In terms of salary cap hits in Year 1, the Denver Broncos’ biggest signing of free agency was not guard Ben Powers ($5.25 million) or right tackle Mike McGlinchey ($6 million), but defensive lineman Zach Allen ($7.25 million).
Allen agreed to terms on a three-year, $45.75 million contract with the Broncos on Monday. This year, Allen will have a low base salary of just $2.25 million, similar to Powers and McGlinchey. His $15 million signing bonus will be prorated as $5 million cap hits over the next three seasons.
That will give Allen a total 2023 salary cap hit of $7.25 million.
Next year, Allen’s base salary will jump up to $15.25 million. That combined with the $5 million prorated signing bonus will give him a total 2024 salary cap hit of $20.25 million.
After that, Denver will have the option to pick up or opt out of the final year of Allen’s contract before the 2025 season. If the Broncos opt out, the team will take a $5 million “dead money” cap hit and not owe the remaining $13.25 million in 2025.
If Denver picks up the final year of Allen’s contract, he will have a base salary of $12.74 million, a $510,000 roster bonus and a total 2025 salary cap hit of $18.25 million.
The three-year contract is relatively team-friendly because it gives the Broncos a reasonable cap hit in 2023 and the club can get out of the deal down the road if things don’t work out. The 25-year-old defensive lineman will aim to prove he was well worth the money.
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