Sources: Watson deal reworked to shrink cap hit

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Stephen A.: Deshaun Watson 'needs to retire' if he loses QB1 battle to Shedeur (2:36)

Stephen A. Smith doesn't hold back as he calls for Deshaun Watson's retirement if he loses the starting quarterback position battle in Cleveland. (2:36)

  • Daniel OyefusiMar 6, 2026, 10:20 AM ET

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      Daniel Oyefusi covers the Cleveland Browns for ESPN. Prior to ESPN, he covered the Miami Dolphins for the Miami Herald, as well as the Baltimore Ravens for The Baltimore Sun.

The Cleveland Browns are once again restructuring the contract of quarterback Deshaun Watson, league sources confirmed to ESPN on Friday, a move that frees close to $36 million in cap space and makes the team cap compliant ahead of the new league year.

Watson, who did not play in 2025 as he rehabbed an Achilles tear from the 2024 season, was set to have an $80.7 million cap hit in 2026, the largest in the NFL.

Watson, 30, is owed a fully guaranteed $46 million salary in 2026; he originally signed a five-year deal worth a fully guaranteed $230 million deal upon being traded to Cleveland before the 2022 season. Suspension and injuries have limited Watson to 19 games since he arrived in Cleveland. Since making his debut, Watson has posted a 33.1 Total QBR, which would be the lowest among qualified passers.

He is expected to compete for the Browns' starting quarterback job alongside Shedeur Sanders, Dillon Gabriel and any other additions this offseason.

"Anytime that you have a player that at one time has exhibited the skill set at an elite level," first-year Browns coach Todd Monken said of Watson, "I think you're always going to give them the benefit of the doubt that somehow we might be able to get that out of him again, and I think that's how you should look at every player."

The Browns are also expected to restructure the contract of cornerback Denzel Ward, according to a source, as Cleveland prepares to make multiple free agent signings to improve its offense this offseason.

Cleveland.com first reported on the restructuring of Watson's contract.

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