Broncos Are Actually in Line For a Compensatory Draft Pick

It's been a while since the Denver Broncos have qualified for a compensatory draft pick.

Nick Kendell | Mar 24, 2025

Jan 5, 2025; Denver, Colorado, USA; Denver Broncos head coach Sean Payton during the first quarter against the Kansas City Chiefs at Empower Field at Mile High. / Ron Chenoy-Imagn Images

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Denver Broncos

The Denver Broncos have had a busy free agency period.

After re-signing defensive tackle D.J. Jones, quarterback Jarrett Stidham, and linebacker Justin Strnad, as well as signing free-agent safety Talanoa Hufanga, linebacker Dre Greenlaw, tight end Evan Engram, and wideout Trent Sherfield, the Broncos’ overall roster appears to be fairly stable and set prior to the NFL sraft.

The Broncos could still sign some free agents to add competition at running back, tight end, and wide receiver and bolster depth along the interior defensive line and secondary, but will they do anything prior to the draft? And if not, what could the hold-up be for the Broncos?

For the first time in many years, the Broncos are projected to be in line for a 2026 compensatory selection, according to Over The Cap. The potential compensatory picks that might have been returned to Denver for linebacker Cody Barton (Tennessee) and quarterback Zach Wilson (Miami) were canceled out by the Hufanga and Greenlaw signings, but the Broncos currently are in place to receive a seventh-round selection for losing punter Riley Dixon to Tampa Bay.

As things currently stand, the #Broncos are in line for the first time in a while to receive a compensatory pick in 2026

We will see if this holds true!

Thanks to @nickkorte and his comp pick work over at OTC! pic.twitter.com/m2oWUKVCMA
— Nick Kendell 🏔 (@NickKendellMHH) March 24, 2025

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Due to how compensatory picks are awarded, teams that sign players who were cut, as opposed to being signed after their contract expires, are not a part of the formula. If they were, the Broncos wouldn't be in line to receive any 2026 compensatory picks with the Engram signing. With Engram being cut by Jacksonville, though, he does not count as part of the formula for how compensatory picks are awarded.

While the actual formula of how teams are awarded compensatory selections is somewhat secretive, Over The Cap's Nick Korte has done an impeccable job over the last few seasons correctly predicting which teams will receive them. Denver could still be pushed out of qualifying for a seventh-rounder by teams signing players to larger average-per-year deals, such as Russell Wilson and Amari Cooper.

The Broncos could sign players such as running back J.K. Dobbins, defensive lineman Calais Campbell, or a veteran receiver such as Stefon Diggs or Keenan Allen, but by doing so, the Broncos would likely forfeit the seventh-round compensatory pick that might be coming their way in 2026.

As of April 28 (the Monday following the draft), the Broncos and the rest of the league will be able to sign free agents that will not count toward the compensatory pick formula. Further, as long as Denver does not sign any free agents to contracts that earn over $3.25 million on average per year, then they might have some extra draft capital heading their way in 2026, even if it is just a compensatory seventh-round pick in the end.

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