How 3 Recent Extensions Changed Broncos’ 2026 Salary-Cap Outlook

It's time to update the Denver Broncos' 2026 salary-cap outlook after the team extended three players in-season.

Feb 27, 2024; Indianapolis, IN, USA; Denver Broncos general manager George Paton speaks during a press conference at the NFL Scouting Combine at Indiana Convention Center. | Kirby Lee-Imagn Images

With the Denver Broncos having signed three pending free agents to extensions during the season, the next question is how much cap space they'll have available to further improve the roster in 2026.

As things currently stand with the 2026 salary cap situation, the Broncos are projected to have $40.1 million in cap space, assuming a base cap of $295.5 million.

There are a few caveats that come with that projected cap space, though. The first is that the Broncos currently have 41 players under contract for 2026. Once they add at least 10 players (likely practice squad players signed to futures contracts), the Broncos will be down to a little less than $30M in cap space.

When the Broncos do get to 51 players under contract, and the offseason officially begins, only the top 51 cap hits will count toward the salary cap. However, the Broncos will also need to account for any 2023 draft picks who are set to earn proven performance escalators. That will further eat into the cap space.

There may also be a couple of players who earn incentives from their 2025 contracts and that takes up 2026 cap space as well. It's possible the Broncos could be closer to $20M in cap space when all is said and done.

But that still allows some room to work with — just not as much as the Broncos have had in the past. Once they go about tendering any exclusive rights free agents or restricted free agents, that will eat into available space — though players with smaller cap hits will fall past the top 51 cutoff and not count toward the cap.

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Ways to Free Up Space

Denver Broncos GM George Paton and head coach Sean Payton. | Gabriel Christus/Denver Broncos

It's possible the Broncos cut a player or two who is under contract for 2026. Another possibility is that the Broncos renegotiate the contract for a player or two to lower their cap hits.

Opportunities to restructure contracts may be limited because so many players have option bonuses in their 2026 salaries. Those option bonuses, if exercised, are treated as signing bonuses and thus eliminate the possibility of a restructuring for more cap space.

The Broncos might not have to be as aggressive in 2026 free agency as they were in the past. They can focus more on keeping current players, though there's a chance they could add a free agent or two from another team.

We'll talk more about the factors that will impact the cap situation after the season, but we do know that Broncos general manager George Paton has figured out ways to navigate the cap. After all, the Broncos did carry significant dead money from the failed Russell Wilson extension and still managed to add players and win double-digit games in each of the past two seasons.

Once again, Broncos fans shouldn't fret too much about the cap. While the Broncos might not make a big splash in free agency, they should still be able to address a few needs without much trouble.