Extension Impacts on the Denver Broncos' Salary Cap

In the NFL, contract extensions are a double-edged sword: they let teams retain core talent but also reshape the salary cap landscape, influencing roster decisions for years. For the Denver Broncos, who have built momentum with an eight-game winning streak in 2025, recent extensions for key players like quarterback Bo Nix and edge rusher Nik Bonitto have been critical to maintaining their competitive core—yet they’ve also required careful cap management to avoid limiting future flexibility. Extension Impacts on the Denver Broncos' Salary Cap explores how these deals are structured, their immediate and long-term cap hits, and how the Broncos’ front office has balanced retention with financial stability. For a team aiming to sustain a championship window, understanding these cap impacts isn’t just about numbers—it’s about ensuring they can keep their best players while still adding depth.

Extension Impacts on the Denver Broncos' Salary Cap begins with the most high-profile extension of 2025: quarterback Bo Nix’s five-year, \(150 million deal signed in March. To minimize Nix’s 2025 cap hit, the Broncos structured the contract with a \)40 million signing bonus, which is prorated over the five years of the deal (adding \(8 million to the cap each season) rather than counting fully in the first year. This move kept Nix’s 2025 cap hit at \)12 million—well below the league average for starting quarterbacks (\(25 million)—freeing up space to sign other key players, including defensive tackle D.J. Jones and wide receiver Courtland Sutton to shorter extensions. “Structuring Bo’s deal with a large prorated bonus was a strategic choice,” said Broncos general manager George Paton in a press conference. “We wanted to keep our 2025 cap flexible to build around him, while still rewarding him for his growth. This way, we don’t have to choose between our quarterback and the supporting cast.” The tradeoff, however, comes in future years: if Nix’s performance declines or the Broncos need to move on, the remaining prorated bonus (\)24 million over 2026-2028) would count as dead cap space—a financial burden that could limit roster moves. For now, though, the extension has allowed the Broncos to keep their franchise quarterback without crippling their immediate cap.

Another impactful extension has been edge rusher Nik Bonitto’s four-year, \(60 million deal signed in July 2025. Unlike Nix’s deal, Bonitto’s contract includes a smaller signing bonus (\)12 million, prorated at \(3 million annually) but larger annual base salaries that increase each year: \)8 million in 2025, \(10 million in 2026, \)14 million in 2027, and \(16 million in 2028. This “back-loaded” structure keeps Bonitto’s 2025 cap hit at \)11 million, which aligns with his breakout production (12 sacks through 14 games) while pushing higher costs to later seasons—when the NFL salary cap is expected to rise (projected from \(255 million in 2025 to \)280 million by 2027). “Nik’s deal is built to grow with the cap,” explained Paton. “His 2028 salary will feel less burdensome when the cap is higher, and we have the option to restructure the deal later if needed.” This flexibility is key: if the Broncos need to free up cap space in 2026 or 2027, they could convert part of Bonitto’s base salary into a signing bonus to prorate the cost. Extension Impacts on the Denver Broncos' Salary Cap highlights this back-loaded structure as a smart way to reward emerging talent without sacrificing future flexibility.

Extension Impacts on the Denver Broncos' Salary Cap also delves into how these extensions have affected the Broncos’ 2025 cap space—and what it means for in-season moves. After signing Nix, Bonitto, and three other key players to extensions, the Broncos entered the 2025 season with approximately \(18 million in remaining cap space—more than enough to sign practice squad players to active roster deals or make midseason trades for depth. For example, in October 2025, they used \)3 million of that space to acquire backup running back Samaje Perine from the Cincinnati Bengals, a move that strengthened their run game during Javonte Williams’ two-game injury absence. “Having that extra cap space gave us the ability to respond to injuries and opportunities,” said Broncos salary cap manager Alex Smith. “If we’d structured our extensions with higher 2025 hits, we wouldn’t have been able to add Samaje—and that could have cost us games during the streak.” For the Denver Broncos, this flexibility has been a secret weapon during their winning run: they’ve avoided the “cap crunch” that forces some teams to cut key players midseason, instead keeping their roster intact and adding depth when needed. This stability has directly contributed to their consistency on the field, as players haven’t had to worry about roster turnover or last-minute changes.

Beyond 2025, the extensions will shape the Broncos’ cap for years to come—especially as they look to retain other core players, like wide receiver Jerry Jeudy and left tackle Garett Bolles, whose contracts expire after the 2026 season. The Broncos currently project to have \(45 million in cap space in 2026, but that number could shrink if they need to restructure existing deals or sign new extensions. For example, if Jeudy demands a contract similar to other top wide receivers (around \)25 million annually), the Broncos may need to convert some of Nix’s or Bonitto’s future base salaries into signing bonuses to free up space. “We’re already planning for 2026 and beyond,” Paton said. “Every extension we sign now has to consider how it impacts our ability to keep other key players later. It’s a balancing act—you don’t want to win now at the expense of winning later.” For the Denver Broncos, this long-term planning is critical to sustaining their championship window. Unlike teams that “win now” by pushing cap costs to the future, the Broncos have aimed for a sustainable model: rewarding current stars while leaving room to retain emerging talent and add depth each offseason. This approach has worked so far—their 2025 streak is built on a mix of extended veterans and young players on rookie contracts—and it could keep them competitive for years.

Extension Impacts on the Denver Broncos' Salary Cap concludes with a look at how these cap decisions reflect the Broncos’ overall philosophy: building a team that can win now and later. By structuring extensions with prorated bonuses, back-loaded salaries, and flexibility to restructure, the Broncos have avoided the common pitfalls of salary cap mismanagement—like dead cap space from bad contracts or having to cut key players to afford others. Instead, they’ve created a roster where their highest-paid players (Nix, Bonitto, Sutton) are also their most productive, and where cap space is available to address needs as they arise. For the Denver Broncos, the salary cap isn’t just a constraint—it’s a tool to build a culture of consistency. When players know their team is committed to retaining talent and avoiding short-term fixes, they’re more likely to buy into the long-term vision. As the Broncos head into the 2025 playoffs and beyond, their cap management will remain a key factor in their success. In the end, Extension Impacts on the Denver Broncos' Salary Cap isn’t just about contracts and numbers—it’s about how smart financial decisions can turn a talented roster into a sustained contender. And for the Broncos, that’s exactly what they’re building.