The Houston Texans have acquired wide receiver Stefon Diggs in a trade. The 30-year-old has subsequently agreed a contract adjustment with his new employer – and is now only under contract for the coming season

Wide receiver Stefon Diggs will catch balls from quarterback C.J. Stroud next season. The veteran came via trade from the Buffalo Bills and will strengthen the Houston Texans’ offense.

However, as NFL insider Adam Schefter reports, it could be a short-lived commitment. This is because the Texans have shortened Diggs’ contract.

Originally running for the next four seasons, Diggs is now only under contract for the upcoming season. He will now receive 22.5 million US dollars for this season.

Stefon Diggs: Free Agent 2025

Diggs’ previous deal, however, only had guarantees of 3.5 million US dollars after the upcoming season (which he will now receive next season instead). So the wide receiver would probably have insisted on a contract adjustment with more guaranteed salary anyway.

Normally, teams that make a high-priced trade will sign their rookies to long-term deals. Instead, the Texans are going all-in with Diggs for the upcoming season.

So Diggs can now either negotiate a new contract with the Texans in the next few months or as a free agent with all other teams in 2025.

Houston Texans and Stefon Diggs: Two possible scenarios

There are two possible scenarios for the Texans (simplified down).

Scenario 1: Diggs fulfills expectations

In this case, the Texans could insist on a contract extension. However, there is also the option of letting Diggs go. If he then signs a high-dollar contract with another team, the Texans will not receive a compensatory pick because Diggs’ contract was shortened (if a player is released early or his contract is shortened, the losing team does not receive a compensatory pick).

Scenario 2: Diggs does not meet expectations

If Diggs turns out to be a bust, the Texans could look at a favorable contract extension or easily let him go. However, he would again not bring in a compensatory pick. The capital invested in him (draft pick and contract cost) would be more or less wasted.