The Denver Broncos had to absorb a record amount of dead cap after releasing Russell Wilson. Two years later, the Miami Dolphins are following suit—but what’s behind this new tactic?

The Broncos parted ways with quarterback Russell Wilson after two disappointing years—and in doing so, took on a record amount of dead cap. Two years later, they’re one of the top teams in the NFL.

Denver thus appears to have set a model that some franchises are already using as a guide for their rebuilds.

Will there be more and more teams in the future that part ways with failed star players despite high dead-money sums—and how does such a rebuild work?

After Russell Wilson’s Release—Denver Broncos Pull Off a Turnaround

After the Broncos won the Super Bowl in 2015, a long dry spell followed. For eight years, the franchise failed to make the playoffs.

In 2022, Denver secured the services of Russell Wilson in a blockbuster trade; at that point, he had been playing at the absolute top level in Seattle for ten years.

But the superstar’s impact fell short of expectations, and even with him on the roster, the franchise was unable to turn things around.

So they decided on a spectacular contract termination for the quarterback. As a result, the Broncos had to absorb $85 million in dead money—twice the record amount at the time.

But it was precisely this decision that paid off in full: Denver found its franchise quarterback in the draft with Bo Nix, and since then, the Broncos have made the playoffs both years.

Last season, had the 25-year-old not been injured in the AFC Championship Game against the New England Patriots, the team would likely have been the favorite and would have had a good chance of reaching the Super Bowl.

For the upcoming season, the franchise has the second-lowest dead cap in the NFL at around $3.4 million; only the reigning Super Bowl champion from Seattle has a lower figure.

An AFC personnel executive told the U.S. television network “ESPN”: “That amount was more than double what any other team had ever spent on any other player, and they made it to the playoffs.”

He continued: “That won’t work for everyone, and no one wants to have to make decisions like that about ‘dead money,’ but it worked—and everything that works in this league gets scrutinized.”

Broncos benefit from a wealthy ownership group

But the quarterback position isn’t the only important one in a rebuild like this. Over the past two seasons, Denver has also overhauled its defense, turning it into one of the strongest in the NFL.

Most recently, the team granted All-Pro cornerback Pat Surtain II a $5 million pay raise, with the prospect of another $5 million raise next season.

In addition, they have locked in a core of nearly two dozen players with long-term contract extensions, paying out more than $325 million in guaranteed money.

However, it’s important to keep in mind that the Broncos are owned by the Walton-Penner Family Ownership Group, which has ample cash and equity—both within and outside the franchise—that many other teams simply don’t have.

That said, Denver has established a model that several franchises are already using as a blueprint for their rebuilds.

Miami Dolphins Follow the Denver Broncos’ Example

The Miami Dolphins appear to be pursuing a similar strategy at the moment. After another disappointing season with Tua Tagovailoa, the team initially benched their former star prospect and then released him during the offseason—in doing so, Miami took on a new record amount of dead money: approximately $99 million.

And that’s not all: Tyreek Hill ($28.25 million in dead money) and Bradley Chubb ($23.86 million in dead money) also had to pack their bags. In addition, Miami traded Jaylen Waddle to the Broncos, adding another $26.3 million to the total.

As a result, the franchise will pay more money next season to players who no longer play for Miami ($179.2 million) than to its own players ($116.3 million).

In an informal survey conducted by “ESPN” over the past few weeks among eleven coaches and front-office executives in the league, many respondents felt that Miami’s offseason strategy was an evolution of what the Broncos did two years ago.

“Teams had problems with ‘dead money,’ cut players to be able to make moves in the draft or on the free-agent market, and had to let go of players with high-value contracts,” said one NFC general manager, for example.

He continued: “But I think they’ve somehow given everyone the sense that, if you really have to, you can rip open the zipper and fight your way through—and that it doesn’t always have to be such a long road back.”