With season-ending injuries affecting highly paid NFL quarterbacks, one pressing question looms large in the aftermath: How much of the quarterback’s contract is covered by insurance?
Once the nature of the injury is determined and the player’s health is addressed, the financial impact comes into focus. For the Cleveland Browns and Deshaun Watson, the financial implications tied to insurance on Watson’s 2024 salary could be significant.
According to sources familiar with Watson’s contract, a portion of his 2024 salary is protected by an insurance policy. However, the exact coverage for a potential season-ending Achilles injury and how it could provide 2025 salary-cap relief remains undisclosed. Only the Browns and their insurer know the specific details of the policy, including which injuries are covered and how much is insured, as this varies based on the premiums paid.
“The cap credit [in 2025] will reflect the payout,” a source explained to Yahoo Sports. However, the Browns are unlikely to make this public, as most teams avoid discussing insurance details. This issue gained attention last season when it was revealed that the New York Jets did not insure any of the $37 million guaranteed to Aaron Rodgers before he tore his Achilles, leading to significant financial consequences for the team. Had they insured the contract, a portion of that money could have been added to their 2024 salary cap under the NFL’s CBA rules.
If the Jets had insured Rodgers’ full $37 million, they could have received cap credit for 2024. However, they passed on the policy, which would have likely required a premium in the millions.
As of Sunday, the Browns hadn’t officially confirmed the extent of Watson’s injury, though video footage suggested an Achilles rupture. Head coach Kevin Stefanski acknowledged the Achilles injury and expressed concern it might end Watson’s season.
Watson’s base salaries for 2025 and 2026 are set at $46 million each, but due to contract restructuring, his cap charges are much higher. If Watson were to be released or traded this offseason, it would result in a $172.7 million cap hit in 2025, making it nearly impossible to cut or trade him unless another team takes on his remaining $92 million guaranteed.
For now, the Browns’ only potential cap relief comes from the insurance policy covering Watson’s 2024 salary, which could also extend into 2025 if he remains sidelined next season.