What Will Deshaun Watson’s Contract Extension Look Like?

The Texans fired their contract negotiator and salary cap manager

Payne and Pendergast
January 20, 2020 - 11:00 am

HOUSTON (SportsRadio 610) -- Deshaun Watson is entering the last year of his rookie deal and is due for a massive contract extension. 

Watson's three seasons as the Texans' quarterback has already produced two playoff appearances and the three highest passer ratings posted in franchise history, improving in each season.

The Texans fired their contract negotiator and salary cap manager Chris Olsen over the weekend, meaning head coach Bill O'Brien is likely to have a larger role in negotiating the contract.

Watson is expected to command an extension worth about $190 million over five years. 

Here is the contract projection via TexansCap:

"The focus points for this contract is New Money APY, Three Year Cash, and Total Guarantees; the projection exceed those current market values.  The contract does come up slightly below the other aforementioned contract metrics.  Given the CBA constraints and value variety of the mentioned contract metrics, it was not possible to exceed all the benchmarks.

"Further details:  5 year contract extension (6 year paper total) totaling $190 million in new money, providing a new money APY of $38 million.  The contract includes $92.8 million “virtually” guaranteed at signing with a total guarantee value of $113.3 million.  The contract includes a $5 million signing bonus, $8 million lump sum roster bonus in 2020 and $5 million lump sum roster bonus in 2021 (both roster bonuses are guaranteed 3 days after signing), with full guarantee salaries in 2020, 2021, and $27.445 million guaranteed in 2022.  There is a team option in 2021 worth $18 million and a lump sum roster bonus of $2.5 million in 2022. The option needs to be declared by the 2020 league year Superbowl, and is paid on the 5th day of the 2021 league year.  The contract is originally a 4 year extension but the option adds the fifth year on the contract.  If the team does not activate the option, then $18 million of Watson’s 2023 salary become fully guaranteed.  The 2022 roster bonus is guaranteed for skill and injury only at signing, and will vest to a full guarantee for skill, cap, injury on the 5th day of the 2021 league year.  The contract includes per game roster bonus money in 2023-2025 paid at $31,250 per game active totaling $500,000 per year."

Listen to Payne & Pendergast discuss it here: