Broncos' Salary Cap Analysis Post-Russell Wilson Extension

With the Denver Broncos setting their 53-man roster and practice squad, plus extending quarterback Russell Wilson, they now have a better idea of where they stand in terms of cap space.

Though final figures aren't clear, the Broncos are expected to have about $10.7M in cap space. This includes accounting for the retention of Eric Tomlinson and Mike Purcell, the recent signing of Darius Phillips, and the Wilson extension.

The Broncos have made a habit of keeping about $10M in cap space during the season, though the route by which they got there has differed. And though the Broncos are under new ownership, it doesn't appear that's going to change their approach to managing the cap.

It's actually good practice to have around $10M in cap space going into the regular season because it gives you enough wiggle room in case players are lost to injury. Remember that all players count toward the cap, even if they are placed on injured reserve.

Currently, the Broncos already have about $8.3M in cap space used by players on injured reserve. This includes wide receiver Tim Patrick, whose season ended after a torn ACL during training camp, and accounts for $4.6M against the cap.

The other player on IR with a cap hit above $1M is cornerback Michael Ojemudia, who counts for $1.295M against the cap. That hit will stay the same once he is brought back from IR.

Additional cap impact will happen when players brought back from short-term IR replace others on the active roster. Those players could then be moved to the practice squad, at which point their salary is reduced.

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There's also the chance the Broncos could gain cap space if they trade a player during the season. And while it's not likely the Broncos will acquire a player in trade, save for a player-for-player swap, that could take up cap space.

The other reason to have some cushion under the cap is any unused cap space in a given season may be rolled over into the next season. This allows the Broncos to get more wiggle room toward building the roster.

Exactly how much cap space will carry over to next season remains to be seen, but they will get some extra room thanks to a lower cap hit for Wilson than originally expected. The Broncos have other means to gain cap space, such as cutting a player or two, extending veterans who still have a year or two left on their current deals, or a restructure if absolutely necessary.

Bottom Line

Again, the Broncos' approach to the roster could change under new ownership, but it appears that general manager George Paton will continue to be smart in terms of cap management. That's a good thing because that will give the Broncos the best means to build the roster for years to come.'

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