When Russell Wilson joined Sean Payton’s team in 2022, many thought it was a clear sign of a potential long-term partnership, with the former QB describing his relationship with the Denver Broncos as “a marriage.” However, those expectations were soon dashed when the team posted an 11-19 record over two campaigns during his tenure as a starting quarterback. The inconsistency eventually led to a divorce between the two in 2024, following a massive salary cap situation. And now, Denver is finally closing one of the most expensive chapters in franchise history. 

When the Broncos parted ways with Wilson two years ago, they faced the largest dead money hit in the league’s history. They divided the $85 million cap across two seasons, with $53 million falling into the 2024 cap and the remaining $32 million counting against the next year’s cap. In 2026, the team finally takes the New York Giants QB off the payroll.

A Super Bowl champion with Seattle, Wilson arrived in Denver with enormous expectations. The Broncos handed him a five-year, $242.6 million extension that included roughly $161 million in guarantees.

“My goal is to be able to finish my career here,” Wilson had once said. However, the team couldn’t make the postseason in Wilson’s stretch.

And the QB’s inconsistency prompted Payton to bench him for the last two games of the 2023 season. In March, the team eventually announced his departure. Wilson went on to have a one-year stint with the Pittsburgh Steelers before signing a one-year deal with the Giants.

By now, Denver has already paid Wilson the final $37.79 million it owed him last year, representing its share of the $39 million guaranteed for 2024. Pittsburgh covered the remaining $1.21 million during Wilson’s lone season with the Steelers. From an accounting standpoint, though, the Broncos are still carrying the remaining cap hit this year. In total, Denver paid just under $124 million in guaranteed money tied to Wilson’s five-year extension, money that had to be accounted for eventually, regardless of when it was paid.

However, the Broncos are projected to enter the 2026 season with a cap space of $45.45 million. It will play a major role in developing their roster. Also, Denver’s fresh moment comes just days after quarterback Bo Nix received a major contract update.

Sean Payton’s quarterback gets a big update on his rookie deal

Quarterback Bo Nix’s four-year, $18.61 million rookie deal has benefited the Broncos in a major way. The contract has given the front office valuable salary cap breathing room to bring in talented players around him. With Denver now entering the NFL Conference Championship round, the coach had earlier expected his QB to outlast his counterparts. 

Well, that’s out of the picture, as an ankle injury keeps Nix out of the tournament. But before these developments took place, wide receiver Marvin Mims Jr. shared a hot take on Denver’s cap situation going forward. 

“Bo’s going to get a big contract, and it’s going to clamp us in the salary cap and all that stuff,” he said via the Denver Gazette reporter Chris Tomasson. “At the end of the day, we just got to keep going out here and playing ball and just keep progressing as a team.” 

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Currently, Nix’s contract carries a salary cap hit of just over $4.2 million for the 2025 season. It’s a steal deal since the amount comprises only 1.5 percent of the team’s total cap. These figures are expected to increase marginally in the coming years, reaching slightly over $5 million in 2026 and approximately $6 million in 2027. 

Until then, the Broncos could make the most of the flexibility by making aggressive deals elsewhere. But the scenario will change when the Broncos move towards a long-term extension for Nix. The new contract can push his annual value to nearly $54 million. When that happens, Sean Payton’s team will lose the financial advantage.