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How can the Denver Broncos spend SO much?

I am a die hard 49ers fan living in Denver. I am NOT in any way a Raiders fan, so my question does not come from there.

Every year since Elway took over the Bronco's front office, I see the Broncos spending like crazy in Free Agency. 2 years ago it was Manning, last year it was DRC, this year they have already signed TJ Ward, and Talib to massive contracts. They also are reportedly close to signing DeMarcus Ware to what I can only assume will be a huge contract. They have released DRC and Champ Bailey this offseason. So are they setting themselves up to be in Cap Hell in the near future?

How are they able to sign all of these high marquee players to massive contracts and still have cap space?

Is Elway finding a way to cheat around the salary cap?

I'd love some perspective and answers from someone who has some knowledge of the NFL salary cap situation. Problem with the news markets here is they never report anything even slightly critical about the home teams and even the national media seems to ignore this issue with stars in their eyes over Manning and co, therefore it is almost impossible to get any fair perspective on this issue.

What do you all think?
Leverage the future for the present, since their window is closing
Backloading the heck out of contracts, also not re-signing a lot of their own free agents, they are basically going for broke, trying to win it all this season, if they can't do it then, it won't ever happen as in 2014 they have a crapload of pricy free agents to re-sign and Manning will be a year older.
what about New Orleans? They just cut half their team to franchise tag Jimmy Graham, but somehow they can afford Jairus Byrd?
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@Jay_AB81 could find the answers you are looking for.
Just think of it like this,

John Elway is taking out money on loans, and everntually he will have to pay them back and the Broncos will pay.
But in the mean time, they can hopefully enjoy the nice stuff they got on credit (new players)
And potentially use those things for their ultimate enjoyment (the super bowl)
Originally posted by MikeRumph:
what about New Orleans? They just cut half their team to franchise tag Jimmy Graham, but somehow they can afford Jairus Byrd?

They're going to be right up against the cap, I'm sure the deal was setup to deliver a low cap number in 2014. Basically these teams have aging quarterbacks and are going #YOLO mode to try and win a Superbowl before its too late. When everything comes crashing down later, they'll deal with cap hell at that time.
People talk about the great job John Elway is doing as GM, but if they don't win the SB this year, they will moan about how terrible he was for years to come in Denver!
What everyone else said... Essentially all these big-money contracts are backloaded... meaning.. They're manageable in the first couple years, but then become enormous amounts in the last couple years.

The Broncos are indeed going for broke. When Peyton Manning retires, that team will have to rebuild, and will have huge contracts on older players. Honestly, it's just an aggressive play. A high chance for a Super Bowl win, and then maybe 2-3 years of losing seasons? Probably not the worst.

But models like the Patriots or the Ravens, and we're developing into that ourselves, where we set ourselves up for a good chance to contend every season, but rarely have a down year... I think that's just better. Could we have loaded the deck in 2012? Possibly, and that probably could've given us a win over the Ravens in the Super Bowl... but ultimately, we would have to make some very hard decisions the next couple years. Even now, we're probably gonna lose guys like Iupati or possibly even Crabtree in the next few years. Can you imagine how badly we would have to gut our roster if we have a monumental free agency signing?
Not a bad strategy IMO. Much better than always being above-average, like the Bears or Dolphins.

But you need an owner willing to swallow the signing bonus penalties. Because each season you have to release players to make up for the previous seasons cuts (cap penalties). As long as guys are being paid their enormous signing bonuses, they'll tag along. Eventually the Broncos will hit rock bottom (Release everyone) and suck for 2 seasons (Released year + Following Cap penalty year). What's the damage? A Top NFL draft pick.

So not a bad strategy, but you need that wealthy owner. Plus it's assumed you probably ran your cupboard dry of young talent. So add an extra year of sucking. But 2-straight NFL drafts of picking high and you should be back in business if you have a good front office: again an owner willing to pay for one.

This formula works bests if you have a stud Quarterback because once you hit rock bottom, you can just set your focus on getting a new Top Draft pick QB and fans are willing to sit through that
[ Edited by joshuatree on Mar 11, 2014 at 11:22 PM ]
Not sure why players wanna play with Peyton.... dude has no clutch in him....
Originally posted by Stevec9932:
Not sure why players wanna play with Peyton.... dude has no clutch in him....

He's played in 3 Super Bowls. He needs a Terrell Davis
The thing that gets me is New Orleans will have gutted their roster in order to add a free safety who has issues with staying healthy. Do they really believe Byrd is the difference maker needed to beat Seattle? I understand going YOLO with the Drew Brees window closing, but now their o-line will suffer even more and their defense will have more holes to fill than Lisa Ann.
They don't seem to have a salary cap. They sign guys left and right to mega deals. I don't get it.
Originally posted by MikeRumph:
The thing that gets me is New Orleans will have gutted their roster in order to add a free safety who has issues with staying healthy. Do they really believe Byrd is the difference maker needed to beat Seattle? I understand going YOLO with the Drew Brees window closing, but now their o-line will suffer even more and their defense will have more holes to fill than Lisa Ann.

They already made their decision by letting good players go, to keep Graham who is injury prone himself. I think in the NFL you have to roll the dice and keep a few high end talents in the hope you strike it big in the NFL Draft (cheap talent). Then you have a serious chance of knocking off a Top team in a 1 game situation. By letting go of high end talent in exchange for a bunch of good players, you probably won't have the soldiers to defeat a Seahawks. Then again, it's a role of the dice because if the high end talent gets injured, you won't even make the playoffs. Your giving up depth in exchange for a few Top tier guys. Graham could hypothetically go off 1 Sunday in the playoffs.
[ Edited by joshuatree on Mar 11, 2014 at 11:31 PM ]