Sources: Steelers, T.J. Watt agree to 3-year, $123M extension

PITTSBURGH — T.J. Watt and the Pittsburgh Steelers have agreed to a three-year extension that will make him the highest-paid non-quarterback in NFL history — again.
Watt, who turns 31 in October, agreed to a three-year, $123 million extension with the Steelers on Thursday afternoon, sources told ESPN’s Adam Schefter, ending a contentious, monthslong contract negotiation. The deal comes with $108 million fully guaranteed at signing, and the $41 million average per year tops the $40.25 average salary given to Cincinnati Bengals star wide receiver Ja’Marr Chase and the $40 million awarded to Cleveland Browns standout edge rusher Myles Garrett earlier this offseason.
Watt, who leads the NFL with 73.5 sacks in the past five seasons, didn’t report to the Steelers’ mandatory minicamp in June as the two sides worked through negotiations. But with the contract agreed to, Watt will be expected to report to the Steelers’ training camp at St. Vincent College in Latrobe, Pennsylvania, on Tuesday.
Watt celebrated the deal by posting a picture on Instagram of him flexing and yelling in a Steelers uniform, a much different message than the one he seemingly sent earlier in the offseason with a story post of him flashing a peace sign in uniform.
Though the negotiations had continued throughout the offseason, the Steelers were confident their 2017 first-round pick would remain with the organization.
“I’m hopeful T.J. will finish his career here,” general manager Omar Khan said at league meetings in March.
Watt’s teammates were also vocal in urging the Steelers to secure the edge rusher. Not only did Aaron Rodgers voice his support for Watt in an appearance on “The Pat McAfee Show,” but defensive captain Cameron Heyward also sent a strong message to Khan about his teammate in an interview with “The Rich Eisen Show” this week.
“I’m going up to Omar and I’m telling him, ‘That’s not happening,'” Heyward said, “if there’s even a trade that gets up there. I don’t think it helps our team to trade a guy like that.”
In doing the deal now, the Steelers squash any lingering drama around one of the team’s defensive cornerstones as they enter a critical preseason after overhauling their roster with moves that included signing Rodgers and trading for All-Pro cornerback Jalen Ramsey and wide receiver DK Metcalf. The last time the Steelers made Watt the highest-paid non-quarterback in 2021 — with a four-year, $112 million deal that averaged $28 million per year — the two sides didn’t agree to a deal until days before the regular-season opener. Watt reported to training camp that year, but he mostly worked out off to the side during team periods.
The 2021 NFL Defensive Player of the Year, Watt led the league in sacks for three of his eight seasons, and he led in forced fumbles twice, including last season. Even so, Watt struggled down the stretch in 2024. He finished the year with 11.5 sacks, but he had just two sacks and four quarterback hits in the Steelers’ season-ending five-game losing streak. During those games, he played 260 of 261 snaps on the left side, according to ESPN Research. Watt acknowledged his shortcomings in that stretch and said he would be open to moving around.
“I prefer the left, but at this point in my career, I want to be an impact player,” he said in January. “I don’t want to be schemed out of games. I want to be able to deliver the football in good field positions or take the football away, and it wasn’t a good enough year for myself when it comes to that.”