Report: Houston Texans Overhaul Stefon Diggs' Contract After Buffalo Bills Trade

Former Buffalo Bills receiver Stefon Diggs will be a free agent again next offseason after the Houston Texans wiped out the final three years of his contract.

Jan 21, 2024; Orchard Park, New York, USA; Buffalo Bills wide receiver Stefon Diggs (14) reacts / Mark J. Rebilas-USA TODAY Sports

Stefon Diggs' contract that effectively forced the Buffalo Bills' hand is no longer much of an issue.

The Houston Texans, Diggs' new team, wasted no time in overhauling his contract. According to ESPN's Adam Schefter, the Texans wiped out the final three years of Diggs' contract, meaning he will hit free agency next offseason.

Houston also moved Diggs' $3.5 million guaranteed in 2025 and moved it to 2024, so he will receive $22.52 million guaranteed for next season. That movealso means that Diggs has no guaranteed money left on his contract after 2024.

Jan 21, 2024; Orchard Park, New York, USA; Buffalo Bills wide receiver Stefon Diggs (14) reacts / Mark J. Rebilas-USA TODAY Sports

The overhaul to Diggs' contract should benefit both him and the Texans. Diggs now has greater incentive to bounce back after a poor showing in the second half of last season, as he could negotiate another big deal next spring. If he doesn't bounce back, the Texans can move on without much issue.

As mentioned previously, Diggs' massive contract played a large part in the Bills' decision to trade him. The team will eat a dead cap hit of over $31 million in 2024, but after that, he's officially off the books.

Buffalo signed Diggs to a four-year, $104 million extension in April 2022, hoping to lock down their star receiver for the foreseeable future. Unfortunately, Diggs' declining production last season and a plethora of off-field drama made that decision age poorly, and fast.

Now suddenly entering the final year of his deal, Diggs will have extra motivation to prove the Bills wrong in trading him.