The Texans and quarterback Deshaun Watson have their new deal. We have the details.
So here they are:
1. Signing bonus: $27 million, with half payable in the next 15 days (subject to Watson passing a physical), another $6.75 million paid by October 20 and the remaining $6.75 million paid by December 20.
2. 2020 salary: $1.177 million, guaranteed for skill, injury, and cap.
3. 2021 salary: $10.54 million, guaranteed for skill, injury, and cap.
4. 2022 salary: $35 million, guaranteed for skill, injury, and cap.
5. 2023 roster bonus, due fifth day of the 2023 league year: $17 million, guaranteed for injury at signing and guaranteed for skill, injury, and cap on the fifth day of the 2022 league year.
6. 2023 salary: $20 million, guaranteed for injury at signing and guaranteed for skill, injury, and cap on the fifth day of the 2022 league year.
7. 2024 salary: $32 million.
8. 2025 salary: $32 million.
The deal also includes an annual $500,000 de-escalator, if Watson fails to participate in at least 84.375 percent of the offseason program.
The new years of the deal — 2022 through 2025 — include $1 million in annual escalators payable if the team wins the Super Bowl and if Watson participates in at least half the offensive plays in the Super Bowl.
Here’s some analysis of the deal, which pays out $156 million in new money ($39 million per year), and has a total value at signing of $174.17 million ($29.11 million per year).
First, it has three years fully-guaranteed for skill, injury, and cap. With the signing bonus, that’s $73 million in full guarantees at signing.
Second, the $37 million payable in 2023 fully vests in 2022. Which means that, in order to avoid owing Watson $110 million over four years, they’ll have to cut him after two years — and owe him $73 million.
Third, Watson beats Mahomes in the primary metrics for assessing long-team deals. Watson gets $17 million more to sign, more than $17 more in first-year cash, more than $5 million more through two years, $10 million more through three years, and $7 million more through four years.
At that point, Watson will be under contract for two more years — and Mahomes will be under contract for eight more years.