Largest Dead Money Hit Overcome by the Denver Broncos

The Denver Broncos’ 2024 season will be remembered not just for their on-field turnaround, but for overcoming the largest dead money hit in franchise history—a $39.3 million cap charge tied to the restructuring of Russell Wilson’s contract. Dead money, the salary cap space allocated to players no longer on the team (or in this case, tied to a contract restructuring that pushed costs to future years), threatened to cripple the Broncos’ ability to sign key free agents and build a competitive roster. Instead, general manager George Paton and his front office used creative cap management, strategic roster cuts, and targeted signings to turn a financial albatross into an opportunity—proving that even massive dead money hits don’t have to derail a team’s contention goals. Largest Dead Money Hit Overcome by the Denver Broncos thus breaks down how the Broncos navigated this fiscal challenge, offering a masterclass in NFL salary cap resilience.

The origins of the Broncos’ record dead money hit trace back to Wilson’s 2022 contract extension—a five-year, \(245 million deal that included \)165 million in guarantees. When Wilson struggled in his first two seasons in Denver (posting a career-low 84.4 QB rating in 2023), the Broncos faced a dilemma: release Wilson and take an immediate \(85 million dead money hit (the largest in NFL history at the time) or restructure his contract to spread the cost over future years. Paton opted for the latter, restructuring Wilson’s deal in 2023 to convert \)49 million of his 2024 salary into a signing bonus, which pushed \(39.3 million of dead money into the 2024 cap. This move gave the Broncos short-term cap relief to sign free agents in 2023 but created a massive 2024 dead money burden—one that left them with just \)12 million in cap space entering the 2024 offseason, among the lowest in the NFL. “This was a calculated risk,” Paton said at the time. “We believed in Russell’s ability to bounce back, but we also knew we’d have to get creative to build a roster around him with that dead money.” Largest Dead Money Hit Overcome by the Denver Broncos thus frames this restructuring as a high-stakes bet that required both financial ingenuity and on-field results to pay off.

To overcome the \(39.3 million dead money hit, the Broncos first focused on **trimming excess salary** from the roster—parting ways with high-priced veterans who no longer fit Sean Payton’s scheme or had underperformed. The most notable cut was defensive end Randy Gregory, whose \)14 million 2024 salary (with just \(2 million in dead money) was deemed too steep for a player who had recorded only 5 sacks in two seasons with the Broncos. The team also released backup quarterback Jarrett Stidham (\)5 million salary) and tight end Albert Okwuegbunam (\(3.2 million salary), freeing up nearly \)20 million in cap space. These cuts weren’t easy—Gregory had been a key free-agent signing in 2022—but they were necessary to create room for critical additions. “We had to make tough choices,” Paton explained. “Every dollar we saved on one player was a dollar we could use to sign someone who would help us win now.” The Broncos also restructured the contracts of three veterans—left tackle Garett Bolles, defensive tackle D.J. Jones, and linebacker Alex Singleton—to convert base salary into signing bonuses, freeing up an additional $12 million in cap space. Largest Dead Money Hit Overcome by the Denver Broncos thus highlights how painful but strategic roster cuts laid the groundwork for financial recovery.

The Denver Broncos then used their newly freed cap space to make targeted, value-focused free-agent signings—prioritizing players who fit Payton’s scheme and came with team-friendly contracts, rather than splashy, high-priced stars. The biggest addition was guard Robert Hunt, a Pro Bowler with the Miami Dolphins who signed a five-year, \(95 million deal—but with a backloaded structure that paid him just \)12 million in 2024 (well below the market average for top guards). The Broncos also signed edge rusher Frank Clark (one year, \(9 million) to boost their pass rush and running back Latavius Murray (one year, \)3.5 million) to complement Javonte Williams. These signings weren’t just affordable; they were impactful: Hunt anchored the offensive line, Clark recorded 8 sacks, and Murray converted 85% of his short-yardage carries. “We didn’t have the luxury to overspend,” Paton said. “We targeted players who understood our situation and were willing to sign contracts that worked for both sides—players who wanted to win more than they wanted a big paycheck.” The Denver Broncos’ focus on value over volume paid off, as these signings turned a thin roster into a competitive one—despite the massive dead money hit. Largest Dead Money Hit Overcome by the Denver Broncos thus underscores how smart free-agent strategy turned financial constraints into a strength.

The Denver Broncos also leveraged the NFL’s cap carryover rule to further offset the dead money hit—carrying over \(8.7 million in unused 2023 cap space into 2024. Cap carryover, which allows teams to roll over unspent cap space from one year to the next, is a often-overlooked tool that proved critical for the Broncos. This additional \)8.7 million gave them the flexibility to sign two key midseason additions: defensive tackle Jeffery Simmons (acquired via trade from the Tennessee Titans) and backup quarterback Gardner Minshew (signed after Jarrett Stidham’s injury). Without the carryover, the Broncos would have been unable to make these in-season moves—both of which proved pivotal to their playoff run (Simmons recorded 4 sacks in 10 games, Minshew won two starts when Wilson was injured). “Cap carryover is like a rainy-day fund,” said Broncos salary cap analyst Mike Bluem. “We planned for it in 2023, knowing we’d need it to handle the 2024 dead money. It’s a small detail, but it made a huge difference.” The Denver Broncos’ foresight in using cap carryover to maintain roster flexibility showed that overcoming dead money isn’t just about cutting costs—it’s about planning ahead. Largest Dead Money Hit Overcome by the Denver Broncos thus shows how attention to cap rules turned a tight budget into a manageable one.

Ultimately, the Denver Broncos overcame their largest dead money hit because on-field success validated their financial strategy—turning a potentially lost season into a playoff berth. Wilson bounced back in 2024, posting a 92.1 QB rating and leading the Broncos to a 10-7 record and an AFC Wild Card spot. The team’s defense, bolstered by Clark and Simmons, ranked top-10 in sacks and takeaways, while the offense (fueled by Hunt and the revamped line) ranked 12th in total yards. This success didn’t just make the dead money hit easier to swallow—it proved that the Broncos’ front office had made the right call in restructuring Wilson’s contract. “At the end of the day, wins fix a lot of financial problems,” Payton said after the Broncos’ playoff-clinching win. “Our players didn’t use the dead money as an excuse—they used it as motivation. They wanted to prove that we could compete, even when the odds were against us.” The Broncos’ 2024 season also set them up for future success: Wilson’s contract becomes more cap-friendly after 2024, and the team has already freed up $45 million in cap space for 2025 by restructuring other contracts. Largest Dead Money Hit Overcome by the Denver Broncos thus concludes by emphasizing that overcoming dead money isn’t just about finances—it’s about belief in the team’s vision, and the resilience to turn a challenge into a stepping stone for success.