As training camps loom around the league, T.J. Watt is one of several notable edge rushers whose financial situation is uncertain. He and the Steelers hope to work out another extension, but considerable work still needs to be done. 
Watt was absent from minicamp with no agreement imminent. That remains the case at this point, with both guaranteed money and term length representing sticking points in negotiations. The top of the pass rush market has been known for months, though, leading many to believe other factors are leading to hesitation on the Steelers’ part.
Indeed, Pro Football Talk’s Mike Florio reported during a recent appearance on 93.7 The Fan (video link) the sense around the league is that Pittsburgh is hesitant to make another long-term Watt commitment based on how last season ended. Watt wound up with 11.5 sacks and a league-leading six fumbles in 2024. His performances down the stretch and during the team’s wild-card loss fell short of his All-Pro standards, however.
Taking that into account along with his age (31 in October), Watt is not as straightforward of a candidate for a market-topping deal as he was in 2021. That year, the Steelers moved him to the top of the pecking order at an average of just over $28MM. That figure has since been surpassed several times over, and Myles Garrett moved the bar to $40MM per season with his latest Browns pact. Watt aims to surpass him on his third Steelers contract, but the team will need to weigh a potential falloff in production over the coming years.
A torn pec limited Watt to 10 games in 2022. During each of the two seasons preceding that one as well as the campaign following it, however, the seven-time Pro Bowler led the NFL in sacks. That will no doubt be a point of emphasis from his side during negotiations, a process which could last well into the summer. In 2021, Watt engaged in a hold-in during training camp until his deal was finalized mere days before the start of the campaign. A similar sequence could be in store this time around, with Week 1 representing a hard deadline given the Steelers’ philosophy of not negotiating contracts in-season.
The Steelers own a 1-10 record in games Watt has not suited up for during his decorated career. Given the team’s offseason moves centered on competing in 2025, a trade sending him elsewhere would come as a major surprise. Still, speculation about Watt’s situation will continue until an agreement is in place. It will be interesting to see if general manager Omar Khan winds up making a similar investment to the one his predecessor (Kevin Colbert) made four years ago or if he leaves the door open to a potential 2026 free agent departure.