In light of the significant, season-ending injuries for highly paid NFL quarterbacks, this has become one of the big questions waiting in the aftermath of a catastrophe: How much of the quarterback’s contract was insured?
After the type of injury has been identified, after the player’s physical and mental well-being has been discussed, and after taking a step back and understanding the path forward, the reality of the financial implications sets in. And for the Cleveland Browns and Deshaun Watson, the impact of those implications — especially as it relates to the insurance covering his 2024 salary — could be enormous.
According to two sources familiar with Watson’s contract, at least part of Watson’s remaining salary for 2024 is indeed covered by an insurance policy. Exactly how much will be covered for a potential season-ending Achilles injury — and how much of that coverage could translate into a salary cut for 2025 — is not yet publicly known, largely because only the Browns and their chosen insurer knowing 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 are willing to pay.
“The CAP credit [in 2025] will reflect the payout,” a 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 topic of insurance coverage for season-ending injuries was thrust into the spotlight last season, when it was reported that the New York Jets had failed to pay any of the $37 million in guaranteed salary owed to Aaron Rodgers was to protect. That misstep proved significant after Rodgers tore his Achilles tendon just minutes into the Jets’ season opener, forcing him to miss 16 games. If the Jets had purchased a policy to cover that injury, some 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 payments can be made to teams for significant player injuries in the following season are credited to the salary cap.
If the Jets had been able to secure Rodgers’ entire $37 million for the 2023 season, in theory a significant portion of that money could have been credited toward the team’s 2024 cap hit. But the Jets ultimately passed on the policy, which likely would have had a premium of millions depending on how much of Rodgers’ salary was insured and what injuries were covered.
On Monday, ESPN reported that Watson essentially ruptured his Achilles tendon in the Browns’ 21-14 loss to the Cincinnati Bengals and is out for the season.
As it stands now, Watson’s base salaries in 2025 and 2026 are $46 million per season. But due to Cleveland’s restructuring of his contract and the addition of an empty year (to create cap space in 2023 and 2024), his cap cost is much higher. If he were traded or released this offseason, the total amount that would be accelerated toward the Browns’ 2025 cap hit would be an unfathomable $172.7 million. That makes Watson virtually untouchable and untradable unless a team is willing to absorb the remaining $92 million in guaranteed salary he is owed in 2025 and 2026.
For now, the only waiver the Browns have in sight will be tied to the insurance policy taken out on his 2024 salary – protecting the remainder of the games he could miss this season – as well as part of 2025 – if he will miss the start of next season while he recovers.
