Why the Texans’ Dead Cap Situation (Including Stefon Diggs) May Not Be as Bad as It Seems
- Feb 20
- 4 min read
After the Texans didn’t re-sign Stefon Diggs before the deadline, many fans were concerned about the dead cap implications. With $19.6 million in total dead cap for 2025—exactly $16,644,000 of that tied to Diggs—it’s understandable why this feels like a significant financial hit. But after digging into the numbers and factoring in the recently announced salary cap increase, the situation isn’t as dire as it initially seemed—even I was overweighting the impact at first.
Breaking Down the Diggs Situation
First, it's important to clarify something about Diggs’ contract: it wasn’t simply the Texans deciding not to re-sign him. For the team to spread his dead cap hit across future years, both sides needed to agree to a restructured deal. As expected, Diggs chose to test the free-agent market, exploring his options before committing to a new contract.
This doesn’t mean the Texans can’t re-sign him—they still can—but it does mean they can’t restructure his existing contract to lessen the 2025 dead cap hit. The dead cap was going to be incurred no matter what. Re-signing him before the deadline would have only allowed the Texans to spread the hit out over multiple years.
Breaking Down the Dead Cap
Here’s the full breakdown:
Texans 2025 Dead Cap: $19,676,224 (according to @TexansCap projection)
$16,644,000 from Stefon Diggs
$2,083,334 from Foley Fatukasi
Fatukasi’s situation was similar to Diggs: his contract voided because a new deal wasn’t agreed upon before the deadline. The Texans can still re-sign him, but the dead cap hit became official for 2025.
Despite these numbers, the Texans are still in a manageable position:
Texans 2024 Dead Cap (as of Feb 26, 2024): $13,778,652
Texans 2025 Dead Cap (Current - per @TexansCap): $19,676,224
This shows an increase of $5.9 million from the same time last year, largely driven by the Diggs and Fatukasi contracts. By comparing the numbers at this point in the offseason, we avoid factoring in cuts that occurred later in 2024 and those that may happen during the same timeframe in 2025.
Why This Comparison Matters
This approach gives a more accurate year-over-year comparison by reflecting the team’s dead cap situation before free agency and roster cuts. It shows that while the Texans’ dead cap has increased, it’s still manageable and lower than many teams around the league.
Important Note on 2024 Dead Cap Numbers
You might have noticed that I did not compare the 2025 dead cap to the final 2024 number of $41,631,992 listed on Spotrac.
That figure includes all the dead cap accrued from cuts, trades, and other moves made between March 2024 and February 2025.
Comparing the current 2025 number to the final 2024 number would be misleading because it would compare a snapshot to a full season’s worth of moves.
The goal is to compare where the Texans stand now relative to the same point last year, giving a true apples-to-apples comparison.
Where the Texans Stand Relative to the League
Currently, the Texans have $19,676,224 in dead cap for 2025, which is below the current NFL average of $30,564,033 for 2025 dead cap, according to Spotrac.
Why This Comparison is Relevant
This comparison is based on today’s numbers, which means it’s an accurate snapshot of where the Texans stand relative to the league before major offseason moves.
This average is likely to increase as teams make roster moves and use Post-June 1st cut designations, but it provides a baseline comparison of where the Texans are as of now.
The Texans are currently in a better position than the average NFL team, showing that their dead cap isn’t as damaging as it may initially appear.
Dead Cap as a Percentage of Total Cap
By calculating the dead cap as a percentage of the total salary cap for the Texans, we get:
2024 Dead Cap (as of Feb 26, 2024): 5.39% of the $255.4 million cap
2025 Dead Cap (Current):
7.09% with the Minimum 2025 Cap Projection ($277.5 million)
6.99% with the Maximum 2025 Cap Projection ($281.5 million)
What Does This Mean?
The percentage increase is not as drastic as it seems when considering the cap increase from 2024 to 2025.
Even though the total dead cap went up by $5.9 million, the percentage of total cap only increased by about 1.7%.
If the cap hits the maximum projection, the dead cap impact drops below 7%, showing that the cap increase is offsetting the dead cap more than initially expected.
This demonstrates that the increase in the overall salary cap is helping to offset the impact of the higher dead cap, justifying the decision to defer the dead cap hit to 2025 rather than incurring it in 2024.
Impact of NFL Salary Cap Increases
According to Dan Graziano, the NFL informed teams that the 2025 salary cap is projected to be between $277.5 million and $281.5 million, significantly higher than last year’s $255.4 million.
The cap will have increased by more than $53 million over the last two years, signaling a significant upward trend.
@TexansCap used the low end of this range, $277.5 million, indicating a conservative estimate that could increase if the actual cap is closer to $281.5 million.
This anticipated increase in the cap offsets the impact of the Texans’ dead cap, showing why the decision to defer the hit to 2025 was a strategic move.
Final Thoughts
After initially feeling uneasy about the Texans’ dead cap situation, I’ve come around to seeing the strategic value in how they’ve handled it. This isn’t a hasty, reactive financial hit—it's a calculated move designed to optimize future spending.
With a solid cap position heading into 2026 and beyond, the Texans are well-positioned to continue building around their young core.
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