With the Denver Broncos likely being finished with major signings in free agency, it's time to look at where the team's cap situation currently stands and what that means for the coming months.
The Broncos currently have $17.415 million in cap space, according to Over The Cap. That figure does not include the signing of punter Matt Haack, but his $1.255M salary shouldn't result in a significant change in the cap.
That's because, during the offseason, only the top 51 cap hits count toward the salary cap. Once the 53-man roster and the 15-member practice squad are set after training camp, plus any players placed on injured reserve, all players count toward the cap.
The Broncos do have their draft picks to add, but the effective cap space they will take up is projected to be $3.2M after accounting for any player who would fall below the top 51 cutoff. Therefore, until the Broncos get closer to training camp, they don't have much to concern themselves about the cap situation.
The question becomes what could happen after training camp. Depending on how the final roster takes shape, the Broncos could look at multiple means of freeing cap space and ensuring all players on the roster, practice squad, and injured reserve fit under the cap.
The first way is through extending players currently under contract. Defensive end Zach Allen and wide receiver Courtland Sutton are two candidates for extensions, and in both cases, it would lower their cap numbers. Sutton currently has a $20.2M cap charge, with Allen at $19.8M for 2025. Extensions could significantly reduce those numbers.
All-Pro rush linebacker Nik Bonitto is another candidate for an extension but his cap charge is currently $5.7M. An extension isn't guaranteed to lower his cap number, and if it did, it wouldn't be by a significant amount.
The second way is by cutting players. Safety P.J. Locke is one to keep an eye on because cutting him would free $4.19M in cap space. The Broncos have several players on cheaper salaries who could provide safety depth, so they might not have room for Locke.
The same could apply to inside linebacker Alex Singleton, who carries a cap charge of nearly $7M, but cutting him would free about $5.6M in cap space. However, it's likely the Broncos will want to keep Singleton unless Drew Sanders makes a strong impression in training camp and the team drafts a linebacker early.
The other player to keep an eye on is tight end Adam Trautman, as cutting him would free $2.5M in cap space. His status likely depends on two things: how early the Broncos draft a tight end and how Lucas Krull performs in training camp.
The main thing to keep in mind with potential cuts down the road is how younger players perform. If younger players on cheaper deals impress in training camp, the Broncos could move on from higher-paid, tenured veterans. If not, the Broncos may be inclined to keep them.
Other ways to free up cap space are by renegotiating with players to convert base salary into incentives or by trading players. Of course, there is the option to restructure base salary into a signing bonus, but given the other means available to the Broncos, restructures aren't necessary.
The Broncos have more than enough cap space to work with during the offseason and they have the means to stay under the cap after training camp without restructuring deals. Unlike last season, when the Broncos were in a salary cap squeeze after cutting ties with Russell Wilson, the team is in a better position when it comes to navigating the cap.
