Details Emerge on New Broncos TE Evan Engram's Contract: Grade

Did the Denver Broncos get good value in the Evan Engram contract?

JACKSONVILLE, FL - SEPTEMBER 17: Jacksonville Jaguars tight end Evan Engram (17) runs with the ball during the game between the Kansas City Chiefs and the Jacksonville Jaguars on September 17, 2023 at EverBank Stadium in Jacksonville, Fl. | David Rosenblum / IMAGO / Icon Sportswire

Denver Broncos free agency rolls on. I'm breaking down each free agent the Broncos have either signed or re-signed to multi-year contracts, examining the details, as provided by Over The Cap, and evaluating how the team did with the player in question and the market for the position.

We'll next look at tight end Evan Engram, who was released by the Jacksonville Jaguars before the new league year. He signed with the Broncos on Wednesday on a two-year, $23 million contract.

Contract Details

• 2025: $8M signing bonus (fully guaranteed), $2.99M base salary (fully guaranteed), $510K roster bonus (fully guaranteed).
• 2026: $10.99M base salary ($5M fully guaranteed), $510K roster bonus.

Cap Charges

• 2025: $7.5M
• 2026: $15.5M

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Gut Reaction

Engram originally signed a three-year, $41.25M contract with the Jaguars, so he took slightly less in APY salary from the Broncos. He got the same amount of fully guaranteed money from the Broncos that he had received in his contract with the Jaguars.

The contract ranks Engram 10th overall for average-per-year salary after ranking seventh on his previous deal. It's fair to ask whether he should still be one of the 10 highest-paid tight ends but he's just one season removed from having 114 receptions for nearly 1,000 yards.

The contract is structured to be cap friendly in 2025 and ensures Engram will collect every penny. In 2026, there's a $5M full guarantee but it gives the Broncos the option to ask Engram to convert some salary into incentives in case Engram doesn't play well in 2025.

If necessary, the Broncos could cut him without a lot of pain, particularly if Engram signed with another team and his salary offset what Denver would owe him.

I don't blame the Broncos for pursuing Engram once he became available. I might argue that the Broncos should have given Engram a little less in APY salary or full guarantees, but that doesn't mean I think the team got a bad deal, and it's worth mentioning they were competing for the tight end's services in the division with the Los Angeles Chargers.

The good news is the Broncos got this deal done when they still have quarterback Bo Nix on a cost-controlled contract. While Engram's deal isn't good value, it's the type of contract you can give when you're not spending a lot of money on your quarterback.

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