Under Sean Payton, the Denver Broncos have witnessed huge roundabouts, going from a 5-12 season in 2022 to an 8-9 season in Payton’s first year as a head coach. In 2026, the Broncos' financial turnaround has been dramatic, too. And Payton broke his silence.

In just two seasons, the Broncos have gone from carrying a major dead-money hit to ranking second-lowest in dead cap across the league. Payton highlighted the importance that comes with the situation.

“It feels good,” Payton told reporters on Thursday, June 4, giving a clear indication that he is not treating it as a minor detail. "It’s important. It’s hard to do that with dead money. So I don’t know that anyone can physically feel it or see it, but certainly it exists when it pertains to your budget.”

Denver created more salary cap flexibility by making Dre Greenlaw a post-June 1 cut. This resulted in $8.19 million in savings for 2026, along with a $2.17 million dead cap charge.

A healthy cap cushion helps the Broncos manage injuries, add depth when necessary, and navigate the demands of a long season. According to Denver Broncos on SI, the franchise is sitting on a comfortable $26.23 million in available salary-cap space.

They have already started to invest the money in contract extensions. As reported by Broncos Wire, the franchise has agreed to revise cornerback Pat Surtain's contract, adding $5 million to his 2026 salary. 

“It was definitely an adjustment," Payton said of Surtain's pay raise. "He’s obviously someone that we feel like is elite and at the top of his position. Part of that is the salary cap, and how that fluctuates and moves, especially in the last three years.”

The Broncos had around $25.65 million in available cap space before the adjustment for Surtain. And the team still has several extension-eligible players to consider.

Few Contract Extensions That Are Looming in the Corner After Denver’s Financial Flexibility

Wide receiver Marvin Mims is a two-time All-Pro and Pro Bowl return specialist. Yet he flew under the radar last season while setting a personal best with 1,510 all-purpose yards. His offensive role may not grow after the Broncos added Jaylen Waddle. 

But he remains one of the league’s premier returners and an explosive weapon when given chances. So, the Broncos are likely to dish out a contract extension.

After signing his one-year restricted free agent tender, cornerback Ja'Quan McMillian is set to earn $5.767 million in 2026 before becoming an unrestricted free agent in 2027. He is reportedly interested in a multi-year extension.

If it were 2024, Denver wouldn’t have had the flexibility to both reward Surtain and add a high-priced receiver like Jaylen Waddle. Despite those earlier limitations, the Broncos navigated Russell Wilson’s exit.

As Denver is yet to finalize further extensions, what are your thoughts on Payton and the Broncos coming up with a cap cushion? Share your thoughts.

Read more at Denver Broncos Community.

Written by

Soheli Tarafdar

Edited by

Soheli Tarafdar