The salary cap impact of TJ Watt’s new contract

A look at the highest paid players in 2026 with offense & defense breakdown
TJ Watt looking up with practice gear on
Photo credit Eric Hartline-Imagn Images

PITTSBURGH (93.7 The Fan) – Because this is an extension, nothing changes for the Steelers and their salary cap for this year after TJ Watt agreed to a three-year, $123 million-dollar extension with $108 million guaranteed according to the NFL Network Thursday. It’s into the future where it sets a number the team will have to work with.

As for 2025, according to overthecap.com, the Steelers still have $10.5 million of room under the salary cap. Watt is the highest paid player on the team for 2020 by nearly $11 million over Cam Heyward and Jalen Ramsey.

2026
We know by what is reported that Watt will make $36 million guaranteed with $41 million total. That makes his salary cap hit $10 million more than the second highest paid player, receiver DK Metcalf $31 million ($25 million guaranteed). The highest paid Steelers would look like this in terms of cap hit per overthecap.com in 2026…
·     LB TJ Watt              $41 million
·     WR DK Metcalf     $31 million
·     LB Alex Highsmith $20.1 million
·     DB Jalen Ramsey  $19.5 million
·     DT Cam Heyward  $19.1 million
·     LB Patrick Queen  $17.1 million
·     TE Pat Freiermuth $11.2 million
·     TE Jonnu Smith     $10.8 million

To divide them by sides of the ball, offense $89.62 million, defense $155.86 currently for 2026. The Steelers would only have $5.68 million committed to quarterback (Mason Rudolph $4.62 million, Will Howard $1.067 million) next season.

Among the key players who become free agents in 2026
·     QB Aaron Rodgers ($14.1 million)-said this is likely his final season
·     CB Darius Slay ($10 million)-will turn 35-years-old next season
·     G Isaac Seumalo ($8 million)-will be entering his 11th year in the NFL
·     RB Jaylen Warren ($5.34 million)-likely to be a first-year starter in 2025
·     S Miles Killebrew ($3.25 million)-special teams captain
·     S Juan Thornhill ($3 million)-currently vying to be a starter with Minkah gone
·     WR Calvin Austin ($1.04 million)-enters training camp as number 2 receiver
·     TE Connor Heyward ($953, 806)-final year of rookie deal

Featured Image Photo Credit: Eric Hartline-Imagn Images