Update: Browns Actually Received Closer To $25M In Cap Relief From Deshaun Watson Insurance

Pro Football Talk has corrected a previous report about how much salary cap relief the Browns received from an insurance policy they took out on QB Deshaun Watson‘s mega-contract. 

PFT initially reported the figure was almost $89 million. After consulting with a source who used to work in salary cap logistics for a team to interpret the NFLPA records they received, PFT is now reporting the number is much lower, closer to $25 million. 

Over The Cap notes the figure could also be as low as $9 million and some change right now based on the records PFT reported, although that might not be all of the insurance relief.

Citing another source, PFT notes that while the $25 million figure seems low, the Browns may not have purchased the maximum insurance permitted. The policy may also have had other provisions limiting the payout, as insurance companies hate paying out money just as much regardless of whether they’re dealing with the NFL or an average Joe. 

The Browns have declined comment or explanation, per PFT. 

Teams can take out insurance policies for loss of value on major player contracts, and the practice has become increasingly common by a few different organizations in the last several years. The premiums are pricey but not factored into the salary cap, so franchises willing to spend the extra money can benefit in the long run. 

Watson, 30, was taken in the first round of the 2017 NFL draft out of Clemson by the Texans. He signed a four-year, $13.854 million rookie deal with the Texans that included a fifth-year option of around $17.3 million for the 2021 season.

The Texans later signed Watson to a four-year extension worth as much as $177 million heading into the 2020 season, paying him $39 million a year. However, Watson requested a trade after the season, then sat out the entire 2021 season while navigating more than two dozen lawsuits for sexual misconduct. He was later suspended for 11 games. 

Watson was traded to the Browns for significant draft compensation in 2022 and signed a five-year, $230 million, fully guaranteed contract as part of the trade. The deal runs through 2026 and includes base salaries of $46 million in each of the final two seasons. 

In 2024, Watson appeared in seven games for the Browns and completed 63.4 percent of his pass attempts for 1,148 yards, five touchdowns and three interceptions. He added 31 carries for 148 yards and another score.