Broncos Now Lead the NFL in Cap Dollars Invested on Defensive Side of Ball

GM John Elway is doing what he can to maximize Drew Lock's cost-controlled rookie contract.

Denver Broncos' GM John Elway has a history of prioritizing the defensive side of the ball when it comes to roster-building. Elway’s own reflective post-mortem in the aftermath of Super Bowl XLVIII revealed to him a flawed reliance on offensive fireworks.

Elway’s soul searching gave rise to a radical rethink as he mirrored the defense-first approach of the Seattle Seahawks, who'd drubbed the Broncos 43-8 on the biggest stage, by assembling an aggressive defensive unit with high-priced alpha dog talents like Aqib Talib, DeMarcus Ware and T.J Ward joining the team as mercenaries in 2014.

The ultimate validation for the change of team-building philosophy arrived two years later when the Broncos' all-time defense Elway put together carried Peyton Manning’s once devastating offense all the way to the Super Bowl 50 championship.

Four consecutive seasons without playoff football appears to have seen Elway double down on his old defense-first strategy. So far he has completed two trades for experienced defensive help and the Broncos' GM is paying the price when it comes to the salary cap.

Recent analytical data compiled by Sportrac would seem to reinforce this theory that Elway has reprioritized the defense. Financially, the Broncos are spending many more dollars on stopping teams from scoring points than they are in putting their own on the board, as The Athletic's Nicki Jhabvala recently illustrated.

Per @Spotrac, the Broncos currently have the most cap dollars allocated to defense of any team in the NFL (~$123M; 57.3% of their cap).

They have the second-lowest cap allocation on offense (~$63M; 29.6%).

— Nicki Jhabvala (@NickiJhabvala) April 10, 2020

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Putting that investment in context, it’s worth comparing and contrasting that $123M defensive figure with that of the Broncos' offense, which is totals 29.6% of the salary cap at $63M. This figure ranks as the second-lowest number of all the NFL teams when it comes to cap dollars invested on offense.

These dollar figures allocated to the offense are not likely to move the needle too much on the Broncos' bean-counting machine in the immediate future either. That’s because defensive spending will rise due to safety Justin Simmons being next in line for a multi-year contract extension, which is likely to eclipse the team's franchise-tag designation that will pay him $12.7M in 2020.

Due to Simmons' age, at only 26, and his stellar play he will likely receive a front-loaded contract with plenty of guaranteed money. While it’s a safe bet to assume that Elway will orchestrate an offense-oriented draft process on April 23, the Broncos' 10 draft picks are only expected to consume just north of $9M on the cap, and that's if all 10 picks are made.

If we dig in behind the analytics, it provides us with a clear indicator that Elway is solidifying one of his tried and tested templates for success. Sticking to building with defense first is undoubtedly helped by the window of opportunity provided by Drew Lock's cost-controlled contract. Lock's emergence late last season allowed Elway to be brave and bold while conducting his offseason business.

Elway's opening gambit was also a classic counter bluff as he opted to use low-value draft picks to target quality veteran talents via trades, like CB A.J. Bouye (acquired with a fourth-round pick) and Pro Bowl DL Jurrell Casey (seventh-rounder). Elway got both veterans for relatively cheap compensation via trade, but both bring a contract that'll debit the Broncos' salary cap by double-digit millions in 2020. 

This strategy also served to navigate the notoriously choppy waters of the first wave of free agency where overspending can hinder more than help. Instead of throwing crazy dollars at unrestricted free agents, Elway used his draft capital and salary-cap space obtained from trading away WR Emmanuel Sanders and releasing QB flop Joe Flacco to maximum effect.

When you rewind and look at how Elway has approached building from the defense up, you see the recurring pattern. The clever twist he has added by way of the trade market has accomplished the feat of adding proven talent on manageable contract terms.

Further tricks could well be hidden up Elway's sleeve after the draft is concluded with some space left over to possibly furnish Simmons with his new contract, which could create additional cap flexibility to have a little cushion of cap space to add any emergency veteran help.

Even with the $16M splurge Elway made to sign RB Melvin Gordon, it's sticking doggedly to the defense-first strategy that remains the obvious focus of the Broncos' front office. Again, the $123M/$63M ration favors the defense financially by double. 

But you know what they say. Defense wins championships.

Follow Keith on Twitter @KeithC_NFL and @MileHighHuddle.