How the Texans Can Create Cap Space in 2026: Restructures & Extensions Explained

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Before we dive in — quick disclaimer.

This is my understanding of how restructures, extensions, and cap mechanics work based on years of studying contracts, OverTheCap data, and league trends. I’m always learning like everyone else, so if there’s nuance I miss or something worth correcting, feel free to point it out. The goal here is to share what I’ve learned and make it digestible for Texans fans.

Now let’s get into it.

Context: What Houston Did Last Year

Last offseason, the Texans were not passive.

They reworked Christian Kirk’s deal after trading for him. They restructured contracts for Azeez Al-Shaair, Nico Collins, Tytus Howard, Ka’imi Fairbairn, Denico Autry, and Dalton Schultz. They adjusted C.J. Gardner-Johnson after acquiring him.

They also executed meaningful extensions for Derek Stingley Jr., Danielle Hunter, Davis Mills, and Jalen Pitre — some of which created significant immediate cap savings.

That wasn’t random.

It was calculated cap management inside a growing contention window.

Now the question becomes: how can Houston create space again in 2026?

For this article, we’re focusing strictly on restructures and extensions. I’ll break down cut candidates separately.

Where the Texans Actually Stand

According to OverTheCap (www.overthecap.com):

• Texans Effective Cap Space: – $10.5M

• Possible Space via Simple Restructures: $80.6M

• Possible Space via Maximum Restructures: $117.9M

  
  

Important clarification:

Effective cap space is not just raw cap space. It accounts for draft class costs and minimum roster charges. So Houston isn’t in crisis — but they’re operating near the line.

The key takeaway:

Houston has leverage.

They are not cap-strapped.

They are cap-flexible.

What Is a Restructure?

From OverTheCap:

Restructuring converts scheduled payments such as base salary or roster bonuses into signing bonuses that are prorated across the contract (up to five years).

There are two types.

Simple Restructure

• Converts base salary to signing bonus

• Prorates over remaining contract years

• No new years added

• Usually can be executed unilaterally by the team

  
  

Most modern contracts include automatic conversion language. That means teams often do NOT need player approval to execute simple restructures.

Key point:

The player does not lose money.

They rarely receive money sooner.

The total contract value does not change.

This is accounting — not sacrifice.

However:

When salary is converted to bonus, it becomes guaranteed. That increases future dead money if the player is cut.

So restructures are less about player generosity and more about team commitment.

Typically, you do this for players you plan to keep.

Maximum Restructure

A maximum restructure creates even more cap space by:

• Adding real contract years (extension), or

• Adding void years (placeholder years used only for proration)

  
  

Because this alters the contract structure, player consent is typically required.

Do players usually agree?

In most cases, yes — because:

• They are not losing money

• They often get guaranteed money accelerated

• Increased prorated money increases their dead-money protection

  
  

But technically, consent is required when new years or void years are involved.

Restructures vs Extensions — Not The Same Thing

While restructures push money into future years, extensions operate differently.

An extension:

• Spreads cap charges across additional real years

• Often includes new guarantees

• Signals long-term belief in the player

  
  

OverTheCap’s “maximum restructure” projections include savings generated through potential extensions — not just salary conversions.

That means Houston’s theoretical $117.9M ceiling assumes some players would sign longer-term deals.

This isn’t just cap maneuvering.

It’s roster philosophy.

The Important Distinction

Restructures push money forward.

Extensions commit long term.

Void years borrow from the future.

Each one signals something about how the Texans view their competitive window.

Why This Matters for 2026

If Houston used every simple restructure option available, they could theoretically swing from negative effective cap to roughly $80M in space.

If they used maximum restructures, that ceiling jumps near $118M.

That doesn’t mean they will — or should — use all of it.

It simply shows how much flexibility they have.

And that flexibility is the mark of a stable contender.

Where Houston Can Create Major Savings

We're almost ready to dive into the most notable contracts where Houston can create significant 2026 cap flexibility — either through restructures or extensions — and I’ll weigh in on what I think they should do versus what they might do.

Before diving into each individual player, a quick note on framework.

In this section, I’m evaluating which move makes the most sense if cap space is needed — restructure or extension. In some cases, I believe an extension makes sense regardless of immediate cap pressure because of long-term architectural value.

I’m also aware that I may lean toward extensions more often than some would. That doesn’t mean I think every player discussed will be extended — or even should be extended in combination with all the others.

This is about identifying viable levers and philosophical direction, not predicting that every option gets pulled.

Not all of these players can be extended. Not all should be.

But I do believe Houston is more willing than most fans expect to layer multiple major deals.

Nick Caserio hinted at this shortly after the season ended — that there are ways to structure contracts to pay multiple cornerstone players within the same window.

That matters.

This isn’t a rebuild roster trying to survive the cap.

This is a contender managing a window.

With that lens in mind, here’s how I’d approach each situation.

Danielle Hunter

Restructure savings: $15,975,000

Extension savings: $17,040,000

Danielle Hunter signed a one-year extension last spring worth $35.6 million in new money, bringing the total to $55.1 million over two years, with $54.1 million fully guaranteed, including a $20 million signing bonus. At the time, he became the second-highest paid defensive end in football.

Hunter responded with another outstanding season. He was snubbed from the Pro Bowl but earned Second-Team All-Pro honors — a more meaningful indicator of elite performance. Alongside Will Anderson Jr., he forms the nucleus of how this Texans defense is built. The pass rush starts there.

Because of that, this feels less like a restructure candidate and more like an extension candidate.

Extending Hunter for another one to two years at a similar or slightly higher APY would:

• Secure an elite, foundational player

• Create slightly more cap savings than a simple restructure

• Lock in stability for a defense built around pressure

Hunter is a Houston native and has indicated he’s happy playing at home. His performance has not dipped. Many elite edge rushers have sustained high-level play well into their early to mid 30s. There’s no reason to believe Hunter cannot maintain strong production for at least three more seasons, which would buy Houston time to develop or acquire his eventual replacement — something far easier said than done.

If I had to lean one way, extension makes more strategic sense than restructure. It’s not just cap maneuvering — it’s reinforcing the core of the roster.

Tytus Howard

Restructure savings: $12,150,000

Extension savings: $12,960,000

Tytus Howard has quietly been one of the most valuable pieces on Houston’s offensive line because of his versatility. He has played left tackle, right tackle, right guard, and left guard — everything except center. That flexibility has given the Texans midseason injury insurance and draft/free agency flexibility.

However, this is where philosophy becomes important.

The extension savings are only marginally higher than a restructure — roughly $800K difference. Partly because of that, a restructure feels like the more shrewd move.

Why?

Houston appears to be actively getting younger along the offensive line. They drafted Blake Fisher (still developing) and Aireontae Ersery. They moved on from Laremy Tunsil last year, clearing cap space and, depending on who you ask, potentially addressing culture concerns.

Howard emerged as the leader of that offensive line after Tunsil’s departure, and that leadership matters. But his APY on an extension may be higher than Houston ultimately wants to commit long term, especially if they intend to reshape the tackle/guard room over the next two seasons.

A restructure preserves flexibility.

An extension signals commitment.

And then there’s the wildcard: Nick Caserio.

The Tunsil trade last year proves Houston is willing to make bold moves if the value aligns. I’m not saying they should trade Howard — or that they will — but we cannot rule it out given Caserio’s track record. Depending on pre-June 1 versus post-June 1 trade mechanics, the savings may or may not justify the move anyway.

My lean: restructure is more likely than extension. It creates meaningful space without overcommitting future years.

Nico Collins

Restructure Savings: $14,276,250

Extension Savings: $15,228,000

Nico was already restructured last year, and he’s currently under contract through 2027.

That matters.

The Texans extended him early in 2024, adding three years to what was originally a rookie deal. Now we’re in that aggressive — but not abnormal — territory where a team considers extending again with two years left.

For mid-tier players? Rare.

For foundational players at premium positions? Not uncommon.

The question isn’t “can you?” It’s “should you?”

The Cap Mechanics

A restructure would simply convert base salary into signing bonus and spread it across the remaining years. It creates immediate relief, but it stacks proration into fewer seasons. Dead money accelerates faster. Cap spikes eventually come.

An extension is completely different.

An extension:

• Adds real years

• Creates new proration runway (up to five total years from when bonus is given)

• Allows you to redesign structure

• Lets you smooth existing cap hits

• Lets you control guarantee timing

• Avoids balloon years

  
  

You’re not replacing the old deal.

You’re layering on top of it.

That’s an important distinction.

Extending Nico would not erase the value of the early extension. Houston already benefited from that discount window. The value from 2024–2026 still existed. You’re simply locking in the next window before leverage shifts.

Restructure is a short-term lever.

Extension is long-term architecture.

Why I Lean Extension

If Nico is what the Texans believe he is — a foundational WR1 in his prime — extension makes more sense philosophically.

