The wait has ended for T.J. Watt and the Steelers to work out an extension. Team and player have agreed to terms on another monster pact. 
Watt has landed a three-year, $123MM extension, ESPN’s Adam Schefter reports. The pact includes $108MM in full guarantees. With an average annual value of $41MM, Watt has once again claimed the title of the league’s top earner for defensive players and all non-quarterbacks.
Myles Garrett reset the edge rush market when he signed a Browns pact averaging $40MM per year. Ja’Marr Chase did the same at the receiver position when his Bengals extension (carrying an AAV of $40.25MM) became official. To little surprise, Watt has surpassed both of those figures while helping to ensure he will finish his career in Pittsburgh. Progress has been made rather rapidly, as Mark Kaboly of the Pat McAfee Show notes no agreement was imminent as recently as six days ago.
Both parties in this case expressed a desire to work out a deal months ago, but Watt hinted at dissatisfaction with the early state of contract talks. Over time, this became one of many tense situations involving edge rushers around the league. A major domino has now fallen, though, and Watt is on the books through 2028. This agreement falls short of the length he was seeking, but the former Defensive Player of the Year has succeeded in moving the bar for pass rushers and securing multiple years of locked in money.
Watt has led the NFL in sacks on three occasions (2021-22 and 2024) and he has played in every game the past two seasons after a pec tear cost him notable time in 2023. However, a downturn in play late in the campaign and into the postseason last year was viewed as cause for concern on the Steelers’ part regarding a new deal. Watt already reset the market in 2021, but doing so as he enters his age-31 season obviously carries risk for the team. General manager Omar Khan and Co. are certainly banking on a major drop-off not taking place for several more years.
Watt has operated as the anchor of Pittsburgh’s EDGE group over the course of his All-Pro career, and he will remain in that role well beyond the coming season. Rumors about a potential trade circulated amidst his decision to skip minicamp, but a deal never seemed likely or imminent. A holdout (or at least hold-in) effort during training camp will now not be necessary to get this deal over the finish line, something which was the case last time for Watt.
Alex Highsmith has recorded at least six sacks in each of the past four years, and he remains on the books through 2027. He will remain a starter along the edge, with Nick Herbig and fourth-round rookie Jack Sawyer operating as rotational contributors. Watt (who has amassed 33 fumbles and 126 tackles for loss in his career) will be counted on to lead the way in terms of production once again this year and well beyond that point.
The seven-time Pro Bowler has yet to win a playoff game in his career, something Khan and the Steelers have aimed to change this offseason. Pittsburgh has aggressively pursued several new players through trade and free agency, breaking with standard practice in some regards. Quarterback Aaron Rodgers, receiver D.K. Metcalf, cornerbacks Jalen Ramsey and Darius Slay as well as tight end Jonnu Smith are among the new faces which will be relied on to end the Steelers’ drought for playoff wins in 2025.
Watt will of course also be a central figure in that effort. Regardless of if things go according to plan this year, though, he will remain in place for the foreseeable future.