T.J. Watt's standoff with the Pittsburgh Steelers is over.
The four-time All-Pro edge rusher and 2021 Defensive Player of the Year has agreed to a three-year, $123 million extension with Pittsburgh that makes him the highest-paid defender in the league, NFL Network Insiders Ian Rapoport and Tom Pelissero reported on Thursday.
At $41 million per year, Watt's deal sneaks past Myles Garrett's record-setting four-year, $160 million deal agreed upon in March and resets the edge-rusher market for the third time in 2025. Watt also leap frogs Bengals receiver Ja'Marr Chase's $40.3 million average for the title of highest-paid non-QB.
Watt's place in the Steelers organization cannot be understated. He's earned a Pro Bowl nod in each of the last seven seasons, landed All-Pro honors in five of the last six campaigns and is a mainstay in the race for Defensive Player of the Year, often alongside Garrett. With 108 career sacks, 33 forced fumbles, 462 tackles (126 for loss) and seven interceptions, he's cemented his standing as an elite defender deserving of a massive extension.
What does Watt's deal mean for Steelers?
Watt's deal was the last remaining item on a long to-do list for Steelers general manager Omar Khan. Now that he's checked off that box, Pittsburgh can enter camp without any lingering questions involving its most important pieces.
Watt will return as a gem in a defense that welcomed the additions of cornerback Jalen Ramsey, safety Juan Thornhill, Oregon rookie defensive tackle Derrick Harmon and cornerback Darius Slay. There are enough new faces to expect an adjustment period, but on paper, the Steelers appear stronger than they were a year ago -- especially with Watt now guaranteed to play an essential role.
Plenty of eyes will be trained on St. Vincent College in Latrobe, Pennsylvania when veterans report for camp on July 23 because of Aaron Rodgers' involvement as their chosen starter at quarterback for 2025, but fortunately, teammates (like veteran Cam Heyward) won't be subjected to countless questions about Watt's finances.
For a period, it seemed as if Watt might not receive this deal. Watt skipped mandatory minicamp and went as far as including a peace sign in a social media post in April, sparking fears among Steelers fans they might lose their most valuable player after eight seasons spent in Pittsburgh. Those fears persisted throughout a busy offseason in which Khan remodeled the team's offense with a trade for DK Metcalf and free-agent addition of Aaron Rodgers, then capped it with a blockbuster trade that sent Minkah Fitzpatrick to Miami in exchange for Ramsey and tight end Jonnu Smith.
In the end, Watt's deal was the true cherry on top. He'll turn 31 in October, and with four years left after this extension, it's likely he'll finish his career in the same uniform in which he began.
What does this mean for edge rusher market?
Watt's deal, while not guaranteed, was undoubtedly deserved and considered by some to be inevitable. Now that it's done, the attention turns to two more elite rushers -- Cincinnati's Trey Hendrickson and Dallas' Micah Parsons -- and an ascending star in Detroit's Aidan Hutchinson.
Hendrickson is embroiled in his own standoff with the Bengals, which has included public statements of dismay from Hendrickson with little suggestion the two sides are nearing a deal. With 17.5 sacks in each of his last two seasons -- a mark that was the best in the NFL in 2024 -- Hendrickson has a strong case for a multi-year extension, and because Watt's deal only moved the market forward incrementally at $1 million more per year than Garrett's deal, Hendrickson remains in a similar negotiating position as he enters the final year of his contract. Cincinnati cleared nearly $6 million in cap space by releasing Germaine Pratt in early June, leaving then with $31.9 million in effective cap space, per Over The Cap, a total that would make fitting in a comparable deal for Hendrickson possible, even if it tests the limits of their budget.
At minimum, Watt's deal applies additional pressure on the Bengals to work something out with Hendrickson, especially with training camp right around the corner. That doesn't guarantee this doesn't drag into August, though.
The Cowboys have already learned they'd missed the window to sign Parsons to a team-friendly deal, especially after the market exploded with deals for Maxx Crosby, Garrett and now Watt. They're undoubtedly going to pay a premium to keep Parsons, a four-time Pro Bowler and two-time first-team All-Pro who possesses game-changing potential and will command top dollar. He's entering the final year of his rookie deal in 2025, and with little reason to believe the two sides are close to an agreement, expect Parsons' contract situation to remain in the headlines for weeks to come, if not months.
The Lions have a larger window than Dallas and Cincinnati to work out a deal with Hutchinson and might choose to use that time, especially considering Hutchinson is returning from a significant leg injury suffered in 2024, one that ended a season that was building toward a Defensive Player of the Year candidacy. With two years left on his rookie deal, Hutchinson has time to prove to the Lions he's worth the money, while Detroit -- a team that isn't afraid to lock up their best players early -- can also patiently craft a deal that makes sense for both sides.