You don’t repeatedly restructure cornerstone players without adding real years.

You may likely restructure them once early to create flexibility — Houston already did that with Nico.

But if a player has proven he’s foundational, the cleaner long-term move is extension, not stacking more bonus onto shrinking years.

Repeated restructures compress the runway.

Extensions widen it.

Nico isn’t just production. He’s size, catch radius, physicality, downfield ability, and a rare non-diva mentality for a star receiver. He fits the culture. He fits the offense. He fits Stroud.

You don’t replace someone like that from a height/weight/skill standpoint — especially when he’s team-first — if you don’t have to.

Yes, Houston drafted Jayden Higgins — similar body type, similar profile. Some see him as an eventual replacement.

I see more tandem than replacement.

Higgins gives insurance and flexibility. It doesn’t mean it’s time to move off Nico.

Drafting depth at premium positions is smart roster building — not succession planning.

The Stroud / Anderson Factor

This is where timing becomes critical.

C.J. Stroud and Will Anderson Jr. are both eligible for extensions this offseason — and I believe Houston gets both done (again, seperate artciles).

If that happens, the Texans are layering two franchise-level deals onto the books immediately.

If you then wait on Nico, you risk negotiating his third contract:

• After Stroud is extended

• After Anderson is extended

• With the WR market likely even higher

• With Nico holding maximum leverage

  
  

You don’t want three cornerstone negotiations colliding in the same leverage window.

That’s avoidable chaos.

Extending Nico now allows Houston to:

• Lock in cost certainty

• Stagger cap ramps

• Align cap planning with Stroud’s prime

• Avoid negotiating during peak WR market inflation

  
  

Contenders don’t just pay stars — they sequence them.

Final Nico Take

Could Houston restructure Nico again and push cap forward? Yes.

Should they?

In my view, if you believe he’s foundational, extension is the cleaner path.

This isn’t about squeezing 2026 relief. It’s about building financial architecture around Stroud’s championship window.

Restructure buys time.

Extension builds runway.

And if Houston is truly operating like a stable contender now, runway matters more than leverage plays.

I’ll break down a proposed extension structure in a separate piece — but philosophically, this is the direction I believe makes the most sense for Nico Collins and the Houston Texans.

Derek Stingley Jr.

Restructure Savings: $15,285,000

Extension Savings: $16,304,000

Derek Stingley Jr. is a two-time First Team All-Pro and the true cornerstone of this franchise — pun fully intended.

But from a cap strategy standpoint, this one is straightforward.

He is just one year removed from signing his extension.

That makes him a very likely restructure candidate.

The savings are significant, and the difference between restructure and extension savings is marginal. There’s no need to redesign the contract structure again this soon after committing to it.

Houston already made the long-term statement.

They already layered guarantees.They already built the architecture.

Now it’s about optimization.

A simple restructure:

• Creates major cap space

• Preserves the existing extension structure

• Avoids unnecessary re-opening of a fresh deal

• Maintains long-term control

Repeated extensions in back-to-back years can unnecessarily escalate guarantees and stack bonus proration too aggressively. There’s no reason to do that here.

Stingley’s place as a foundational piece is secure.

This is where you use the lever — not redesign the building.

And philosophically, this mirrors what Houston did with Nico last year: extend early, then restructure the following season to create flexibility.

That sequencing makes sense again here.

Dalton Schultz

Restructure Savings: $7,275,000

Extension Savings: $7,760,000

This one is interesting.

Schultz has one year left on his contract, and the savings between restructure and extension are nearly identical. That means this decision isn’t really about cap mechanics.

It’s about belief.

Year 1 in Houston was strong.

Year 2 felt underwhelming.

But context matters.

It later became clear he was playing through injuries. When healthier in 2025 — and operating in Nick Caley’s new scheme built around gap runs and route leverage freedom — Schultz bounced back. He became C.J. Stroud’s leading receiver in terms of receptions and a true security blanket.

That matters in this offense.

Stroud thrives with tight ends who can adjust routes based on coverage leverage. Schultz understands spacing, timing, and how to find soft spots. When Nico was out or limited, Schultz was often the steady presence.

However…

He ended the season with a calf injury against New England.

And there’s the broader roster question.

Houston still lacks a true game-changing tight end who can both block at a high level and threaten defenses vertically. Schultz is a reliable receiving tight end. He is not a dominant in-line presence who shifts defensive structure.

That distinction is important.

Because if you extend him now, you’re essentially committing to him as your TE1 for the foreseeable future.

If you restructure, you preserve flexibility.

