Will the Pittsburgh Steelers need to restructure the contract of OLB T.J. Watt this offseason? That’s a frequent question I’ve been getting. It’s a very tough question to answer right now with certainty as we inch closer to the start of the 2026 NFL league year. While a Watt contract restructuring is certainly plausible this offseason, not knowing the Steelers’ early free agency plans might keep us wondering for several weeks if such a transaction will ultimately take place.
For starters, the Steelers should enter the 2026 league year with nearly $50 million in available salary cap space. While forthcoming annual costs account for close to half of that available salary cap space, the team might ultimately not need additional salary cap space this offseason, should their activity during the first few weeks of free agency be lighter.
With Watt not due any roster bonus this offseason, there shouldn’t be any rush to restructure his contract by Wednesday afternoon, the start of the new league year. The same goes for WR DK Metcalf, another player who could be restructured this offseason if additional large chunks of salary space are needed. Metcalf, however, is younger than Watt, and his remaining contract years extend further than the outside linebacker’s as well. In short, the Steelers could decide to restructure Metcalf’s contract this offseason instead of Watt’s, and only if there is a need to free up a large chunk of salary cap space.
As I have previously mentioned in other salary cap-related posts this offseason, the Steelers’ most plausible first contract restructuring this offseason could revolve around TE Pat Freiermuth. That’s only because he is due a $1.5 roster bonus on March 13. The Steelers could wait beyond March 13 to restructure Freiermuth’s contract, but doing so would result in less 2026 salary cap space creation because the team could no longer include the roster bonus in the process. Fortunately, we don’t have long to wait to see if something happens with Freiermuth’s contract regarding his roster bonus that’s due.
Even if the Steelers fully restructure Freiermuth’s contract before March 13, such a transaction would free up only $5,256,667 in 2026 salary c obviously nowhere near $20,466,667, which is the amount of salary cap space that a full contract restructuring of Watt would produce. Even so, the Steelers might restructure Freiermuth’s contract so that they may only need to partially restructure Watt’s or Metcalf’s contract might be needed down the road.
If you are scoring at home while following along with this post, a full Watt contract restructuring would create $20,466,667 in additional signing bonus proration past the 2026 season. That means Watt’s cap charges in 2027 and 2028 would increase to $52,233,333 and $56,283,334, respectively. Remember, the Steelers don’t owe Watt any fully guaranteed money in 2028, and thus, he might not see that final contract year if the next two seasons include his play declining sharply. Watt is also due another fully guaranteed $32 million base salary in 2027, so he’s a near lock to remain under contract through at least that season.
Assuming they cut Watt during the spring of 2028, the Steelers would incur a dead-money charge of $20,233,334 for that year, assuming they fully restructured his contract this offseason. By then, however, the NFL’s salary cap could be right round $350 million. That’s certainly something to think about right now if the team winds up restructuring Watt’s contract this offseason.
If you think the Steelers may trade Watt by the start of the 2027 regular season, I’m not sure how you can justify those thoughts. Once again, they have fully guaranteed Watt’s 2026 and 2027 base salaries of $32 million each. He’s also coming off his least productive season since 2022, when he missed seven regular-season games. Watt will also turn 32 in October, and he’s nearly three years older than Maxx Crosby, who the Las Vegas Raiders just traded to the Baltimore Ravens. In short, unless the Steelers are willing to eat a huge chunk of Watt’s base salary as part of any trade scenario, he’s going to be staying in Pittsburgh through at least the 2027 season.
In closing, while a full offseason restructuring of Watt’s contract could ultimately happen this offseason, I am leaning toward such a transaction not happening at all. Or at the very least, not a full one. As far as a plausible and possible time frame goes for any Watt contract restructuring this offseason, right before the 2026 NFL Draft gets underway would probably make the most sense. Remember, the Steelers restructured the contract of OLB Alex Highsmith right before the start of the 2024 NFL Draft, and the timing of that transaction was to allow the team flexibility if they wanted to acquire an expensive player during that weekend via a trade.
Recommended for you