Breaking Down Evan Engram's Broncos Future

We've been breaking down the Denver Broncos' salary-cap situation for 2027 and beyond. One way the Broncos can help themselves is by cultivating plenty of cap carryover from 2026.

Teams are allowed to carry over unused cap space from one season to the next season. That carry-over is then added to the base salary cap to give the team's actual cap number for the next season.

One way teams might gain cap space to carry over is by parting ways with players in the final year of their contracts, though that can still come with a cost, whether it's cash still owed or the risk of not having players on the roster who can fill those roles.

There have been rumors about the Broncos possibly parting ways with tight end Evan Engram before the 2026 season starts. But what are the ramifications of doing so?

Let's examine.

Contract Status

Engram enters the final year of a two-year deal he signed with the Broncos in 2025, after being cut by the Jacksonville Jaguars. He is due $10.99 million in base salary and a $510K per-game roster bonus, of which $5 million is fully guaranteed.

For 2026, Engram carries a cap charge of $14.14 million. His contract has a void year in 2027 for cap purposes, and if he isn't re-signed, the Broncos would take a $2.67 million dead-money charge for 2027.

Future Outlook

Evan Engram. — Denver Broncos tight end Evan Engram (1) during pregame against the Indianapolis Colts at Lucas Oil Stadium in Indianapolis, Indiana. | John Mersits / IMAGO / ZUMA Press Wire

It won't surprise anyone that the Broncos are unlikely to bring Engram back for 2027 when his deal expires. The question, though, is whether the Broncos are prepared to move on from Engram after 2026 training camp.

If the Broncos cut Engram after training camp, they can spread out dead-money charges over two seasons because the release happens after June 1. They would take a $7.67 million dead-money charge and gain $6.47 million in cap space.

Although Engram is due $5 million in fully guaranteed salary, the Broncos have shown they are fine with sunk costs if they don't want to keep a player. Therefore, the guaranteed money wouldn't prevent them from cutting Engram if it comes to that.

However, just because the Broncos are willing to deal with sunk costs does not mean they will cut Engram. While it's encouraging to hear that players such as Caleb Lohner and Justin Joly impressed in rookie minicamp, the Broncos need to see how they and other players perform in training camp and the preseason.

If the Broncos determine their younger tight ends aren't ready to take on larger roles in the offense, they will keep Engram. Should one or more of the younger tight ends make a big impression, though, it could force the Broncos' hand when it comes to Engram.

Of course, a trade can't be ruled out, even if it might be a long shot. It's possible the Broncos could do a draft pick swap with another team or perhaps agree to pay Engram's $5M in full guarantees as part of a trade.

The other possibility is the Broncos could still ask Engram to convert some of his non-guaranteed base salary into incentives to lower his cap charge. The thing to keep in mind, though, is any incentives Engram earns would apply to the 2027 cap.

The Takeaway

At this point, the assumption should be that Engram will make the Broncos roster in 2026 unless one or more of the younger tight ends make a strong impression.

Engram didn't exactly impress in 2025, but the Broncos aren't going to put all their chips into the younger tight ends just yet. The first offseason workouts are just one step along the way, and there are many more coming to see how the younger tight ends progress.

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