My lean: restructure.

Create the cap space.

Keep him for 2026.

Begin actively searching for the next difference-maker — whether in free agency or the draft this year or next.

Schultz can bridge the gap.

But Houston still needs a true two-way tight end in the future who changes how defenses align — someone who blocks in gap schemes and wins in space.

This feels like a bridge year decision, not a long-term architectural commitment.

Restructure fits that philosophy.

Azeez Al-Shaair

Restructure Savings: $7,275,000

Extension Savings: $7,760,000

Just like Schultz, the savings between restructure and extension are negligible.

So this isn’t about cap mechanics.

It’s about commitment.

For me, this one is easy: extend.

Azeez isn’t just a linebacker on this roster. He is the captain of the defense and arguably the emotional tone-setter for the entire team. He embodies the SWARM mentality DeMeco Ryans preaches.

He’s the heart and soul of this defense.

When you watch Houston play, the intensity starts with him. The communication, the alignment discipline, the physicality — that runs through Azeez.

And that matters more than spreadsheets.

From a football standpoint:

• He fits DeMeco’s scheme perfectly

• He can play downhill and in space• He’s instinctive in run fits

• He brings leadership you can’t draft easily

Unlike Schultz, this doesn’t feel like a bridge year decision.

This feels like a foundational culture decision.

If Houston views him the way the locker room clearly does, this is the kind of player you reward and lock in.

My initial instinct is that he could land somewhere around the $15M APY range in a new deal with Houston — and I’ll break that down more in a separate, deeper contract analysis piece.

But philosophically?

This isn’t a restructure candidate.

This is an extension candidate.

Restructure keeps flexibility.

Extension reinforces identity.

For a defensive captain who defines the temperament of your roster, identity wins.

Jalen Pitre

Restructure Savings: $5,190,000

Extension Savings: $6,228,000

Just like Stingley, Pitre was extended last year.

That’s the key.

Houston already made the long-term commitment. The structure is fresh. The guarantees are layered. The architecture is built.

So this becomes simple.

If cap space is needed, restructure makes sense.

The savings difference between restructure and extension is minimal. There’s no real strategic advantage in reopening a brand-new extension just to squeeze out an extra million.

You don’t need to redesign a contract you just redesigned.

Pitre is an important piece of this defense — versatile, physical, and scheme-flexible. DeMeco uses him in multiple roles, and his value isn’t just box score production. He allows disguise, rotation, and matchup flexibility.

But this isn’t a philosophical debate like Nico or Azeez.

This is a mechanics decision.

If Houston wants space:

Use the restructure lever.

Preserve the extension structure.

Avoid unnecessary guarantee layering.

Clean. Efficient. Disciplined.

Ka’imi Fairbairn

Restructure Savings: $2,272,500

Extension Savings: $2,424,000

Ka’imi was already restructured last year and now has one year left on his deal.

The savings between restructure and extension are negligible. So this isn’t really about squeezing cap dollars.

It’s about belief.

Under a defensive-minded, field-position-driven head coach like DeMeco Ryans, having an elite kicker isn’t a luxury — it’s a weapon. DeMeco is comfortable taking points. He trusts his defense. That makes reliability at kicker critical.

Fairbairn just delivered a record-setting season and has consistently been dependable in high-leverage moments. In playoff football, that matters.

Most teams let specialist contracts play out before extending. That’s typical around the league.

But Houston isn’t building typically.

Fairbairn is elite at his position. He fits the temperament of this team. And you already restructured him once — meaning you’ve shown comfort pushing money forward.

To me, extension makes more sense here.

Lock in stability.

Reward performance.

Preserve cost certainty before the market shifts again.

Could Houston let him play out the deal and reassess? Absolutely. That’s always an option with specialists.

But if you believe in continuity during a championship window, extending your elite kicker — especially in a defense-first system — feels aligned with how this roster is constructed.

This isn’t a cap decision.

It’s a trust decision.

And I lean extend.

Henry To’oTo’o

Extension Savings: $1,968,000

Henry To’oTo’o is entering the final year of his rookie deal in 2026, making him a potential early extension candidate.

The cap savings wouldn’t be massive — just under $2 million — so this isn’t a move you make purely for financial reasons. It would be about belief in long-term fit.

DeMeco Ryans and this staff clearly value him. He’s developed within the system, understands the communication responsibilities at linebacker, and plays with discipline in run fits. He’s been a steady presence and has improved year over year.

But this is where projection matters.

