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Steelers Confront Salary‑Cap Crunch After Big Extensions for T.J. Watt, Nick Herbig and Alex Highsmith

Insiders say Pittsburgh will keep the veteran and its younger rushers through the 2026 season so on‑field results next year will shape any costly post‑2026 roster moves.

Overview

  • National analysts have flagged T.J. Watt’s three‑year, roughly $123 million extension with about $108 million guaranteed as one of the NFL’s worst contracts, citing a decline in sack totals from 19 (2023) to 11.5 (2024) to seven (2025).
  • The Steelers this offseason also gave Nick Herbig a four‑year deal worth up to $100 million and have Alex Highsmith under a multi‑year contract, concentrating a large share of cap money in the team’s edge‑rushing group.
  • Watt’s deal carries fully guaranteed salary figures in 2026 and 2027 that create hard cap commitments and large potential dead‑cap charges if Pittsburgh seeks to move or cut him later in the contract cycle.
  • Voices inside Pittsburgh push back on the dire take, with beat writers saying new defensive coordinator Patrick Graham could help Watt bounce back, while former Steeler James Harrison has publicly predicted the team might release Watt after guarantees end.
  • Team sources indicate Pittsburgh plans to retain Watt and Highsmith through the 2026 season, making next year’s performance and the post‑2026 contract calendar the decisive point for any trades, cuts, or broader cap restructuring.