State of Broncos' Salary Cap Entering 2025 Offseason

The Denver Broncos are in a better spot than in years past, but don't have as much cap space as fans think.

May 13, 2023, Englewood, Colorado, USA: Broncos Head Coach SEAN PAYTON, left, with General Mgr. GEORGE PATON, center, and CEO GREG PENNER look on from the field during Broncos Rookie Training Camp at the Denver Broncos Practice Facility Saturday afternoon. / Hector Acevedo / IMAGO / ZUMA Press Wire

This past week, the Denver Broncos signed 13 players to futures contracts for 2025, which gives the team a clearer picture of their salary cap situation for the coming league year. The Broncos are projected to have $35.7 million in cap space for 2025, per Over the Cap.

However, that is based on on projected base salary cap of $272.5M. Also, OTC's numbers show a different number for effective cap space, but that is because not every team has 51 players under contract for 2025 yet. Teams that are still in the playoffs, plus teams still weighing roster decisions, aren't up to 51 players at this time.

A few things to keep in mind about cap space is some of will be taken by incentives due and escalators that take effect.

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Incentives are added to a player's contract in one year but apply to the following year, such as those in Courtland Sutton's deal. He earned a $500,000 incentive by reaching 1,065 receiving yards for the 2024 season and did so in Week 18.

Escalators are built into some contracts, such as for players on rookie contracts who are taken in the second round or later. Case in point is rush linebacker Nik Bonitto, who was named to the Pro Bowl and earned a raise in his 2025 salary as a result.

Bonitto's Pro Bowl selection got him to the Level Three proven performance escalator (PPE), which raises his base salary to the amount for a restricted free agent tendered at the second-round level. That amount is projected to be $5.217M.

We'll know more about tender and PPE amounts once the NFL officially sets the 2025 base salary cap. However, Broncos fans should know that there will be players such as Bonitto who might see salary increases because of escalators.

As for what this means regarding free agency, it doesn't change a lot. The Broncos are likely to be active this time around, though probably not as aggressive as in 2023 because they have a couple of players they may want to extend and, thus, commit more cash and cap to them.

We'll talk more about the offseason and players to watch in the weeks to come. But for now, know that the Broncos are in a better cap position than they were a year ago and, thus, have more flexibility when it comes to their offseason approach.

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