Everything You Need to Know About Broncos’ Salary Cap Challenges, Solutions

How much salary-cap space do the Broncos actually have and how can they create more to fulfill GM George Paton's "aggressive" vision for the 2026 offseason?

Feb 6, 2023; Englewood, CO, USA; General manager George Paton speaks during a press conference at the UCHealth Training Center. | Ron Chenoy-Imagn Images

As the Denver Broncos prepare for the 2026 offseason, many fans wonder how much salary-cap space they'll have available this year, especially after general manager George Paton explained during his end-of-season presser that he plans to be aggressive in free agency.

"We’ll do a deep dive on this team like we do every year, and we will determine our needs. We’ll be aggressive in filling those needs," Paton said on Tuesday.

As things currently stand, the Broncos are projected to have about $20.5 million in cap space, assuming a base cap of $295.5 million. That cap space is with 49 players under contract, and with the top-51 cutoff rule in effect for the offseason.

During the offseason, only the top 51 cap hits actually count toward the cap. Teams may have up to 90 players on the roster during the offseason, but only the top 51 count against the cap. The top-51 rule allows teams to acquire that many players while remaining cap-compliant.

There are a few things to keep in mind about the Broncos' 2026 cap situation. Today, we're diving into the Broncos' financial situation to break down how they can create more cap space to give Paton the resources he needs to realize his offseason vision.

Dead Money

Sep 17, 2023; Denver, Colorado, USA; Denver Broncos head coach Sean Payton talks with quarterback Russell Wilson (3) in the fourth quarter against the Washington Commanders at Empower Field at Mile High. | Isaiah J. Downing-Imagn Images

The concept of dead money is sometimes misunderstood. It's best described as cap space that's unavailable to a team after a player was released from his contract. Sometimes a player may have cash due, but that's not always the case.

For the Broncos, they no longer have the dead money charges from Russell Wilson, who was a post-June 1 designated cut in 2024. The post-June 1 cut allowed the Broncos to spread out dead money over two seasons, but his dead money charge in 2024 was higher because he had a fully guaranteed salary due that season.

The amount spread over two seasons was money already paid to Wilson in the form of a previous signing bonus (2022) and option bonus (2023), the latter treated as a signing bonus once exercised. Wilson had an option bonus for 2024, but the Broncos declined to exercise it, treating it as base salary that, thus, applied in full to the 2024 cap.

As for dead money the Broncos currently carry, they have about $1.2 milion from running back Audric Estime (who was waived after last training camp) and wide receiver Trent Sherfield (who was waived during the season). Both came from signing bonuses the two players received in their original contracts, but the cash has already been paid, and the Broncos don't owe any more.

That dead-money figure could increase, though, if the Broncos cut any more players from the roster who have any guaranteed salary due (cash yet to be paid) or any pro-rated amount from a previous signing or option bonus (cash already paid).

Post-June 1 Designation

Let's talk about the post-June 1 designated cut, which isn't quite the free ticket to gain more cap space right away, compared to a straight cut.

Teams are limited to two players to utilize the cut and, furthermore, the team carries the full cap hit until June 1. Thus, there's no immediate benefit to the salary cap.

The primary reason for using the post-June 1 is to avoid triggering future salary guarantees. That's exactly what happened with Wilson, whose 2025 base salary was set to become fully guaranteed had the Broncos not cut him before the 2025 league year began.

Thus, the post-June 1 cut is not what you want to utilize if you're trying to gain cap space immediately.

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Proven Performance Escalators

Jan 25, 2026; Denver, CO, USA; Denver Broncos wide receiver Marvin Mims Jr. (19) makes a catch against the New England Patriots during the first half in the 2026 AFC Championship Game at Empower Field at Mile High. | Ron Chenoy-Imagn Images

Two 2023 draft picks earned proven performance escalators: wide receiver Marvin Mims Jr. and cornerback Riley Moss. PPE means the player has a higher cap hit than he would otherwise.

Mims is projected to get a base salary of about $5.66 million because he was an original selection (not an alternate) to the Pro Bowl in 2023 and 2024. Moss is projected to get a base salary of about $3.6M because of the percentage of snaps he played the past two seasons.

The Broncos' projected cap space accounts for the salary increases for Mims and Moss, but it's important to note that if the Broncos keep both players, the team will have to account for the larger cap hits.

Option Bonuses

Nov 6, 2025; Denver, Colorado, USA; Denver Broncos defensive end Zach Allen (99) reacts against the Las Vegas Raiders during the first half at Empower Field at Mile High. | Ron Chenoy-Imagn Images

Finally, the Broncos' projected cap space assumes the team will exercise option bonuses for the players who have them. Again, if exercised, the option bonus is treated as a signing bonus and prorated for cap purposes.

The players who have option bonuses in their contracts for 2026 are defensive end Zach Allen, wide receiver Courtland Sutton, left tackle Garett Bolles, outside linebacker Nik Bonitto, center Luke Wattenberg, defensive tackle Malcolm Roach, and kicker Wil Lutz. While the option bonuses are not all due early in the 2026 offseason, it's likely the Broncos will exercise them early to gain more cap space.

With these players, there isn't much you can do with restructuring contracts to gain cap space. That's because the option bonus essentially serves that purpose, as restructuring means converting base salary or a roster bonus into a signing bonus to create cap room.

What to Expect Next

For the Broncos to gain more cap space, there are several options available to them. They can restructure contracts, as previously described; renegotiate contracts to convert base salary into incentives; trade players; or simply cut them.

If the Broncos are to be aggressive in free agency, whether through a trade or recruiting free agents, they will need to create more cap space to maximize their ability to be aggressive.

As for the moves to make, we will be talking about some potential moves in the next installment of our Broncos offseason preview.