Nico Collins contract details, grade: Texans give stud WR much-deserved payday

The Houston Texans were arguably the most surprising success story of the 2023 NFL season in their first year of the DeMeco Ryans/C.J. Stroud era.

After posting a 10-7 regular season record en route to an AFC Divisional Round appearance, the Texans are no longer a plucky underdog. They have transformed from prey to predators seemingly overnight. One of their main contributors was wide receiver Nico Collins, who experienced a third-year breakout campaign.

Collins caught 80 passes for 1,297 yards and eight touchdowns this past season in 15 games. He ranked third in the league in yards per target (11.9), seventh in yards per reception (16.2) and ninth in yards after the catch (549). On Tuesday, Houston rewarded him with a massive payday for his efforts and continued ascension.

Nico Collins contract details: Texans give stud WR much-deserved payday

Tom Pelissero of NFL Network reported that Collins and the Texans have agreed to a three-year, $72 million contract extension.

The 2021 third-round pick was entering the final year of his rookie deal but is now officially under contract through the 2027 season. Collins' $24.25 million average annual salary (AAV) is currently the seventh highest-paid player at his position, narrowly edging out Pro Bowl teammate Stefon Diggs.

Did Houston get it right by re-signing Collins? Let's discuss.

Nico Collins contract grade: Texans beat Cowboys and Vikings to the punch

Dallas Cowboys All-Pro receiver CeeDee Lamb and Minnesota Vikings superstar wideout Justin Jefferson are waiting for the other to blink amid their respective contract holdouts. Both players remain patient, hoping that the one signs first so the other can reset the positional market value shortly after. Meanwhile, the Texans used this as an opportune time to secure Collins before his price likely increased, assuming either finalized a deal before him.

Collins may not be the seventh-best receiver in football, but he doesn't have to be. He will continue tumbling down the AAV ranks when other players like Lamb and Jefferson eventually leapfrog him. His deal will age well with time, especially as the salary cap continues rising yearly.

Moreover, the Texans now ensure their dynamic young receiving tandem consisting of Collins and 2023 third-round selection Tank Dell is under team control for multiple seasons. Between them and Diggs, Houston boasts what may be the best receiving corps in the league.

Texans contract grade: A-. A 6-foot-4, 215-pound physical specimen, Collins possesses the ideal frame to be a productive X receiver in the NFL for a long time. He is only 25 years old and will have ample time to continue developing his budding connection with Stroud.

Houston made out nicely here. Collins could prove to be a bargain in due time.