Texans restructure WR Stefon Diggs contract

Stefon Diggs will be a member of the Houston Texans for the 2024 season.

After that, everything becomes a mystery.

According to ESPN’s Adam Schefter, as part of the blockbuster deal, the Texans have wiped out the final three years of his contract initially given by the Buffalo Bills, giving him the ability to become a free agent after this season.

Houston also will add $3.5 million to Diggs’ current contract, raising his annual salary to $22.52 million in guaranteed money in 2024.

Added incentive for Stefon Diggs: As part of the Buffalo-Houston trade, the Texans wiped out the final three years on Diggs’ contract, giving him the ability to become a free agent after this season, league sources tell ESPN. The Texans also took the $3.5 million guaranteed to… pic.twitter.com/3CdRZY0LhK

— Adam Schefter (@AdamSchefter) April 4, 2024

What exactly does this mean? In layman’s terms, Diggs will play on a one-year, prove-it deal to stick around with the Texans or better his annual salary on the market next offseason. He’ll have the chance to cash in with a promising campaign as the new No. 1 target for C.J. Stroud while helping the Texans secure a spot in the AFC postseason.

For Houston, it’s an “all-in” move for 2024. The Texans have been building around their rookie quarterback to up their chances of going from division-winning contender to postseason threat with a move like re-signing Dalton Schultz and trading for Joe Mixon.

It’s a win-win for both sides on paper, too. Diggs, who will turn 31 in November, can prove he’s still in the midst of his prime and that the decline hasn’t started yet.

For Houston, it’ll be getting a hungry receiver looking to continue to his 1,000-yard campaign streak with a new franchise. Diggs totaled four consecutive 1,100-yard seasons with the Bills and two back-to-back 1,000-yard seasons with the Minnesota Vikings before he was traded in the 2020 offseason.

If Diggs proves to be a premier receiver, the two sides could come to terms on a new long-term deal prior to the start of free agency. If he underwhelms, the Texans could pivot more so to a long-term lucrative extension for breakout receiver Nico Collins.

The lone downside? Compensation. The Texans won’t be able to pick up a compensatory pick should Diggs walk next offseason given that they voided the final three years of his four-year, $104 million extension signed back in 2022 with Buffalo.

By shortening the contract he wont be comp pick eligible

— Jason_OTC (@Jason_OTC) April 4, 2024

The Texans now feature one of the league’s top offensive units headlined by the Offensive Rookie of the Year in Stroud. Diggs joins a receiver room that finished seventh in passing last season behind dominant campaigns from Collins and rookie Tank Dell.