In the face of significant, season-ending injuries for highly paid NFL quarterbacks, it has become one of the sizable questions waiting in the wake of catastrophe: How much of the quarterback’s contract was insured?
After determining the type of injury, after addressing the physical and mental well-being of the player, and after stepping back and understanding the path forward, the reality of financial implications kicks in. And for the Cleveland Browns and Deshaun Watson, the impact of those implications — most specifically tied to the insurance covering his 2024 salary — could be immense.
According to two sources familiar with Watson’s contract, at least some portion of Watson’s remaining 2024 salary is indeed covered by an insurance policy. Precisely how much is covered for a potential season-ending Achilles injury — and how much of that coverage could be rolled into 2025 salary-cap relief — is not yet known publicly, largely because only the Browns and their chosen insurer know the precise language and payouts of the insurance policy. Not all injuries are covered (although Achilles injuries are considered fairly standard) and the amount of coverage varies for teams based on the premiums they choose to pay.
“The cap credit [in 2025] will be the reflection of the payout,” one source told Yahoo Sports. “Or whatever the Browns reveal — if they say anything at all. I doubt they will make that public. Most teams don’t like to talk about insurance policies.”
The subject of insurance covering for season-ending injuries was thrust into the spotlight last season, when it was reported that the New York Jets had failed to protect any of the $37 million in guaranteed salary owed to Aaron Rodgers. That misstep proved significant after Rodgers tore his Achilles just minutes into the Jets’ season-opener, causing him to miss 16 games. Had the Jets purchased a policy to cover that injury, a portion of that $37 million in guaranteed money could have been added to the team’s 2024 salary cap. As part of the NFL’s CBA with the players union, insurance payouts to teams for significant player injuries can be credited onto the salary cap in the ensuing season.
In theory, if the Jets had been able to ensure Rodgers’ full $37 million for the 2023 season, a significant portion of that money could have been credited toward the team’s 2024 cap. But the Jets ultimately passed on the policy, which likely would have had a premium in the millions depending on how much of Rodgers’ salary was insured and what injuries were covered.
As of Sunday night, the Browns still had not declared the extent of Watson’s injury, although video appeared to show an Achilles rupture. Browns head coach Kevin Stefanski confirmed that it was an Achilles injury and said there was fear that it would be season-ending.
“I think let’s get the test to confirm, but that’s what it looks like,” Stefanski said, following the Browns’ 21-14 loss to the Cincinnati Bengals.
As it stands, Watson’s base salaries in 2025 and 2026 total $46 million per season. But due to Cleveland’s restructuring of his contract and the addition of a void year (to create cap space in 2023 and 2024), his cap charges are much higher. If he were to be traded or released this offseason, the total amount that would be accelerated onto the Browns’ 2025 cap would be an unfathomable $172.7 million. That renders Watson virtually un-cuttable and un-tradeable, unless a team was willing to take on the remaining $92 million in guaranteed salary he’s owed in 2025 and 2026.
For now, the only cap relief the Browns have in sight will be tied to the insurance policy that was taken out on his salary in 2024 — protecting the remainder of games he could miss this season — and also some portion of 2025 — if he misses the beginning of next season while recovering.