The Denver Broncos are approaching the NFL free agency period with approximately $21 million in salary cap space, according to OvertheCap data. This financial flexibility arrives as the team looks to address key roster weaknesses, particularly at offensive playmaking positions and several defensive areas including linebacker, running back, and tight end. Head coach Sean Payton and general manager George Paton have recently voiced optimism about the current roster but emphasized the urgent need for improvements to sustain competitiveness.
This summer’s strategic decisions are further influenced by the official off-the-books status of quarterback Russell Wilson starting in the 2026 league year on March 11. With Wilson’s significant cap hit removed, Denver finds itself in its best salary cap health in years, boasting just $1.2 million in dead money penalties—the third-lowest figure in the NFL after Chicago’s recent trade of receiver D.J. Moore to Buffalo.
Cap Management and Early Moves Shape Denver’s Offseason Strategy
Last offseason, the Broncos entered free agency with roughly $40 million in cap space. While this season’s available funds have already been partially allocated, the team could recreate a similar financial position through contract restructurings, potential trades, and roster cuts. Some of these moves are expected within the next few weeks as Denver navigates the legal tampering window starting Monday.
Paton highlighted the importance of prudent financial planning at the NFL Combine, stating,
“Just think if we didn’t get those guys wrapped up, what we’d be facing,”
George Paton, General Manager
“Every offseason is a little bit of, ‘Wow, how are we going to feed…’ But if we didn’t have all those guys done, just think of how much more daunting the offseason would be. It’s really important to get ahead of it.”
The Broncos have indeed prepared by securing key impending free agents ahead of schedule during last fall’s bye week, locking in center Luke Wattenberg, defensive lineman Malcolm Roach, and kicker Wil Lutz with new contracts. Additionally, Denver expended $5.8 million to place a second-round restricted free agent tender on nickel cornerback Ja’Quan McMillian, with negotiations toward a longer-term deal anticipated this offseason. Just recently, the team also signed offensive lineman Alex Palczewski to a two-year agreement and will require roughly $4 million of salary cap space for their upcoming draft class in April based on current selections.
Potential Cap-Clearing Moves Involving Key Players
As the Broncos consider roster adjustments to expand flexibility, several players stand out as candidates for restructuring or release based on their cap figures and contract statuses. Here is an overview of notable cases:
Ben Powers, Offensive Lineman
Powers has no guaranteed money left and a cap charge projected at $18.155 million for 2026. The Broncos could lower his 2026 cap hit by nearly half through restructuring that guarantees some portion of his salary via a prorated bonus. Cutting or trading Powers now would save about $8.38 million against the cap but incur a dead money penalty near $9.775 million. His contract makes him a prime target for creative cap management.
Dre Greenlaw, Inside Linebacker
Greenlaw signed a three-year deal last spring, effectively structured as one year guaranteed for $11.5 million. Although he showed good performance when healthy, durability was a concern. Cutting him would free $6 million in cap space but cost $4.33 million in dead money, so Denver’s decision will hinge on whether they envision him as part of their future roster.
Evan Engram, Tight End
Engram carries a two-year contract signed last spring with stronger guarantees than Greenlaw’s. Releasing him would save $3.8 million on the cap while incurring $10.33 million in dead money, a significant financial burden. Without a clear replacement, moving on from Engram would be financially risky and strategically questionable at present.
Matt Peart, Offensive Lineman
Peart was brought in last year as a versatile swing tackle option but suffered a torn MCL in Week 6. Promising performances by Palczewski and Frank Crum during the season suggest Denver could save money by releasing Peart. Cutting him would save $3.225 million with a modest dead money amount of $750,000.
Brandon Jones, Safety
Jones is in the final year of a three-year $20 million deal, which has been cost-effective for Denver. However, a torn pectoral injury sidelined him during critical late-season games. His 2026 cap is currently $9.243 million but could be reduced if an extension is agreed upon. Alternatively, cutting Jones would free $7.41 million in cap space with $1.83 million in dead money, making him a possible salary cap casualty depending on roster direction.
Marvin Mims, Wide Receiver
Mims enters the concluding year of his rookie deal with a $6.12 million cap hit. While head coach Payton has signaled intent to increase Mims’ offensive role, contract extension discussions remain delicate due to inconsistent usage patterns juxtaposed with his strong special teams contributions. A mid-season extension could be a more pragmatic approach.
Mike McGlinchey, Right Tackle
Despite the recent signing of Palczewski, Denver is unlikely to cut McGlinchey given his solid 2025 performance. Releasing him now would cost $15.325 million dead money but save $8.45 million in cap space. A short extension might be an attractive option to reduce his 2026 cap charge—currently the team’s highest at $23.775 million—while preserving stability at right tackle through the upcoming season.
Implications for the Broncos Moving Forward in Free Agency
Denver enters this free agency window in a relatively strong cap position compared to previous years, providing them with critical financial tools to enhance the roster. The team’s recent proactive approach to contract extensions has mitigated an overwhelming cap battle, enabling the Broncos to focus on targeted upgrades rather than major rebuilds.
The evolving decisions regarding potential restructures, cuts, and signings will have a direct effect on the Broncos’ ability to add playmakers on offense and fortify defensive depth, particularly at linebacker and tight end. With the legal tampering period about to begin, Denver’s front office must carefully balance maintaining core contributors while pursuing improvements that address evident weaknesses.
The upcoming months will test the Broncos’ strategic acumen, as they navigate contract complexities and roster management with urgency to position themselves for sustained competitiveness. Fans and analysts alike will watch closely how George Paton, Sean Payton, and the Broncos’ leadership leverage their salary cap space to reinforce the squad before the 2025 NFL season unfolds.
