In analyzing the Denver Broncos’ offseason needs, it’s clear that they have nine positions that need attention. The positive aspect is that the Broncos are in a better salary cap position than they were last offseason.
However, before discussing available cap space, there are several factors that will affect how much room the Broncos will actually have. While they are projected to have around $63.4 million in cap space, this figure comes with a few important considerations.
First, the projection is based on a projected salary cap of $272.5 million. Second, it assumes that the Broncos will have 36 players under contract for the 2025 season.
Once the offseason begins, the “top 51” rule applies, meaning only the top 51 player salaries count toward the cap, allowing teams to carry up to 90 players on their roster. However, once the 2025 regular season starts, the entire roster will count against the cap.
Therefore, the Broncos will need to sign 15 more players before the “top 51” rule takes effect, which will reduce the available cap space.
How will the Broncos manage this? Let’s explore their options.
Futures Contracts The Broncos will likely begin by signing players to futures contracts, which take effect when the new league year starts. These contracts are typically for the league minimum based on accrued seasons and are usually not guaranteed. Many of these players may have spent time on the practice squad, while others may be free agents the team is interested in for the next season.
The Broncos currently have 16 players on the practice squad and are expected to sign 10-11 to futures contracts. These players typically have no more than two accrued seasons, with a few having three. The players likely to sign include linebacker Andrew Farmer, offensive guard Nick Gargiulo, defensive back Tanner McCalister, and running back Blake Watson, among others. Signing these players could result in a cap commitment of between $6 million and $8 million.
Exclusive Rights Free Agents (ERFAs) Another way the Broncos will reach the 51-player threshold is through Exclusive Rights Free Agents. These are players with no more than two accrued seasons who end the regular season on the active roster. ERFAs typically receive one-year, low-cost contracts without guaranteed money, making them a risk-free way to retain players. The Broncos’ current ERFAs include cornerback Ja’Quan McMillian, tight end Lucas Krull, defensive lineman Jordan Jackson, and others. Retaining all five of these players would cost about $4.5 million in cap space.
Re-Signing Their Own Players The Broncos also have the option of re-signing players whose contracts are expiring. They have 14 players who will become unrestricted free agents after the 2024 season. Some of the more significant players to watch for possible extensions include offensive tackle Garett Bolles, linebackers Justin Strnad and Cody Barton, and cornerback Tremon Smith. Additionally, long-snapper Mitchell Frabonit is a restricted free agent but could be kept on a short-term contract. Any players the Broncos re-sign before free agency starts will count against the cap, and their cap hits will depend on their new contracts.
Conclusion While the Broncos are in a better salary cap position than last year, various factors will reduce the available space. This doesn’t mean they will face a bad cap situation, but it does suggest they may not be major players in free agency, especially if they prioritize retaining their own players. The next step will be evaluating the available free agents and how they fit into the Broncos’ plans.
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