The Broncos have flexibility in dividing Russell Wilson’s cap charge thanks to the option bonus.
Russell Wilson’s cap hits will cost the Broncos $85 million over the course of the next two seasons. It will be interesting to observe how they divide the costs between 2024 and 2025.
Importantly, there’s a $22 million option bonus that expires next week. Payment is assured. The Broncos have the option to exercise it and let it become base salary, or they can prorate it over the following five years.
The cap costs, if prorated, will come to $35.4 million this year and $49.6 million the next year. They will receive $53 million this year and $32 million in 2025 if it isn’t.
The Broncos must choose between taking a bigger loss this year or the following year since teams are able to carry over cap space from one season to the next. We are informed that they have not made a decision yet. It will be decided in accordance with their overarching intentions for roster building, cap management, and spending.
In either case, the Broncos will face a tremendous, enormous cap consequence for the ensuing two years. That is the cost they will incur in order to prevent having March 17, 2024, when an additional $37 million for 2025 become fully guaranteed.
Be the first to comment