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Once Denver seemed to decide that Chad Kelly had more upside as both a potential starter and a capable backup than Lynch, then it makes a lot of sense that they'd look for a cheaper, dependable-but-not-great option as QB3. That Lynch went unclaimed on waivers is a bit surprising for a guy that was a 1st round pick just a couple of years ago, but now that he's a free agent, teams can pay him league minimum as a backup and see if they can develop him. (Spoiler alert: they won't be able to develop him, because he is bad at playing quarterback.)
The upside of Hogan going to Denver is that Chad Kelly is unproven (he spent his whole rookie year last year on IR due to an ACL injury), so if Case Keenum goes down, it's possible Hogan might actually see some time. Even if he just gets spot snaps here and there, he'll further demonstrate his "solid NFL backup" capabilities, and continue to cash NFL checks. The downside of going to Denver is that he is by no means in their future plans. Keenum is their QB of the present, and they hope that he's the QB of at least the near future as well. Kelly is a guy that they'll develop as a potential starter. They will invest precious little time into developing Hogan when (1) Keenum is new to the offense and needs as many reps with the ones as possible and (2) any reps Keenum doesn't take with the ones will be given to Kelly so he can develop. But if Hogan can pick up the offense quickly and looks sharp in practice with the threes, then perhaps he could convince the coaching staff to keep him around, and perhaps be the one to spell Keenum instead of Kelly to burnish his resume.