The Bills unloaded Stefon Diggs' massive contract in a trade with the Texans on Wednesday. A day later, Houston is giving Diggs the option to get out of the contract early.
Diggs had signed a four-year, $96 million extension with the Bills before the start of the 2022 season. The contract locked him in through 2027.
Trading Diggs incurred a massive dead cap hit for the Bills, who were clearly ready to part ways with the star receiver. Buffalo received a 2025 second-round pick, a 2024 sixth, and a 2025 fifth for Diggs.
Houston would have had him under contract for the next four seasons, giving C.J. Stroud another star receiver to play alongside Nico Collins and Tank Dell, who are all still on rookie deals. Collins is extension-eligible this offseason and a free agent after 2024, and Dell is under contract through 2026. Stroud will be under contract through 2027, assuming the Texans opt to pick up his fifth-year option.
However, the Texans have decided to restructure Diggs' deal, allowing him to hit free agency significantly earlier than anticipated. Here's what you need to know about his deal.
GRADES: How each team fared in Diggs' trade
Stefon Diggs contract details
Diggs was originally slated to be under contract through 2027. He's now only under contract through the upcoming season.
Houston eliminated the final three years on Diggs' contract, which will allow him to hit the open market following the 2024 season, according to ESPN's Adam Schefter.
As part of the restructured deal, the Texans are also moving Diggs' $3.5 million guaranteed for 2025 into 2024 to ensure he has $22.52 million in guarantees for the season. As The Monday Morning Quarterbacks' Albert Breer pointed out, the $22.52 million also means a franchise tag for Diggs next year would top $27 million.
WR DEPTH CHART: Texans | Bills
Per Schefter, the hope is that by putting Diggs into a contract year, Houston will get even more out of the 31-year-old receiver, who will be prepping for his first foray into free agency next offseason.
By moving the $3.5 million to 2024 and giving him a raise to $22.52 million, Diggs has no more guarantees left on his contract after this season. He had salaries of $18 million, $19.1 million, and $14.5 million left, according to Spotrac.
MORE: How Bills will replace Diggs after Texans trade
Stefon Diggs dead cap
The Bills will ultimately wind up absorbing more of a hit from the life of Diggs' contract than the Texans.
Buffalo took a dead cap hit of $31.096 million by trading him before June 1, which is the highest dead cap charge for a wide receiver in any season, per ESPN. Spotrac lists that cap hit as taking up 12.12 percent of the team's 2024 cap. His cap hit is higher than Josh Allen's of $30,356,281, the largest of any player on the active roster.
