FOX Sports’ Tony Pauline reports the Broncos could lose $2 million on the 2016 season, but they have the luxury of being able to make up some of that lost revenue with the addition of the $1 million buyout.
That money is tied up in the two-year contract the Broncos signed to retain Trevor Siemian, who was due to earn $2.1 million this season.
In the same deal, the Broncos were also set to be paid $1.9 million in 2016.
However, the buyout was scheduled to kick in before the 2016 NFL season began.
In 2016, the team paid $2,569,250 to retain Siemian.
However the Broncos also signed a $2-million player option for 2017.
In 2017, the same team paid Siemian $1,859,500.
The Broncos are expected to retain that option for another $2 billion.
The buyout would also add up to $3.5 million per season, according to the Denver Post.
That is more than the Broncos will be able to spend on other free agents in the coming years.
If the Broncos don’t earn the playoffs this season, they will forfeit that $2m on the cap for the upcoming years.
They are projected to be worth around $2-$2.5 billion in cap space.
If they make the postseason, they would only be able play the cap-strapped Broncos for the remainder of the current contract.
In 2019, the cap is expected to be about $90 million.
The team could be looking at a $1-billion hole.
That number includes $1 billion for players that are no longer on the roster and another $400 million for cap room, but it does not include any money for any other future cap issues.
The biggest question mark heading into the offseason is how much the Broncos are willing to spend.
They could be willing to make some big moves in free agency this year, but a lot of that money could be locked up for the next few years.
This is the year that the Broncos have to make a big move if they want to make any kind of splash this off-season.