Steelers Could Shock The NFL World With A Surprising Decision On TJ Watt's Contract

Pittsburgh Steelers General Manager Omar Khan has remained busy throughout the 2026 offseason. The biggest development is that a new chapter is beginning in the Steel City under the leadership of Mike McCarthy. However, there is an issue brewing in Pittsburgh. That would be a potential salary cap problem. The good thing is that Khan has built a reputation as being one of the NFL’s best problem solvers when it comes to managing contracts and finances. With it being one of his strongest traits as the leader of a front office, he should have no trouble navigating this challenge.

After the Steelers gave superstar edge rusher TJ Watt a three-year, $123 million contract — which averages $41 million per year — the team’s future financial flexibility became a major talking point. Pittsburgh still has key players from the 2023 NFL Draft class, including Joey Porter Jr., who will eventually need a significant payday. That is why many wondered whether the Steelers would consider restructuring Watt’s massive contract to create additional cap space.

PennLive Steelers insider Nick Farabaugh recently joined John Luciew to discuss Pittsburgh’s potential salary cap moves, specifically whether the team should restructure Watt’s deal or not. Farabaugh delivered a surprising take that could shock the NFL world.

"First of all, I’m not even sure they are going to restructure TJ Watt," Farabaugh said. "I would be surprised. Next year, they need flexibility, and you don’t want to just handcuff yourself and make it have to be Alex Highsmith. If you have an option where a team calls and wants TJ Watt, and Alex Highsmith is continuing to build on a really impressive last year, you want to keep all those avenues open."

Farabaugh did point out that it is important to remember that Watt's contract is massive and carries the most potential cap savings. A restructure would undoubtedly open up more flexibility, but he believes another option makes more sense for Pittsburgh. 

That would mean restructuring DK Metcalf’s deal.

"Restructuring TJ Watt is a really, really dangerous move," Farabaugh said. "They won’t work that out with Watt. I don’t think they go to Alex Highsmith either and work his. I think they’re going to go to DK Metcalf, and DK Metcalf should be enough to get a Joey Porter Jr. deal done and even a Keeanu Benton deal underneath."

If the Steelers decide not to restructure Watt’s contract, it would leave them extremely limited in terms of available cap space. It would be very un-Steeler-like to pass up an opportunity to create roughly $20.46 million in immediate cap relief.

Steelers May Potentially Be Silently Prepping For Watt's Regression

However, if Pittsburgh chooses that route, it could indicate that the organization believes a decline from Watt may eventually be coming. The Steelers would be choosing to accept a significant financial burden rather than further committing themselves to a veteran edge rusher entering his mid-30s.

If Farabaugh’s prediction proves to be accurate, it would be a telling admission from the Steelers’ front office. Instead of restructuring Watt’s deal, Pittsburgh could find more long-term value by restructuring Metcalf’s contract, creating the flexibility needed to extend players like Porter and Keeanu Benton. 

Based on Farabaugh’s comments, that appears to be the direction the Steelers could ultimately take.  Khan is a financial wizard when it comes to navigating the salary cap, and his next moves will be very telling for several reasons.

Please feel free to share your Steelers takes and thoughts with me on X (@anthonyghalkias) and consider following for more Steelers-related content and discussion. I’m always open to hearing different perspectives, breaking down games, and talking all things Pittsburgh football. Whether it’s roster moves, coaching decisions, or game-day reactions, I read and respond whenever I can. Your input helps drive the conversation and keeps the Steelers community active and engaged. 

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