Steelers Star Tipped for Record-Breaking Deal as Contract Rumors Erupt ‘Out of Nowhere’

Pittsburgh, PA – June 25, 2025

He’s been the face of Pittsburgh’s defense for nearly a decade. He’s already made history once. And now, he just might do it again.

In a surprising twist, NFL insiders are buzzing about a potential contract extension for T.J. Watt that could reset the entire defensive market — again. According to a new report from Bleacher Report’s James Palmer, there’s growing talk that Watt could command more than $40 million per year, a figure that would make him the highest-paid defender in NFL history.

“I’m hearing there’s a chance Watt gets past $40 million APY,” Palmer said during his segment on the NFL Insider Notebook. “He has every right to ask for it. He and Myles Garrett have nearly identical production, and they came from the same draft class. If Garrett’s worth $160 million, so is Watt.”

Palmer’s comments caught many off guard, including fellow NFL insider Mike Fisher, who described the development as something that “comes out of the blue.” Fisher speculated that the timing and framing of the rumor suggest it may have originated directly from Watt’s camp — a strategic “trial balloon” to gauge public and organizational reaction.

Watt is entering the final year of his four-year, $112 million extension signed in 2021 — a deal that, at the time, made him the highest-paid defensive player in the league. Since then, the edge rusher market has exploded. Myles Garrett’s recent 4-year, $160 million extension with the Browns has redefined the top end, and Watt — with multiple All-Pro nods and a Defensive Player of the Year title — has every reason to believe he deserves even more.

On his current deal, Watt is earning $28 million per year — a number that now feels outdated in the evolving NFL economy. With the Steelers traditionally slow to engage in midseason extensions, all eyes are on how GM Omar Khan and head coach Mike Tomlin will handle negotiations with the team’s most irreplaceable player.

The clock is ticking, and the pressure is building. Whether this rumor turns into reality or simply stirs the pot, one thing is certain: T.J. Watt still holds all the leverage in Pittsburgh — and the rest of the league is watching.

Stay tuned to ESPN!