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Steelers Willing To Pay T.J. Watt Over $40M Per Year But He’s Seeking Third Year Of Guarantees

July 17, 2025 by NFL Trade Rumors

Steelers OLB T.J. Watt is still without a new contract despite training camp opening next week.

T.J. Watt

Steelers beat writer Mark Kaboly previously talked about the issues in negotiations, saying the two sides were in disagreement over basically everything. 

Per Nick Farabaugh of Penn Live, the biggest issue in the Watt contract discussions is a potential third-year guarantee, not average annual value. Farabuagh believes the Steelers are willing to make Watt the highest-paid non-quarterback with a deal in the $40 million per year range.

Although Farabaugh says “the deal does not seem all that close,” he points out that the two sides have had open communication, which is good compared to the situation with Commanders WR Terry McLaurin. 

The booming market for NFL edge rushers has set Watt up to have a deal in the range of $40 million a year, but there appears to be some trepidation from the Steelers in signing an aging player to that kind of contract. 

Watt, 30, is a former first-round pick of the Steelers back in 2017. He played out his four-year, $9.258 million contract and made a base salary of $1.72 million in 2020.

Pittsburgh exercised Watt’s fifth-year option for $10.089 million in 2021. He then signed a four-year extension worth over $112 million with the Steelers that included $80 million fully guaranteed at signing.

In 2024, Watt appeared in all 17 games and recorded 61 total tackles, 19 tackles for loss, 11.5 sacks, six forced fumbles, two recoveries, and four pass defenses.

We’ll have more on Watt as the news becomes available.

The post Steelers Willing To Pay T.J. Watt Over $40M Per Year But He’s Seeking Third Year Of Guarantees appeared first on NFLTradeRumors.co.

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