“Denver Broncos Release Russell Wilson: Unraveling the Financial Impact and Shifting Dynamics”
The Denver Broncos made a significant announcement on Monday, informing quarterback Russell Wilson that he would be released after the commencement of the new league year on March 13. This decision comes on the heels of Wilson’s underwhelming performance during his tenure with the Broncos, marked by a disappointing 11-19 record as a starter and the team’s failure to make the playoffs in both the 2022 and 2023 seasons.
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Denver Broncos
Initially signing an extravagant five-year deal worth $242.6 million with the Broncos in 2022, Wilson’s departure is not only a strategic football decision but also a financial one. While his 2024 salary of $39 million is already guaranteed, the Broncos’ release of Wilson allows them to circumvent the full guarantee of his $37 million 2025 salary, slated to be effective on March 17. The financial intricacies of Wilson’s contract dictate that the amount he signs for with a new team will be subtracted from the $39 million, which the Broncos will then be obligated to pay.
However, the release of Wilson also comes with a substantial financial consequence for the Broncos. The move incurs a dead cap hit of $85 million, setting a new record as the largest in NFL history, surpassing the previous mark of $40.53 million. If the release is categorized as a post-June 1 cut, the $85 million will be distributed as $35.4 million in 2024 and $49.6 million in 2025, with Wilson’s contract finally being entirely off the books in 2026.
Denver’s financial situation before the release was already strained, with the team being $16.354 million over the cap in 2024, according to OverTheCap.com. This figure remains unchanged, even with the quarterback no longer on the roster, if the release is designated as a post-June 1 cut. Looking ahead to 2025, the Broncos are projected to have just over $110.525 million in cap space, compared to $104.725 million before Wilson’s release. Opting for a pre-new cap year transaction would leave the team approximately $66 million over the 2024 cap while elevating the 2025 cap space to $160.2 million.
With Wilson’s departure, the Broncos are now expected to explore more cost-effective options at the quarterback position for the commencement of the 2025 season. Meanwhile, the nine-time Pro Bowl quarterback embarks on the journey to find a new home in free agency, marking a significant shift in both the Broncos’ roster dynamics and Wilson’s professional trajectory.
