The Denver Broncos lost nearly $10 million in cap space without adding anyone to the roster
The Denver Broncos made a surprising accounting move but it actually makes perfect sense.
The Denver Broncos have reportedly made a surprising strategic decision. It’s one that will cost the team nearly $10 million in 2026 salary cap space. No, they didn’t trade for a big addition, nor did they land a free agent splash. As a matter of fact, this move involves not adding anyone at all.
But it does have some long-term ramifications. The Broncos, per a report from Jason Fitzgerald of the salary cap resource OverTheCap.com, declined an option in wide receiver Courtland Sutton’s contract. It would have allowed them to spread $12 million out across future years of the salary cap.
The Denver Broncos have declined WR Courtland Sutton’s option bonus, will take full cap charge up front in 2026
Sutton’s deal had him owed a standard salary this year, plus a scheduled “option bonus”, which works just like a signing bonus. By a certain date, the player is owed a check for whatever that option bonus is. If the team elects to write the check, they can prorate that amount across up to five years of the salary cap. In the case of a $12 million option bonus, that would have equated to $2.4 million per season from 2026 through 2030.
Denver has declined the option, though. That means Sutton still collects that $12 million. But it’s added into his weekly game checks along with what his prior base salary was scheduled to be.
There’s no change in cash for Sutton, it’s just a formality of how (and when) he receives it. For Denver, this could be about a few things. They could see their long-term vision not including Sutton and wanted to not push any more debt against the cap into the future if he’s not going to be on the team long-term. Or, alternatively, they could see their current wiggle room against the cap as a weapon. Dumping more cap into 2026 could ensure they have more flexibility in 2027 as they try to retain their core players and sustain a winning window. Either way, four equal installments of $2.4 million against the cap from 2027 through 2030 are gone. They’ll instead pay the proverbial “tax man” all of that in 2026.
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