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Texans adjust Stefon Diggs' contract after trade, clearing path for WR to be free agent in 2025

Stefon Diggs' move to Houston will come with an added bonus: another chance to cash in via free agency in 2025.

As part of their deal to acquire Diggs, the Texans are eliminating the final three years of the wide receiver's contract, NFL Network Insider Ian Rapoport reported on Thursday. The move adds four void years to Diggs' deal, while moving money originally guaranteed for 2025 into 2024, effectively giving Diggs a one-year, $22.52 million contract, per Rapoport.

Diggs will become an unrestricted free agent in 2025, meaning his first season with the Texans could also be his last. Diggs could, of course, re-sign with Houston in 2025, but he won't be tied to an extension he originally signed in Buffalo.

One can view it as a good-faith move on the part of the Texans. Knowing he'll be able to capitalize on his earning power as soon as next year, Diggs will have additional incentive to perform at a high level in his first season spent sharing the field with sensational youngster C.J. Stroud. He can also sign a new extension with the Texans, should their partnership work out well enough to convince both parties to continue.

Diggs gobbled up targets in his four years with the Bills, leading the NFL in receiving yards from 2020-2023 while finishing in the top four in receptions and receiving touchdowns. His usage tapered off following Buffalo's change at offensive coordinator during the 2023 season, though, and the Bills eventually decided it was in their best interest to part with him and eat a significant dead cap hit in 2024 instead of proceeding with him as a focal point of their offense.

Houston swooped in to capitalize, sending a 2025 second-round pick in exchange for Diggs and two Day 3 picks -- a 2024 sixth-rounder (No. 189) and 2025 fifth-rounder -- in an attempt to immediately improve following a surprising run to an AFC South title and playoff victory in the 2023 season.

The Texans will give Diggs a trial season with the hopes he was worth the pick sent to Buffalo. If not, after adjusting Diggs' deal this week, they're not committed to him beyond 2024.

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