Broncos' flexibility in retaining players with expiring contracts and what may happen with the 2024 draft class, all of whom will be eligible for extensions during the 2027 season.

When it comes to the 2024 draft class, the obvious player is quarterback Bo Nix, who will see a significant increase once he signs an extension. The Broncos will no longer have the benefit of a cost-controlled quarterback contract at that point.

The Long-Term Picture is Crucial

Thus, it will be important for the Broncos to keep the long-term picture in mind when it comes to the roster. That doesn't mean the Broncos need to, for example, cut or trade players now, but they do need to have one eye toward the future when it comes to deciding which players will be kept for 2027 and who will be allowed to leave.

Furthermore, the Broncos will need to keep an eye on players who are under contract for 2027 when it comes to their cap charges. While it's easy to think that the Broncos can just restructure everyone, too many restructures can make it difficult to manage the roster in the future.

Tactics such as restructures, option bonuses, and void years can be useful, but the key is not to overuse them. If they are overused, you can wind up with too much dead money in future seasons when it comes time to move on from players.

Therefore, it's important to look at the long-term picture as much as it is to look at the immediate term when it comes to players, their contracts and cap charges.

To that end, we will be looking at contract situations for various players on the Broncos rosters, focusing mainly on veterans who are expected to be part of the 2026 roster and are eligible for extensions.

In other words, we won't look at players on the roster bubble because of recent draft picks or players not currently eligible for extensions. Only key veterans who are eligible for extensions will be considered.

The purpose is to give Broncos fans an idea of these players' current contract situations, cap charges, and what to consider regarding their future. In doing so, we'll give you a better understanding of why certain decisions might be made regarding players, and whether they happen this season or afterward.

The Takeaway

It's good that the Broncos have the bulk of the 2025 roster back for another season. But the question in the future will be how wisely they navigate their roster and cap situation, particularly when it comes time for them to extend Nix.

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