Analyzing How Much Cash Broncos Are Spending Compared to NFL Rivals
When we look at the Denver Broncos' spending patterns, we often talk about cap space and how much room the team has to add other players, but we don't talk as much about cash spending.
Cap space and cash spending are two different elements. The former is about how much space a team has to fit new contracts under the salary cap, while the latter refers to the actual cash spent.
As an example, teams often use signing bonuses in contracts and that money is paid out over the course of the first year of the contract. For cap purposes, it is pro-rated over the duration of the contract, but for cash purposes, it is not — the money in question is paid in the first year.
The cap space the Broncos have at this time (about $28.8M) may lead some to think the team isn't spending a lot of cash. But this is where context is needed.
Let's look at the Broncos' cash spending and compare it to other teams.
Cash Spending
The Broncos are spending $201.6M in cash this year. That doesn't seem like a lot, especially when you compare it to, say, the Dallas Cowboys, who are spending $273.4M in cash.
However, we need to look at an important context: The Cowboys are paying a lot of money to Dak Prescott, who signed a four-year, $160M deal earlier this year.
This year, Prescott is getting a $66M signing bonus and a $9M base salary, for $75M in first-year cash. The Cowboys had to do this deal for two reasons: Limited cap space (meaning they needed to structure it to fit under the cap this year) and the fact Prescott wasn't willing to take more than a four-year deal.
Now compare Prescott to Patrick Mahomes, who appears to have this great deal from the Kansas City Chiefs for $400M over 10 years. But here's the context: The Chiefs are paying Mahomes a little more than $22M this year.
That's because, when Mahomes signed his deal last year, he took a $10M signing bonus and an $825,000 base salary. The contract was structured with roster bonuses the Chiefs could convert into signing bonuses as needed. This is exactly what the Chiefs did with Mahomes this year, one move that helped them get more cap space.
In summary, the Cowboys are spending more money because they have to — they had to find a way to make Prescott's contract work given cap constraints and contract length. Meanwhile, the Chiefs didn't have to put so much money upfront into Mahomes' contract, and while they aren't going cheap on him, they are in a position to spend less on him earlier in the contract.
Broncos: The team is spending $79.9M on offense, $104.6M on defense, with the remainder for special teams.
It's not surprising the Broncos aren't spending a lot of cash on the offense, because their quarterbacks and wide receivers are all on low-cost deals, with the most cash for offense spent this year on Graham Glasgow ($8.4M cash) and Melvin Gordon ($6M).
Even Garett Bolles, who signed a big extension last year, is drawing just $1M this year, after getting a $20M signing bonus in the contract he signed midway through last season.
Meanwhile, on defense, the Broncos have committed plenty of cash to Von Miller ($17.5M), Justin Simmons ($17M, $15M as a signing bonus), Ronald Darby ($10M, $9M as a signing bonus), Shelby Harris ($10M, $9M as signing bonus) and Kyle Fuller ($9M).
In terms of the total cash spending, the Broncos rank in the third quadrant of NFL teams that are spending more than $200M but less than $210M. That includes some teams that may surprise you, such as Washington ($207.6M) and the Eagles ($203.7M).
Why Aren't Some Big-Market Owners Spending as Much?
Why would these teams in bigger markets with owners who are willing to spend not spend as much? For Washington, the team is still rebuilding. The most cash they'll pay this year to a player is Brandon Scherff, who will play under a franchise tag of $18M. Washington will have to pay Landon Collins $12M, Kendall Fuller $10M, and Ryan Fitzpatrick $9M, but otherwise, they're focusing on their recent draft picks and cheaper free agents.
The Philadelphia Eagles more recently spent as a "win now" team would, but after a subpar season with bad QB play, and the cap dropping, they are now taking a step back and reassessing. They had to restructure multiple deals to get under the cap and will be moving forward with a cheap QB in Jalen Hurts.
When it comes to offense, the Broncos rank near the bottom, with just four teams spending less including the New Orleans Saints ($79.2M), Baltimore Ravens ($78.1M), Detroit Lions ($76.7M), and Pittsburgh Steelers ($74.9M). Each is for a different reason — Saints and Steelers have cap issues, Ravens have a QB on a cheap rookie deal and Lions are rebuilding.
As for defense, it's a different story for the Broncos — they rank fifth overall, behind the New England Patriots ($117.3M), Buffalo Bills ($107.8M), Chiefs ($106.4M), and Arizona Cardinals ($104.8M). The Chiefs could drop down, though, and we'll get to the reason why later.
Denver's Strategy
You can see where the Broncos' strategy lies — take advantage on cheaper players at QB, WR, and TE by putting more money into the defense.
As for the Broncos' AFC West rivals, the Chiefs are in the top quadrant, but not spending as much as the Cowboys. They are spending $224.6M, and Chris Jones is not far from what Mahomes gets in cash this year with $21M, $20M that was a roster bonus but converted into a signing bonus.
Additionally, Joe Thuney is getting about $18M in cash, mostly through a $17M signing bonus. The Chiefs are also paying $14.5M to Tyrann Mathieu and $12.7M to Tyreek Hill.
Frank Clark is due $18.5M in base salary, but that money is in jeopardy thanks to his recent arrest. If Clark is placed on the commissioner's exempt list or is otherwise disciplined, that's less cash the Chiefs have to pay this year.
Meanwhile, the Las Vegas Raiders are just slightly ahead of the Broncos in terms of cash spending at $201.8M. The most cash they will spend on players is for Derek Carr ($19.5M), Yannick Ngakoue ($13M), Kolton Miller ($11.5M), and Cory Littleton ($11M, $5.5M which was converted into a signing bonus).
The AFC West team that's actually spending the least cash this year is the Los Angeles Chargers, at just $181.3M, putting them in the bottom-fourth. The Chargers have handed out big contracts recently to Joey Bose and Keenan Allen, but they're getting $13.75M and $13M in cash this year, while Mike Willaims gets $15.6M on the fifth-year option of his first-round pick contract.
The Chargers, for the most part, avoided free agency and doing a bunch of restructures, even though they could have been tempted to do so. After all, they appear to have their QB in Justin Herbert, who is on that cheap rookie deal, and the theory is when you have that QB, to spend money to build around him.
What the Chargers do in the future remains to be seen, but for the moment, they aren't going "all in" with the cash spending.
Tampa Goes All In
If you're looking for a team going "all in" this year on spending cash, it's the Tampa Bay Buccaneers with $276.7M. Most of this is because they either had to re-sign players whose deals expired, or restructured existing contracts. They were able to do this by using signing bonuses, something they seldom did in the past.
Along with the Cowboys, who had to spend big money because of Prescott, the Patriots broke their usual habit of being frugal and spent a lot in free agency, leading to $252.4M in cash spent.
Spending cash doesn't always work — just ask the Houston Texans and Jacksonville Jaguars, who both spend more than $228M this year but are at the bottom of the league. The Jaguars might get further up the ranks if Trevor Lawrence has a strong rookie season, while the Texans are stuck at the bottom with a poorly built roster.
What it Means
In summary, if you want to understand where a team is really at in terms of what it spends, cash spending is what matters. And when it comes to teams that spend a lot, it's either because they're paying a lot for QB or paying a lot to keep a Super Bowl contender in place.
If the Broncos find their long-term QB, their total spending is sure to change, especially if that QB makes them a Super Bowl contender. After all, when that window is open, you better use it while you can.
For now, the Broncos are a modest spending team, but not going as cheap as you might think. They are spending plenty of cash — and if they do find that QB or turn into a Super Bowl contender, there's a greater chance they will spend more.
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