Once again, the Pittsburgh Steelers are entering an offseason with significant questions at the quarterback position. While the team’s decisions on the offensive side of the ball will dominate headlines, the Steelers may also be heading towards a contractual conflict with the best player on their roster. Steelers outside linebacker T.J. Watt, the most prolific pass rusher in the franchise’s decorated history, is entering the final season of the four-year contract extension he signed in 2021.
The Steelers are projected to have approximately $55.7 million in salary cap space this offseason, per Spotrac. Although that ranks as the ninth-highest cap space in the league, Pittsburgh doesn't have a starting quarterback on their roster. That figure could shrink once they sign a player to lead their offense.
Watt currently carries a team-high $30.4 million salary cap hit, and the best way to lower that figure would be to sign him to a multi-year extension. Although an extension would be beneficial for both involved parties, the contract negotiations could still prove to be difficult.
Steelers could be heading towards contract dispute with T.J. Watt
Watt’s last contract didn’t get finalized until the day before the regular season began, and ESPN’s Dan Graziano noted that the Steelers could be facing another round of contentious negotiations.
Watt’s previous deal earned him an average annual salary of $28 million, which made him the highest-paid defensive player in the league at the time. In 2025, Watt’s annual salary now ranks fifth among all defensive players.
San Francisco 49ers defensive end Nick Bosa currently leads the market with $34 million per year, but Cleveland Browns defensive end Myles Garrett and Dallas Cowboys linebacker Micah Parsons will look to top that figure this offseason. Watt’s price tag could prove to be costly as the market for edge rushers continues to rise.
Although Watt’s production warrants a market-setting contract extension, he will be 31 years old in 2025. He hasn’t shown signs of slowing down yet, but the Steelers may have some concerns about making a long-term commitment while paying over $30 million annually.
Watt was named the 2021 NFL Defensive Player of the Year after tying Michael Strahan’s single-season record of 22.5 sacks. The perennial All-Pro pass rusher led the league with 19 sacks in 2023 and finished with 11.5 sacks in 2024. Despite his best efforts, Watt hasn’t experienced a single playoff victory in his eight-year career. The Steelers have lost six consecutive playoff games since drafting the pass rusher. Pittsburgh’s last playoff win came in a divisional-round matchup against the Kansas City Chiefs following the 2016 season.
The Steelers are well-known for winning six Super Bowl championships, tied for most among all NFL teams. As Pittsburgh continues to struggle, those six Lombardi Trophies are beginning to lose some of their luster. Since the Steelers last won a playoff game, Tom Brady and Patrick Mahomes have combined for six Super Bowl titles, tying Pittsburgh’s franchise record. Both of them trounced the Steelers in the playoffs during those championship runs.