Apart from the year following the COVID-19 pandemic and a temporary dip after the introduction of the 2011 collective bargaining agreement between the NFL and the NFL Players Association, the salary cap has steadily increased since its inception in 1994.
However, this year marks a significant escalation.
The NFL revealed a historic $255.4 million salary cap for the 2024 season—an augmentation of $30.6 million compared to the previous year. This figure surpasses the projected cap by OvertheCap.com by $13.4 million.
The increase from one year to the next is the largest in NFL history, surpassing the $25.7 million hike from 2021 to 2022. This year’s percentage jump of 13.6 percent ranks as the fourth-highest in NFL history, trailing only the increases seen in 1998 (26.4 percent), 2006 (19.3 percent), and 2022 (14.1 percent).
Regarding its impact on the Broncos, they still find themselves over the salary cap. According to OvertheCap.com, their top-51 cap figure stands at $257,897,595, exceeding the limit. However, this increase provides the Broncos with some additional flexibility as they navigate roster adjustments, especially considering the potential dead money hit approaching $50 million if they decide to part ways with Russell Wilson in the coming weeks.
So, in that regard, it’s a positive development for the Broncos.
However, a league-record surge in the salary cap typically leads to increased prices on the open market. This inflationary trend has a ripple effect that could resonate for years to come. One significant aspect for the Broncos to consider is the impending contract negotiations, particularly that of Pat Surtain II, who enters the final year of his rookie deal this season.
Denver is likely to opt for exercising the fifth-year option on Surtain, effectively locking in his cost for 2025, unless a trade occurs within the next two months. However, beyond that, the price tag is expected to rise. This upward trend in costs extends to any other high-value free agents as well.
While having more cap space is beneficial, it’s important to note that it also means increased flexibility for all teams in the league. Moreover, it contributes to the escalation in quarterback salaries. Consequently, there may be added motivation for teams to focus on the draft to secure five years of cost control at the quarterback position, which is both the most expensive and pivotal position in football.
