Broncos must pay a historic amount of Dead Money under NFL’s CBA.

On Monday, March 4, 2024, the Denver Broncos ended a tumultuous two-year relationship with their star quarterback, Russel Wilson. After many months of rumors and controversy, Wilson was cut from the team. Wilson’s release comes just two years after a blockbuster trade that sent Wilson along with a fourth-rounder from the Seattle Seahawks in exchange “for three players (quarterback Drew Lock, tight end Noah Fant, and defensive tackle Shelby Harris), two first-round picks, two second-round picks, and a fifth-round pick.” ¹

Soon after Wilson was traded to the Broncos, he signed a record deal for five years and $242.6 million.² While a bit complicated, an NFL contract differs from a typical contract in other professional sports, as the total number of dollars in an NFL contract is not guaranteed. ³ Usually, the most important number is the total amount of guaranteed money a player receives due to his contract; thus, when an NFL player signs for $242 million like Wilson, it is doubtful a player will ever see all of that money. For example, in baseball, Shohei Otani signed a record 10-year $700 million contract this offseason, and due to the MLB’s CBA, Otani’s contract is fully guaranteed, and he will receive the total amount of money. ⁴

Despite not being guaranteed the total amount of their contracts, when NFL players employed with their respective teams reach a specific league date, their contract turns into guaranteed dollars.⁵ Callie Decort illustrates this perfectly in the same article: “It is also important to note that there can be money that becomes guaranteed (vests to a full guarantee) at a later date, but the team can cut the player before the trigger date occurs and the player would not get that guaranteed money.”⁶ 

In the case of Russel Wilson, the Denver Broncos found themselves in a financial bind. They waited until the new league year kicked in under the NFL CBA, and now owe Wilson a staggering $85 Million.⁷ This amount is astonishing even for the ever-profitable business known as the NFL. Wilson’s 2024 guaranteed payment is part of this large payout. The Broncos are paying their former quarterback this large amount of money not to play for their team over the next two years, which is more than the next two highest dead cap hits in NFL history combined.⁸ As mentioned above, Wilson’s money for this year is guaranteed; thus, his new potential team can pay him the veteran minimum of $915,000 under his contract and the NFL’s CBA.⁹ It’s a potentially unbelievable loophole where a team can get a player of Wilson’s pedigree and caliber for the bare minimum while another team foots the bill.

While some say this scenario offers the players a lot of power to earn a large sum of money for doing nothing, that is not necessarily the case. Pro football talk: “The NFL’s current collective bargaining agreement offers teams so much leverage and power in terms of contract protection for the teams. Including fifth-year options to be guaranteed in the proposed CBA, which are no longer tied to a draft slot.”¹⁰  While players get some rights, the teams still have all the leverage.

1. Denver Broncos to release Russell Wilson two years after blockbuster trade – NBC Boston ↩︎
2. Russell Wilson Cut by the Denver Broncos, Says He’s ‘Excited for What’s Next’ (people.com) ↩︎
3. How Does Guaranteed Money Work In The NFL? (sportskeeda.com) ↩︎
4. Complete coverage: Shohei Ohtani signs record deal with Dodgers – Los Angeles Times (latimes.com) ↩︎
5. NFL Contracts: Guaranteed Money Structure | The 33rd Team ↩︎
6. Id. ↩︎
7. Broncos grant Russell Wilson one major concession in $85M divorce (nypost.com) ↩︎
8. Broncos to release Russell Wilson, take $85M dead money hit – ESPN ↩︎
9. Should the Giants try to close the deal with Russell Wilson? (sny. tv)
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10.  Fifth-year options to be guaranteed in proposed CBA, no longer tied to draft slot – NBC Sports
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