What is the current status of the Denver Broncos’ salary cap following a week of active roster adjustments?
Heading into the 2024 offseason, the Denver Broncos were initially forecasted to exceed the salary cap by a considerable margin. However, following a series of transactions over the past week, the Broncos have addressed this issue.
The team made several notable moves, including the release of safety Justin Simmons, the trade of wide receiver Jerry Jeudy, the restructuring of wide receiver Tim Patrick’s contract, and the release of tight end Chris Manhertz. Additionally, they restructured offensive tackle Mike McGlinchey’s contract.
These actions have resulted in the Broncos now possessing $30.5 million in available cap space with 59 players currently under contract, marking a significant improvement compared to their previous financial situation. However, this figure does not incorporate the recent two-year contract extension, potentially worth up to $9 million, awarded to safety P.J. Locke.
To achieve this, the Broncos adjusted Patrick’s salary to the veteran minimum of $1.125 million, along with a $170,000 per-game roster bonus, with possible additional incentives included in the deal, which would impact the 2025 cap.
McGlinchey’s contract underwent alterations as well, with his base salary reduced from $15 million to $1.125 million, and the remaining amount converted into a signing bonus. Furthermore, the team introduced a void year in 2028 for cap purposes.
Despite the increased flexibility in their salary cap, the Broncos remain cautious about spending extravagantly in free agency, especially after a significant spending spree in the previous year. General Manager George Paton has indicated a more conservative approach for the initial phase of free agency, with a potential focus on value deals in the later stages.
Another consideration is the handling of Russell Wilson’s contract situation. The Broncos may opt to decline his 2024 option bonus, resulting in a substantial dead-money charge of $53 million with a post-June 1 designation, as opposed to a $35.4 million dead money charge with the option bonus exercised.
Furthermore, there are uncertainties regarding the offset of Wilson’s 2024 salary and the possibility of additional roster adjustments, such as the potential release or salary reduction of defensive tackle D.J. Jones.
Despite these ongoing deliberations, the Broncos have significantly improved their salary cap situation. However, given indications of a forthcoming rebuild, they are expected to exercise prudence rather than making extravagant moves in free agency.