Nov 6, 2025; Denver, Colorado, USA; Denver Broncos place kicker Wil Lutz (3) gestures in the fourth quarter against the Las Vegas Raiders at Empower Field at Mile High. Isaiah J. Downing-Imagn Images

Details Emerge on Broncos' Wil Lutz Extension: Grading the Contract

Originally posted on Denver Broncos on SI | By Bob Morris | Last updated Nov 29, 2025 3:56 PM ET

The Denver Broncos have extended three players who were set to become unrestricted free agents after the 2025 season. One of those players is kicker Wil Lutz.

The veteran kicker, who was finishing a two-year contract he signed back in 2024, agreed to terms on a three-year extension. He is now signed with the Broncos through 2028.

Let's examine Lutz's contract and see how the Broncos structured the deal.

Contract Details

Summary: Three years, $16.1 million, $7.71 million fully guaranteed.

Contract Breakdown

2025: $5.2M signing bonus, fully guaranteed (his 2025 base salary was already fully guaranteed as a vested veteran)
2026: $793,335 option bonus, $1.3M base salary, both fully guaranteed.
2027: $2.28M option bonus, $1.345M base salary, of which $2.5M becomes fully guaranteed if on the roster on March 17, 2026.
2028: $3.77M option bonus, $1.39M base salary.

Void years in 2029 through 2033 for cap purposes.

Cap Charges

2025: $5.8M
2026: $2.5M *
2027: $3.4M *
2028: $4.2M *

* Assumes option bonus is exercised

Gut Reaction

The Broncos used option bonuses to reduce the cap charges on this contract. An option bonus, if exercised, is treated like a signing bonus and structured over multiple years of the contract. The void years are utilized for this purpose.

If an option bonus is not exercised, the money is treated as base salary unless the player is released. Lutz's option bonus for 2026 is fully guaranteed and is due March 17, so that will likely be exercised.

But in 2027 and 2028, the option bonus isn't due until Sept. 1. That means, if the Broncos keep Lutz, they can choose to keep the option as a base salary and take a larger cap charge for that season. The contract's structure allows the Broncos to determine whether they're comfortable with a larger cap charge or would prefer a smaller cap hit if more cap space is needed.

As far as other particulars go, Lutz has the sixth-highest average-per-year salary among NFL kickers, the ninth-highest fully guaranteed money, and the 10th-highest in total guarantees. In 2027, $2.5M of his salary is a practical guarantee because the Broncos are certain to have Lutz on the roster on March 17, 2026, barring something drastic.

The Broncos are compensating Lutz well, but didn't reset the market for the position. He was given a slight pay raise and will have a practical commitment to him for the next two seasons.

All things considered, the Broncos did well with the contract, in that they found a way to reward Lutz for his overall play without having to overpay him.