Broncos' Contract Strategy: Extend Zach Allen Now, Wait on Nik Bonitto

The Denver Broncos have two critical players up for extensions this offseason: rush linebacker Nik Bonitto and defensive end Zach Allen. While it is easy to see that the Broncos should extend them both, each player's timeline should be vastly different.

When it comes to Allen, the Broncos should prioritize an extension and get him locked up long-term in the next couple of months. For Bonitto, the team should wait until after the 2025 season.

Let's examine the reasons why.

Cost is Only Going Up

When the Broncos signed Allen in the 2023 offseason, they did so for a three-year, $45.75 million contract, which was viewed as an overspend. However, he quickly proved his worth in his first season with the Broncos and grew even more in his second season.

Allen's cap hit for the 2025 season is the 15th-highest for interior defensive linemen, despite him being a top-five player at his position this past season. While the defensive line free-agent crop won’t break the bank and benefit Allen by signing big deals, multiple players are at a point where they can ask for an extension, which could significantly increase the cost of Denver retaining him long-term.

The Broncos should rush Allen's contract extension before those contracts come in, and they have to pay him even more. He's a proven player with multiple years of great production, and he has become excellent against the run and as a pass rusher.

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Wait & See

It's almost always more beneficial for teams to get a deal done earlier than later, but Bonitto is one of those exceptions. Much like with Allen, plenty of edge rushers are approaching contract extensions, and Bonitto will keep an eye on them.

Bonitto is coming off a career year, including his first Pro Bowl, and proved to be a more than capable pass rusher. Despite this, the Broncos would be better off waiting to pay Bonitto more to see if he can replicate what he did as a pass rusher and improve as a run defender.

While it is unlikely that Bonitto will ever become a great run defender, there is room for him to be serviceable. Over the 2025 season's final few games, there was a target from the opposing teams on the ground, and it was Bonitto.

It could also be beneficial for Bonitto to bet on himself. Right now, he's looking at a deal in the range of $18-22 million on an average per year. It's great money, but if he can replicate his year as a pass rusher and improve as a run defender, he can push himself into the $24-plus million range.

If Bonitto fails, he might lose some money; that's part of the risk. It's worth noting that he and the Broncos would both have the franchise tag to use in negotiations.

Players use the franchise tag as a baseline, and the Broncos could threaten the use of the tag. If the team is willing to use it as a threat for two years and pay the player the tag amount, it can work something out in a long-term deal. The player may end up with less annually than the franchise tag, but their initial two-year cash flow is a little more than two years of playing on the tag.

Bottom Line

It's a risk worth taking with Bonitto. His career year was excellent, but he has to prove he can replicate it. You don’t have that same mentality with Allen because he has proven it in back-to-back years while showing improvement in areas he struggled with.

Waiting on Bonitto is a gamble, but it's a risk worth taking, considering how the market sits for players like him. The Broncos should get Allen done before training camp.

Cost is Only Going Up

Wait & See

Bottom Line

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