T.J. Watt Agrees to Restructure Contract, Freeing Up Cap Space for Steelers’ Future Moves

Pittsburgh, March 12, 2025 – The Pittsburgh Steelers have taken a significant step toward bolstering their salary cap flexibility, as star outside linebacker T.J. Watt has agreed to restructure his contract, freeing up substantial cap space for the 2025 season. According to team sources, the move slashes Watt’s massive $30.4 million cap hit for the year, potentially saving the Steelers upwards of $12-13 million as they prepare for a busy offseason.

Watt, the 2021 NFL Defensive Player of the Year and a cornerstone of Pittsburgh’s defense, is in the final year of a four-year, $112 million extension signed in 2021. His cap hit—among the highest on the roster—had loomed as a potential hurdle for GM Omar Khan, who faces critical decisions with free agents like QB Justin Fields and a glaring need for offensive upgrades. By converting a significant portion of Watt’s $21 million base salary into a signing bonus and prorating it over the remaining term (with possible void years added), the Steelers have created breathing room without altering Watt’s overall compensation.

The restructure, finalized just as free agency opened today, underscores Watt’s commitment to the franchise that drafted him 30th overall in 2017. “T.J. understands the business side and wants to see this team compete at the highest level,” a source close to the negotiations said. “He’s giving Pittsburgh the flexibility to make moves that keep them in the Super Bowl hunt.”

The financial windfall couldn’t come at a better time. With Najee Harris now with the Los Angeles Chargers and Fields’ future uncertain, the Steelers have already inked former Eagles RB Kenneth Gainwell to a one-year deal and ex-Ravens LB Malik Harrison to a two-year pact. Posts on X suggest fans are buzzing about potential targets like a top-tier wide receiver or even a quarterback splash—perhaps Sam Darnold, rumored to be on Pittsburgh’s radar with a $160 million price tag. Watt’s restructure could be the key to unlocking such blockbuster pursuits.

This isn’t the first time Watt has helped the Steelers’ cap situation. In 2022, he restructured his deal to free up $6.75 million ahead of the regular season, a move that allowed for last-minute roster tweaks. This latest adjustment, however, feels more strategic, positioning Pittsburgh to act aggressively in a market where cap space is king. With OverTheCap estimating the Steelers’ 2025 cap space at $65 million before this move, the added cushion could push them closer to $80 million—ample firepower for Khan to reshape the roster.