Grading Broncos’ Massive $102M Extension for Zach Allen

The Denver Broncos had multiple key players entering the final year of their contracts going into training camp. The Broncos haven't wasted too much time getting extensions done, having agreed to new contracts with two of those players.

One of those players is defensive end Zach Allen, who originally signed a three-year, $45.75 million contract with the Broncos back in 2023. He has since become one of the top players not only on the Broncos' defense, but in the NFL overall, even if he hasn't received a lot of Pro Bowl or All-Pro accolades.

But the Broncos knew what they had in Allen, having signed him to a four-year, $102M extension during the weekend. He got $44.25M fully guaranteed and $69.5M in total guarantees.

Let's examine the contract and see how the Broncos did with this signing.

Contract Details

2025: $24M signing bonus, $2.49M base salary, $510K per-game roster bonus, fully guaranteed.

2026: $16.485M base salary, $765K per-game roster bonus, fully guaranteed.

2027: $22.35M base salary, $765K roster bonus, injury-only guaranteed. $15.75M of the base salary becomes fully guaranteed on March 16, 2026, and the remainder becomes fully guaranteed on March 15, 2027.

2028: $21.375M base salary, $765K per-game roster bonus, with $2.25M of the base salary becoming fully guaranteed on March 15, 2027.

2029: $24.48M base salary, $1.02M per-game roster bonus.

Cap Charges

• 2025: $14.345M
• 2026: $28.625M
• 2027: $30.74M
• 2028: $30.125M
• 2029: $30.3M

Gut Reaction

The Broncos certainly paid Allen well, giving him the third-highest APY salary among all interior defenders and the third-highest in total guarantees. In full guarantees, he ranks eighth among interior defenders, though his 2027 salary is practically guaranteed given the dates on which the money vests into a full guarantee.

It's worth noting the Broncos reduced Allen's cap charge by a little more than $5M with this extension. That extra cap space can prove useful for giving the Broncos more wiggle room as they finalize the roster, make any transactions during the regular season and with potential carryover for 2026.

Keep in mind that the Broncos restructured Allen's previous three-year deal last season, in which they used void years to spread out cap charges. That means some of the cap charges for the years 2026 through 2028 include that pro-rated money from those void years.

The Broncos, however, did not use void years in this extension. However, one can't rule out the possibility of adding void years if they opt to restructure his contract in 2026. Whether that does happen, though, depends on the Broncos' overall cap situation at that point and what others move they make.

The way the contract is structured, Allen will be with the Broncos through 2027 unless they trade him. They can get out of the deal in 2028 with only a small amount of money due if his play declines.

This was certainly a bold move by the Broncos, as they made Allen one of the highest-paid interior defenders in the NFL, even if he didn't re-set the market. But given his level of play the past two seasons, it's hard to argue he shouldn't have been rewarded.

Contract Grade: B+