How releasing Joe Flacco impacts the Broncos' salary cap

DENVER — A forgettable era has come to an end in Denver.

Joe Flacco — who just a year ago was touted by John Elway as a Super Bowl MVP who was entering his “prime” — was informed by the team on Thursday that he will be released with a failed physical designation.

The Flacco era came to an end after one season in which the veteran posted underwhelming numbers: six touchdowns, five interceptions and 1,822 yards. Before suffering a season-ending neck injury in Week 8, Flacco guided Denver to an equally underwhelming 2-6 record.

When the Broncos acquired Flacco via a trade with the Ravens last offseason, Flacco had zero guaranteed dollars and dead cap on the three remaining years of his contract. It was as team-friendly as a contract can get — outside of an $18.5 million payday, that is.

However, the Broncos restructured Flacco’s contract just before the start of the season. This move opened up $13.6 million in cap space for 2019 and moved that to the 2020 cap.

Because of that, after releasing him, Flacco will now carry $13.6 million in dead money in 2020, but won’t have a single dollar paid to him by the Broncos.

Since Elway didn’t spend the $13.6 million that he opened up by restructuring Flacco’s contract, that entire savings rolled over to Denver’s 2020 cap. Essentially, Flacco’s $13.6 million dead cap hit in 2020 is a wash, since the rollover from the 2019 savings completely covers it.

By releasing him on Thursday, the Broncos opened up $10.05 million in cap space that the team can use immediately.

Denver was ineligible to use a post-June 1 designation on Flacco since they waived him with the failed-physical designation. Using the post-June 1 designation would have allowed the Broncos to spread his dead cap hit over multiple years. Since that wasn’t an option, however, all $13.6 million in dead money will apply to the 2020 cap.

As of Thursday afternoon, after moving on from Flacco, the Broncos have an estimated $20 million in available cap space. However, the team will need to save roughly $10 million to sign its draft class. That leaves Elway with approximately $10 million to continue to spend to build his roster.