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.