Should the Steelers Trade or Extend T.J. Watt? The Big Pittsburgh Dilemma

By Jason Bolton June 29, 2025 14:11

The Pittsburgh Steelers find themselves at a crossroads with their star outside linebacker, T.J. Watt. Entering the final year of his four-year, $112 million extension signed in 2022, Watt’s contract situation has become a pressing issue for the franchise. With training camp looming and no new deal in place, the Steelers face a difficult choice: negotiate a lucrative extension to keep Watt in Pittsburgh or consider trading him to avoid a costly cap hit and potential holdout. This dilemma strikes at the heart of the Steelers’ future and their quest to remain competitive.

The Current Contract Situation

T.J. Watt, now 30, is set to earn a base salary of $21.05 million in 2025, carrying a cap hit of roughly $30.4 million. However, none of this salary is guaranteed for the upcoming season, giving Watt leverage in negotiations. His current deal, once the highest-paid defensive contract in the NFL, now ranks 10th among pass rushers, especially after Myles Garrett’s recent four-year, $160 million extension with the Browns reset the market.

Steelers GM Omar Khan has expressed a desire for Watt to be a “one-helmet” player, emphasizing the franchise’s hope that he will spend his entire career in Pittsburgh. Watt himself has voiced loyalty to the team, stating after the 2023 season, “I don’t want to play for anyone else.” Yet, the absence of a new deal and Watt’s decision to skip minicamp amid negotiations have raised concerns.

The Stakes for Pittsburgh

The Steelers currently have just under $19 million in salary cap space, which complicates their ability to offer Watt a contract that matches his market value potentially over $40 million annually, according to NFL insider James Palmer. The team’s cap situation is further strained by recent high-profile signings, including a $132 million deal for wide receiver Metcalf.

Coach Mike Tomlin has downplayed Watt’s absence during minicamp, focusing on the team’s culture and leadership. Meanwhile, veteran quarterback Aaron Rodgers expressed confidence that Watt would be signed before Week 1, calling him “another guy who’s a leader” on the team.

To Trade or Extend?

The Steelers face a classic NFL quandary. Extending Watt would secure a generational pass rusher but at a steep financial cost that could limit roster flexibility. Failure to reach an agreement risks Watt holding out again, as he did in 2021, potentially disrupting the team’s preparation.

Alternatively, trading Watt could yield valuable draft capital and salary relief but would leave a massive void on defense. Given Watt’s impact he led the league in sacks in 2022 and has been a perennial Pro Bowler and Defensive Player of the Year candidate replacing him would be a daunting task.

What Experts Are Saying

Analysts note the parallels between Watt and Garrett, whose contracts are similarly structured and whose statistics closely match. Palmer remarked, “He certainly has the right to pursue that [over $40 million per year].” Meanwhile, Steelers insider Gerry Dulac hinted that a deal before training camp is unlikely, suggesting a possible hold-in reminiscent of 2021.

The Steelers’ decision on T.J. Watt will define their defensive identity for years. Extending him means committing significant cap resources but retaining a cornerstone of their defense. Trading him offers financial flexibility but risks a defensive downgrade.

With training camp approaching and no deal yet, tension is mounting. Fans and analysts alike will watch closely as Pittsburgh navigates this high-stakes negotiation, hoping for a resolution that keeps Watt in black and gold while preserving the team’s competitive future.