Texans alter Stefon Diggs' contract after trade, set him up for free agency in 2025

Tyler Greenawalt

Texans alter Stefon Diggs' contract after trade, set him up for free agency in 2025 image

The Texans restructured Stefon Diggs' contract after acquiring him from the Bills in a trade. 

Houston got rid of the final three non-guaranteed years of his contract and added the $3.5 million left in guaranteed money onto his 2024 salary, according to ESPN's Adam Schefter.

What this effectively means is that Diggs will join Houston on a one-year $22.52 million deal for 2024 where he'll become a free agent after this season.

While that may sound like a big question mark after the team sent a 2025 second-round pick for him, the idea here is that Diggs will be more incentivized to perform on a one-year this season and set him up to negotiate a new deal after the year — with the Texans or some other team.

This also sets up an interesting situation with Nico Collins, who is eligible for a contract extension this year and is an impending free agent in 2025. If the Texans don't strike a deal with Collins, it would mean two of Houston's top three pass-catchers could be free agents after the season.

The benefit of this deal for Houston is that general manager Nick Caserio can set the terms of a new deal if Diggs wants to remain with the Texans. Diggs would have made at least $18 million in base salary in 2025 and 2026 if Houston retained him on his current deal. Now, the Texans can re-sign to a different contract if the two sides want to stay together.

It's a risky move for the Texans, though. A second-round pick is a lot to give up for what could amount to a one-year rental for Diggs. And considering there was no guaranteed money left on Diggs' contract after this year, the Texans effectively had him on a one-year deal already with three years of team options.

Now, Diggs could walk for more money even if he enjoyed a good season in Houston. But maybe that's what Caserio wanted all long.

Tyler Greenawalt

Tyler Greenawalt Photo

 

Tyler Greenawalt is a contributing writer for The Sporting News after stops at Yahoo Sports, USA Today Sports and Turner Sports. He’s worked in written, video, social media and augmented reality content since he graduated from Syracuse University in 2014. His favorite teams – the New York Jets, Orlando Magic and Tottenham Hotspur – always find new and exciting ways to disappoint him, and he consistently questions his fandom. You can follow his bad sports takes at @TyGreen14 on X.