After reportedly tense negotiations, edge rusher T.J. Watt has agreed to a new contract with the Pittsburgh Steelers.
NFL Network’s Tom Pelissero reported Thursday afternoon Watt and the Steelers agreed to a three-year extension worth $123 million. The new contract gives Watt an average annual salary of $41 million.
That makes Watt the highest-paid non-quarterback in the NFL. Cleveland Browns edge rusher Myles Garrett previously held that title. Garrett’s extension in March 2024 earned him an average annual salary of $40 million.
Minutes after Pelissero broke the news of Watt’s extension on X, Watt posted a picture on Instagram. The picture was of Watt celebrating in his full Steelers uniform. The edge rusher didn’t include any caption along with the post.
The extension for the 2021 NFL Defensive Player of the Year comes about a week after NFL and Steelers insiders reported the two sides were not close to an agreement.
The edge rusher’s age and disappointing finish to the 2024 season led some pundits to speculate that the Steelers weren’t willing to make him the highest-paid non-quarterback in the league again. Watt held that title with his last contract extension, which he signed just before the 2021 season.
In 2024, the Steelers edge rusher posted 11.5 sacks, which was his fewest total in a full season since his rookie campaign.
But despite that lower-than-normal sack total, Watt still leads the NFL in sacks since he came into the league in 2017. He’s led the NFL in sacks twice and finished at least third for the league’s Defensive Player of the Year award four times.
During 2021, he won that award while tying the NFL’s single-season sack record with 22.5.
Confusing Reports on T.J. Watt Extension
There are some differing reports on the amount and length of the edge rusher’s new deal. Technically, they aren’t conflicting, but they are likely still confusing to the average fan.
NFL Network’s Ian Rapoport and ESPN’s Adam Schefter confirmed Pelissero’s report that the Steelers and 2021 Defensive Player of the Year winner agreed to a three-year extension worth $123 million.
But The Pittsburgh-Post Gazette’s Gerry Dulac and The Tribune Review’s Joe Rutter tweeted the deal between the Steelers and Watt is worth $144.05 million over four years.
Based on the constant updates this summer on Watt’s potential contract, those details are important. The edge rusher isn’t the highest-paid non-quarterback in the league with $144 million over four years.
The Steelers and Watt, though, are apparently ripping up the final year of his current contract to replace it with this new four-year deal. Watt had one year remaining on a contract that was paying him about $28 million per season.
Watt will make an average of $36 million per season over the next four years, including 2025. That average annual salary would put him second behind Garrett.
But excluding this season, which the edge rusher was already under contract for, Watt will be paid $41 million per season from 2026-28.
https://x.com/MarkKaboly/status/1945946814697357481
Structuring the contract in this way gives each side the best of both worlds. Watt can lay claim to being the highest-paid non-quarterback again. He also received a pay raise for 2025. Meanwhile, the Steelers avoided anything with Watt beyond 2028 when he will be 34 years old.
Other Details of Watt’s New Contract
Average annual salary was reportedly a key detail in Watt’s contract negotiations. But the deal’s guaranteed money is a much more important factor.
The edge rusher’s new deal guarantees him $108 million. That’s $30 million more than his previous extension.
The full contract breakdown over the next four years isn’t available yet. But Spotrac reported Watt’s cap hit in 2025 will now be about $30.4 million.
His cap hit for each year over the rest of the deal will likely surface in the next couple days.
Watt might not hold the title of highest-paid non-quarterback for long. Fellow edge rushers Micah Parsons, Trey Hendrickson and Aidan Hutchinson will all need new deals soon. Parsons and Hendrickson could ink contract extensions before the season begins.
Parsons and the Dallas Cowboys are very likely to top Watt’s average annual salary record.
