Texans Forfeiting Fifth-Round Pick, NFL Fining Them $175K For Cap Violation

Adam Schefter reports that the NFL will take a fifth-round pick from the Texans and fine the team $175,000 for what they believe was a salary-cap violation.

According to Schefter, the Texans claim this was an accounting error that dates back Deshaun Watson’s training during COVID.

Jonathan Jones reports that the “alternative athletic facility” was the Houstonian, the luxury hotel and club the Texans helped provide membership.

Houston believes the “accounting error” gave them no salary-cap advantage and they were simply paying $26,000 for Watson to train at a local facility while theirs was closed during COVID.

The NFL has confirmed the news and issued the following statement:

​”The Houston Texans will forfeit their original fifth-round selection in the 2023 NFL Draft and have been fined $175,000 for a salary cap reporting violation.

​”Pursuant to the salary cap requirements in the Collective Bargaining Agreement, clubs must report any player compensation or benefit.

​”Following a review, the NFL determined that the club provided then Texans’ quarterback Deshaun Watson with undisclosed compensation in the form of a membership at an alternative athletic facility in 2020.​”

The Texans have responded with a statement of their own: 

“During the 2020 league year and while its facilities were closed because of the COVID-19 pandemic, the club absorbed $26,777 in costs for player benefits for the use of alternate athletic facilities, which it understands should have been charged instead to player salaries. The club has fully cooperated with the league in its investigation of these matters and maintains that it had no intention to circumvent any salary cap rules or gain any sort of competitive advantage. While we disagree with the league’s ruling, we will accept the imposed discipline and move forward.”

The NFL pays close attention to teams for potentially skirting salary cap rules by compensating players in others ways. However, given the amount in question, it’s unlikely this would have had a big impact on the team in terms of their salary cap.