In the face of major season-ending injuries to the NFL’s highly paid quarterbacks, this has become one of the important questions awaiting in the wake of the disaster: How much of the quarterback’s contract was assured?
After determining the type of injury, after addressing the player’s physical and mental well-being, and after taking a step back and understanding the path forward, the reality of the financial implications comes into play. Cleveland Browns and Deshaun Watsonthe impact of these implications – specifically related to insurance covering his 2024 salary – could be immense.
According to two sources familiar with Watson’s contract, at least part of Watson’s remaining 2024 salary is actually covered by an insurance policy. The precise amount that is covered for a possible season-ending Achilles injury – and how much of that coverage could be rolled into salary cap relief in 2025 – is not yet publicly known, largely because that only the Browns and their chosen insurer know the precise language and payouts of the insurance policy. Not all injuries are covered (although Achilles tendon injuries are considered fairly common) and the amount of coverage varies between teams depending on the premiums they choose to pay.
“The credit cap (in 2025) will reflect the payment,” a source told Yahoo Sports. “Or whatever the Browns reveal – if they say anything. I doubt they’ll make this public. Most teams don’t like to talk about insurance policies.
The subject of insurance covering season-ending injuries came to the fore last season, when reported that the New York Jets failed to protect any of the $37 million in guaranteed salary owed to Aaron Rodgers.. That misstep proved significant after Rodgers tore his Achilles tendon just minutes into the Jets’ season, causing him to miss 16 games. If the Jets had purchased a policy to cover this injury, part of that $37 million guaranteed could have been added to the team’s salary cap for 2024. As part of the agreement reached between the NFL and the union players, insurance benefits paid to teams in the event of significant player injuries may be credited against the following season’s salary cap.
In theory, if the Jets had been able to secure Rodgers’ $37 million for the 2023 season, a significant portion of that money could have been credited toward the team’s cap hit in 2024. But the Jets ultimately passed on the policy, which likely would have carried a premium in the millions depending on the amount of Rodgers’ salary insured and injuries covered.
As of Sunday evening, the Browns had still not declared the extent of Watson’s injury, although video appeared to show a ruptured Achilles. Browns head coach Kevin Stefanski confirmed it was an Achilles tendon injury and said there were fears it could end the season.
“I think we need to do the test to confirm, but that’s what it looks like,” Stefanski said, after the Browns lose 21-14 to the Cincinnati Bengals.
As it stands, Watson’s base salaries in 2025 and 2026 total $46 million per season. But due to Cleveland restructuring his contract and adding a void year (to create cap space in 2023 and 2024), his cap charge is much higher. If he were to be traded or released this offseason, the total amount that would be accelerated onto the Browns’ cap for 2025 would be an unfathomable $172.7 million. That makes Watson virtually uncut and untradeable unless a team is willing to take on the remaining $92 million in guaranteed salary owed to him in 2025 and 2026.
For now, the only cap relief the Browns have in mind will be related to the insurance policy that was taken out on his 2024 salary – protecting the remainder of the games he might miss this season – and also a part of 2025 – if missing. the start of next season while recovering.
