What We Know About T.J. Watt's Contract Situation Following Steelers' Big Trade

The Pittsburgh Steelers are continuing to add players with Pro Bowl pedigree to their roster, with their trade for Jalen Ramsey and Jonnu Smith being the latest such additions this offseason. However, the Steelers’ situation with their top Pro Bowler remains unresolved.

Star edge rusher T.J. Watt is still seeking a long-term deal with the Steelers after holding out from mandatory minicamp. The Steelers’ trade with the Miami Dolphins seemed to only shine a brighter light on Watt’s contract situation.

A pair of conflicting reports emerged on Watt’s status shortly after the trade. ESPN reported that teams have been discussing whether they should pursue a trade for Watt, with Monday’s deal only making a possible pursuit for a seven-time Pro Bowler more likely. NFL Media, meanwhile, reported that the Steelers have no intention to trade Watt and are hoping to sign him to an extension.

Watt, who’ll turn 31 in October, is entering the final season of a four-year, $112 million and is due $21.05 million for the 2025 campaign. While his contract made him the highest-paid defensive player when he signed it in 2021, Watt has been usurped by several players since then. Fellow edge rushers Myles Garrett (Cleveland Browns), Danielle Hunter (Houston Texans) and Maxx Crosby (Las Vegas Raiders) each signed extensions this offseason that reset the edge rusher market.

Garrett’s four-year, $160 million extension was the richest of the bunch, making him the highest-paid defensive player in NFL history when he signed in March. Hunter and Crosby aren’t too far behind Garrett, though, with the former signing a one-year, $35.6 million extension and the latter a three-year, $106.5 million extension. With those deals, Watt’s contract is now the seventh-highest average annual value among all edge rushers.

The 2021 Defensive Player of the Year winner hasn’t publicly commented on his contract status this offseason. However, he did cause some internet speculation when he posted a Steelers jersey and a peace sign on Instagram in April.

As Watt is seeking a new deal, the Steelers got to work on restructuring Ramsey’s salary for the 2025 season and extending Smith as part of the trade. Pittsburgh is reportedly giving Ramsey a $1.5 million raise, bringing his salary to $26.6 million for next season, with Miami paying $3 million of that salary. Smith, meanwhile, agreed to a one-year, $12 million extension with the Steelers, according to ESPN.

T.J. Watt has been one of the game’s top edge rushers since the Steelers drafted him in 2017. (Photo by Scott Taetsch/Getty Images)

Unless Watt takes to Instagram again, we likely won’t get to hear how he feels about the recent developments surrounding his contract situation until July 23. That’s when Steelers veterans are required to report for training camp, with practices starting the next day.

With speculation of a possible Watt trade continuing Monday, there haven’t been any reported possible suitors for his services. But as Watt has recorded at least 10 sacks in six of his first eight seasons in the league, he’d almost certainly draw interest from several teams.

Still, the Steelers’ offseason approach suggests that they would likely want to keep Watt at nearly any cost. In addition to trading for Ramsey and Smith, they acquired wide receiver DK Metcalf and cornerback Darius Slay earlier in the offseason. Of course, those additions preceded the signing of quarterback Aaron Rodgers, who said last week that the 2025 season is likely his final year playing in the NFL.

On top of all of that, the pressure for the Steelers and Mike Tomlin to succeed has mounted going into 2025. Despite making the postseason for a second straight year in 2024, the Steelers struggled down the stretch, losing five in a row to finish the season. Their playoff loss to the Baltimore Ravens marked their sixth-straight postseason loss as they haven’t won a playoff game since the 2016 season.

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