Texans salary cap situation following Stefon Diggs trade

Stefon Diggs is a Texan, along with most of his contract.

Houston won’t inherit all of it, though, as the Bills will eat $31 million in dead cap money as a result of the trade to the Texans. But Diggs will take up a significant portion of the Texans’ cap space in 2024.

The Texans had around $32 million in salary cap space before the trade after general manager Nick Caserio restructured the contracts of offensive linemen Shaq Mason and Tytus Howard. Now, the Texans will have around $11.45 million in cap space if Diggs’ current cap hit of $19 million hits the books, per TexansCap.

The beauty of when the Texans acquired Diggs, though, is that there is no more guaranteed money left on his deal after 2024. Diggs’ entire base salary of $18.5 million this season is guaranteed, but the Texans can move off of Diggs for nothing in 2025 or later if the partnership doesn’t work out, according to Over the Cap.

But Houston keeps him following this season, he’ll count $18.5 million against the cap in 2025, $19.56 million in 2026 and $18 million in 2027.

There is speculation, of course, that Houston could restructure Diggs’ current deal before he even plays a snap for the team. Considering there is no guaranteed money following this season, Diggs would be wise to spread out the money he’s owed in 2024 over the next few years. That would alleviate Houston’s cap hit this season, too.

The Texans could save around $13 million in cap space in 2024 with a basic restructure, per TexansCap. That move would then create some dead cap situations in 2025 that would make a split a bit harder for Houston.

Overall, Diggs’ contract isn’t a huge concern for the Texans in 2024 and beyond thanks to the cap moves by Caserio over the past few offseasons. If Diggs continues to be the Pro Bowl wide receiver he’s been throughout most of his career, the move will be hailed as a major success for the organization. And if Diggs doesn’t work out, the consequences aren’t that bad, either. 


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