Is Henry a long-term foundational linebacker?Or is he a solid, scheme-reliable piece that can be replaced if necessary?

I’m fairly indifferent here.

There’s a case to extend him early at a reasonable number and lock in stability next to Azeez. There’s also a case to let him play out the rookie deal and reassess after 2026.

My lean: let him play it out.

Linebacker is not typically a premium-money position unless you’re talking elite tier. Houston could:

• Re-sign him after the season

• Draft competition this year

• Address it in free agency or the draft next offseason

Letting him play through 2026 preserves flexibility and keeps leverage on Houston’s side.

If he takes another jump, you pay him.If not, you pivot.

That feels like the disciplined approach here.

Davis Mills

Extension Savings: $3,948,000

Restructure Savings: $0

Mills signed a one-year extension last year, so there’s no restructure option available. The only cap lever here would be another extension.

Could it happen again?

Yes — but this one depends less on cap mechanics and more on leverage and long-term roster planning.

Mills stepped in last season and went 3-0 filling in for C.J. Stroud. He proved something important: this team can still compete if Stroud misses time. That matters in a roster built to contend right now.

Quality backup quarterbacks are not easy to find.

And when you have one who:

• Knows the system

• Has starting experience

• Has shown he can win in your building

• Doesn’t disrupt the locker room dynamic

That’s real value.

But there’s another layer.

Mills may want to test the market.

After stepping in successfully, he could pursue a starting opportunity or a stronger backup deal elsewhere in 2027. Agreeing to another short-term extension would likely mean choosing stability over open-market leverage.

There’s also the trade discussion.

Trading Mills would result in:

• $1,675,000 dead cap

• $6,450,000 in savings

  
  

That’s meaningful space.

But would Houston move off a proven backup in the middle of a championship window?

I don’t see it — unless it’s an aggressive offer. Something like a second-round pick, or maybe an early third, would force a conversation. Anything less likely isn’t worth the insurance he provides.

And this is where Graham Mertz enters the picture.

Houston drafted Mertz late last year, and he’s shown some developmental upside. He’s not ready to be handed the keys today, but the Texans clearly see something there.

Mertz gives Houston flexibility:

• If Mills were traded (unlikely in my view)

• If Mills plays out his deal and walks in 2027

• Or if Houston simply wants a cheaper full-time backup

That succession plan softens the risk.

Personally, I lean toward Houston keeping Mills and letting the contract play out rather than forcing another extension. In a championship window, quarterback insurance matters.

Stroud is the franchise.

But having a capable No. 2 behind him is part of protecting the window.

Houston just saw how valuable that can be.

C.J. Stroud

Extension Savings: $3,641,736

Will Anderson Jr.

Extension Savings: $3,525,399

These are not cap decisions.

These are franchise decisions.

Both Stroud and Anderson are eligible for extensions this offseason, and I firmly believe the Texans will — and should — get both done.

The cap savings are modest relative to some of the veteran contracts discussed earlier. That’s not the point.

The point is long-term alignment.

Stroud is the face of the franchise. He’s the engine of the offense and the reason Houston’s championship window is open. Waiting only increases leverage on his side and invites unnecessary market escalation.

Will Anderson Jr. is the defensive pillar. The pass rush identity of this team is built around him. Elite edge rushers are premium assets, and cost certainty at that position matters.

Extending both now:

• Locks in cornerstone talent

• Controls long-term cap sequencing

• Avoids stacking negotiations later

• Aligns contracts with the competitive window

These are much deeper topics that deserve full breakdowns on structure, timing, and market comparisons — and I’ll dive into both separately.

But philosophically?

This isn’t a debate for me.

If Houston is serious about sustaining this window, both deals get done.

Everything else in this article revolves around that reality.

Final Thoughts: This Is About Window Management

None of these decisions happen in isolation.

Every restructure pushes money forward.

Every extension signals belief.

Every non-move preserves flexibility.

The Texans are no longer building toward a window.

They’re inside one.

That changes how you think about cap strategy.

This isn’t about squeezing space just to survive 2026. It’s about sequencing contracts around Stroud, Anderson, and the core nucleus in a way that avoids future resets.

Some players feel like architecture decisions.Some feel like leverage decisions.Some feel like bridge decisions.

And how Houston balances those tiers will tell us everything about how aggressive they plan to be in sustaining this run.

Next, I’ll break down potential cap savings via cut candidates — which is an entirely different philosophical conversation.

Because restructures push money forward.

Cuts create space immediately.

And how the Texans choose between those two paths will define the next phase of this window.