NFL teams will have nearly $16 million less to work with next season. 

The league announced the 2021 salary cap Wednesday, setting it at $182.5 million — a big drop from last year’s $198.2 million. The drop is a result of the pandemic, which forced the league to play most of the season without ticket sales or with limited fans in the stands, which is a large piece of the league’s annual revenue. 

The Broncos seem to be in a good position heading into free agency, which starts March 17. According to Over The Cap, the Broncos have the seventh-most cap space in the NFL at $32,350,285. That number includes both safety Justin Simmons’ franchise tag at $13.73 million and outside linebacker Von Miller’s contract at $22.125 million.

Both of those numbers are likely to change before the season, with Simmons trying to land a long-term contract in the $14 million-$15 million range. Meanwhile, Miller’s may totally disappear if the Broncos don’t pick up his club option and make him a free agent. Miller’s price tag could drop in cost if the two sides agree to restructure his contract to something cheaper — maybe close to J.J. Watt’s $15 million per year deal.

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Either way, the Broncos will have plenty of room to make a few offseason moves. General Manager George Paton said March 4 “you never want to go crazy in free agency.”

“You don’t want to build your team in free agency,” Paton said. “You want to fill selective needs going into the draft. That has been my philosophy. You don’t always want to be the first one out of the gate and throw all your money, but there is something you need, you’ll take a shot. I just think you have to be selective and you have to look at every situation. If you can fill a need and help your team, you’re going to go for it.”

Positions the Broncos will certainly look at pursuing this offseason include linebacker, cornerback and quarterback. They intend to bring in competition for starting quarterback Drew Lock, according to a report from NFL Network. There’s also the need to address both contracts for safety Kareem Jackson and defensive tackle Shelby Harris, and if both are kept, could take up a good chunk of that $32,350,285. The tenders for wide receiver Tim Patrick, running back Phillip Lindsay and linebacker Alexander Johnson could also contribute to the Broncos’ cap space, if each is retained. 

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