Browns Restructure Deshaun Watson’s Contract, Creating $36 Million in Cap Space

CLEVELAND — The Cleveland Browns are restructuring quarterback Deshaun Watson‘s contract, freeing approximately $36 million in salary cap space ahead of the new league year, according to a source confirmed by ESPN’s Field Yates. This move comes as the team was facing a cap deficit of about $22 million prior to the restructuring.

Watson, 29, has two years left on his five-year, fully guaranteed $230 million contract, which he signed in March 2022. He is slated to earn $46 million in each of the next two seasons. Currently, he is rehabilitating at the Browns’ practice facility in Berea, Ohio, after undergoing treatment for a re-torn Achilles tendon, an injury that sidelined him for a significant portion of last season.

Browns General Manager Andrew Berry stated last month during the NFL scouting combine that ensuring Watson’s recovery is a priority. He reassured fans, saying, “There’s nothing nefarious — it’s just an unfortunate accident.” Berry has also indicated that Watson’s ongoing contract situation would not hinder the Browns’ activities in free agency, where the team is expected to pursue a veteran quarterback.

Following multiple restructures of Watson’s contract, the team has converted portions of his salary into a signing bonus, allowing them to distribute the financial impact over five years. Despite the Browns retaining a $92 million obligation towards Watson, Berry remains optimistic about their cap situation, asserting, “Our cap and cash situation will not be prohibitive for us to do things if the opportunity presents itself.”

Watson’s recent injury means he is anticipated to miss a substantial portion of the 2025 season as he continues his rehabilitation. Since joining the Browns through a trade that included three first-round draft picks, Watson has only participated in 19 games, partly due to an 11-game suspension related to personal conduct violations prior to the 2022 season and injuries that have forced him to miss substantial playing time.

In the 2024 season, Watson recorded the lowest Total QBR in the NFL before his Achilles injury occurred. The Browns are also likely to benefit from cap relief through an insurance policy on Watson’s contract due to his absence during 10 games last season. As the upcoming NFL Draft approaches, the Browns, who hold the second overall pick, are expected to consider drafting a quarterback, with top prospects visiting the team this week.