The Buffalo Bills, seeking to reshape their roster, made a bold decision—trading star wide receiver Stephon Diggs to the Houston Texans. But as the dust settles, the Bills face a hefty bill—a staggering $31 million in dead cap. Meanwhile, the Texans emerge as the unexpected victors.
As highlighted by NFL Rumors on Twitter, Buffalo will be responsible for a staggering $31 million dead cap hit in 2024 due to the Diggs trade:
“#Bills will have to PAY $31M in DEAD CAP for trading Stephon Diggs. This is why many thought that Diggs would not be traded. The #Texans are the big WINNERS today.”
#Bills will have to PAY $31M in DEAD CAP for trading Stephon Diggs.
This is why many thought that Diggs would not be traded. The #Texans are the big WINNERS today. pic.twitter.com/x6aJKEbiqz
— NFL Rumors (@nflrums) April 4, 2024
This hefty dead cap number is the crux of the story. A dead cap hit refers to money that a team allocates against their salary cap when a player is released or traded before their contract expires. In essence, the Bills are still “paying” Stephon Diggs for the 2024 season, even though he’ll be suiting up for Houston.
The decision to trade Stephon Diggs comes as a surprise to many considering his immense talent and his role in Buffalo’s offensive success. Diggs spent four productive seasons with the Bills, racking up four Pro Bowls, two All-Pro selections, and totaling over 4,400 receiving yards and 37 touchdowns.
However, reports suggest that Stephon Diggs’ production dipped slightly in 2023, and there might have been some frustration with his role in the offense. Additionally, the Bills are faced with a talented wide receiver class in the upcoming draft, and acquiring draft capital through the Diggs trade could allow them to select a potential replacement.
Buffalo, however, faces a reckoning. Dead cap—the financial penalty for trading a player with guaranteed money—looms large. The $31 million charge, unprecedented for a wide receiver, squeezes their cap space. The Bills, once contenders, now tread carefully. Their receiving corps, reshuffled this offseason, yearns for a new No. 1.
The $31 million dead cap hit is a significant blow to the Bills’ salary cap space in 2024. This could limit their ability to re-sign key players or make other free-agent acquisitions. The Bills could have opted to spread the dead cap hit over two seasons by processing the trade after June 1st, but they chose to absorb the full amount in 2024, potentially freeing up cap space in future seasons.
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