Texans reportedly removing final three seasons from Stefon Diggs’ contract

Teams do not exactly make a habit of ceding contractual control, so nixing three years of a high-profile player’s contract represents an unusual development. 

The Texans will certainly ensure Diggs is motivated to succeed in 2024, as a fourth contract would stand to await him next year. But they now run the risk of losing the six-time 1,000-yard receiver after one season.

Houston does, however, hold exclusive negotiating rights with Diggs until March 2025. The parties could work out another deal. Unless something is already in place, the team has introduced an unnecessary risk into this equation.

The Bears did not adjust Keenan Allen‘s contract upon trading for the longtime Chargers WR, who drew interest from the Texans. While teams have made trade-and-extend moves for wideouts in the recent past — Tyreek Hill, A.J. Brown and Davante Adams each signed new deals upon being moved in 2022 — those players all had one season left on their previous contracts or, in Adams’ case, were franchise-tagged. 

Diggs was tied to a four-year, $96MM deal that featured four remaining years, separating this decision from those early-2020s calls.

When the Bills acquired Diggs from the Vikings in 2020, he remained on his Minnesota contract — a $14.4M-per-year deal that ran through the 2024 season — over his first two Buffalo seasons. The Bills and Diggs huddled up on the $24M-per-year deal in 2022, and the extension years were just set to begin. 

Diggs, 30, now has an unexpected opportunity to become a first-time free agent next year.

At the time of the trade Wednesday morning, it appears the Texans would have Diggs’ $24M-AAV contract aligned with C.J. Stroud’s remaining rookie-deal seasons. Stroud must be kept on a rookie contract through at least 2025. 

The Texans had the ability to easily escape from Diggs’ deal after the 2024 season. While removing these years could reignite Diggs — who offered a low-wattage conclusion to his 2023 season — a rebound season would also stand to up his value ahead of free agency. 

That would work against Houston, even if Stroud presents a nice drawing card for the nine-year veteran.

As it stands, the Texans certainly appear confident they will be able to retain Diggs beyond 2024. If not, they sent a Vikings-obtained second-round pick to Buffalo for one year of Diggs, who will turn 31 in November.