How Much Money Does Denver Owe Russell Wilson?

The Denver Broncos owe Russell Wilson a hefty sum, even after cutting ties with him. The Broncos are on the hook for a staggering $85 million in dead money due to his guaranteed contract. This is spread out over the next few years, making it a significant financial burden for the franchise.

Understanding the Russell Wilson Debacle: A Deep Dive

The Russell Wilson trade to the Denver Broncos was, without a doubt, one of the most talked about – and ultimately disastrous – moves in recent NFL history. Hopes were sky-high. The Broncos, starved for a reliable quarterback since Peyton Manning’s retirement, believed they had found their savior. Instead, they got a quarterback whose performance plummeted, leading to a swift and expensive exit.

The initial trade itself was a blockbuster, sending multiple players and high draft picks to the Seattle Seahawks. Then came the extension: a massive five-year, $242.5 million contract that was supposed to solidify Wilson’s place as the Broncos’ franchise cornerstone. What followed was far from what anyone envisioned.

Wilson’s play was subpar. The Broncos struggled to win games. Coaches were fired. The relationship between Wilson and the organization deteriorated, culminating in his benching and eventual release. Now, the Broncos are left to pick up the pieces, financially and strategically. The dead money hit is a harsh reminder of the risk involved in high-stakes player acquisitions.

The Anatomy of Dead Money: How Did We Get Here?

Dead money represents the salary cap hit a team incurs for a player who is no longer on their roster. It stems from guaranteed money within a player’s contract. In Wilson’s case, a significant portion of his contract was guaranteed, meaning the Broncos were obligated to pay him regardless of whether he was playing for them.

When the Broncos released Wilson, the remaining guaranteed money accelerated onto their salary cap. They opted to designate Wilson as a post-June 1st cut. This allows the team to spread the dead money hit over two seasons rather than taking the entire hit in one year. This is a common practice for teams dealing with large dead money situations, offering some (albeit limited) financial flexibility.

The Breakdown: $85 Million of Pain

The $85 million isn’t paid out in a lump sum. It’s a charge against the Broncos’ salary cap over the next two seasons. The exact distribution depends on the specifics of the contract and the post-June 1st designation, but it generally looks like this:

• 2024: The Broncos will absorb a substantial portion of the dead money in the 2024 season.
• 2025: The remaining guaranteed money will then count against the 2025 salary cap.

This significant cap hit severely limits the Broncos’ ability to sign free agents and make other roster moves. It’s a long-term consequence of a short-sighted and ultimately unsuccessful investment.

The Broader Implications: A Lesson Learned?

The Russell Wilson situation serves as a cautionary tale for NFL teams. It highlights the importance of:

• Thorough Evaluation: Ensuring a player’s skill set and fit align with the team’s system and culture.
• Realistic Expectations: Avoiding overpaying for players based on past performance or reputation.
• Contractual Prudence: Structuring contracts in a way that minimizes risk in case of unforeseen circumstances.

The Broncos are now facing the difficult task of rebuilding while simultaneously managing a massive dead money burden. They’ll need to be creative and strategic in their player acquisitions and salary cap management to overcome this setback. It is also worth noting that now that Wilson has signed with the Pittsburgh Steelers for the veteran minimum, the Broncos will get a small, small amount of relief, though, for the total owed to Wilson.

Frequently Asked Questions (FAQs) About the Russell Wilson Situation

1. Can the Broncos get any of the $85 million back?

Yes, actually they can, although the amount is small. Because Wilson signed with the Pittsburgh Steelers for the veteran minimum, the Broncos will get some very minor relief from the salary cap. How much will depend on how much Wilson signed for in Pittsburgh, but it is likely to be minimal.

2. What is “dead money” in NFL contracts?

Dead money is the salary cap charge a team faces for a player who is no longer on their roster. This typically arises from guaranteed money in the player’s contract that the team is still obligated to pay, even after the player is cut, traded, or retires.

3. How does a “post-June 1st cut” impact the dead money?

A post-June 1st cut allows a team to spread the dead money charge over two salary cap years instead of taking the entire hit in one year. This provides some financial flexibility by delaying a portion of the cap burden.

4. Did the Broncos try to trade Russell Wilson instead of cutting him?

Reports indicate that the Broncos did explore trade options for Russell Wilson. However, his large contract and declining performance made it difficult to find a trade partner willing to take on his salary.

5. How does the $85 million in dead money affect the Broncos’ ability to sign free agents?

The $85 million dead money hit significantly restricts the Broncos’ ability to sign free agents. It reduces the amount of available cap space, limiting their options in the free agency market. They must be more selective and budget-conscious in their player acquisitions.

6. Could the Broncos have avoided this situation altogether?

Hindsight is 20/20, but many believe the Broncos could have avoided this situation by exercising more caution and diligence in evaluating Wilson before trading for him and offering him a massive contract extension. A more thorough assessment of his skill set and fit within the Broncos’ system might have revealed potential red flags.

7. What is the long-term impact of the Russell Wilson situation on the Broncos?

The long-term impact is considerable. The dead money will hamper the Broncos’ financial flexibility for the next two years. It will also likely impact their draft strategy, potentially forcing them to prioritize specific positions due to roster needs and limited cap space.

8. How does this compare to other large dead money situations in NFL history?

The Russell Wilson situation is one of the largest dead money hits in NFL history. It ranks among the top examples of costly player acquisitions gone wrong. The impact on the Broncos’ salary cap is substantial and will require careful management to navigate.

9. Will Russell Wilson’s performance in Denver affect his future NFL opportunities?

His performance in Denver undoubtedly impacts his future NFL prospects. Teams will be hesitant to invest heavily in him, and he may have to accept a smaller role and a lower salary to continue his career. However, he is a veteran with a Super Bowl ring and is now with the Pittsburgh Steelers so he will get another opportunity to prove himself.

10. Can the Broncos renegotiate the dead money with Russell Wilson?

Generally speaking, once a player is released and the dead money is established, it is very difficult to renegotiate those terms. The Broncos are essentially committed to paying the guaranteed money regardless.

11. What other options did the Broncos have besides cutting Russell Wilson?

The Broncos’ options were limited. They could have kept him on the roster as a backup, but that would have been a costly and potentially disruptive decision. They could have tried to trade him, but finding a trade partner was unlikely given his contract and performance. Cutting him was the most practical, albeit painful, option.

12. How will the Broncos move forward after the Russell Wilson debacle?

The Broncos will need to focus on rebuilding through the draft, developing young players, and making smart, cost-effective free agent signings. They’ll also need to find a long-term solution at quarterback and establish a stable coaching staff and organizational culture. It’s a challenging road ahead, but with sound management and strategic decision-making, they can eventually overcome this setback.