Sources: Texans clear final three seasons with Stefon Diggs deal

As part of their blockbuster trade to acquire wide receiver Stefon Diggs, the Houston Texans cleared the final three years of his contract, giving him the ability to become a free agent after this season, league sources told ESPN's Adam Schefter.

The Texans also took the $3.5 million guaranteed to Diggs next season and upped it to this season, giving him $22.52 million in guaranteed money in 2024.

The Texans acquired Diggs on Wednesday, sending a 2025 second-round pick (via the Minnesota Vikings) to Buffalo. Houston also acquired two draft picks: a 2024 sixth-round pick (No. 189 overall) and a 2025 fifth-round pick. The Texans acquired a 2025 second-round pick from the Vikings when they traded a 2024 first-round pick to Minnesota last month.

With the contract settlement, the Texans are now hoping to get a better version of Stephen Diggs, who will be in a position to negotiate another long-term deal next season.

Diggs, a three-time captain with the Bills, signed a four-year, $104 million contract extension with the team in April 2022. After trading Dix, the Bills will have a $31.096 million debt charge next season, according to the roster management system. According to ESPN Stats and Information Research, that would be the largest dead money payment ever made for a wide receiver in any season.

Dix's production dipped following the first six games of the 2023 season. He didn't have a 100-yard receiving game all season and only caught three touchdowns. In the Bills' final seven games last season, including the playoffs, Diggs averaged 41.0 receiving yards and zero touchdowns per game. It was the only time in Diggs' career that he went seven straight games without a touchdown.

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However, Diggs set various team and league records during his time with the team, including being one of only four players in NFL history to record four consecutive seasons with 100-plus receptions (Antonio Brown, DaVante Adams and Marvin Harrison are the others. )

Diggs is one of two receivers to be selected to the Pro Bowl in each of the last four seasons, along with Tyreek Hill.

ESPN's Alaina Getzenberg contributed to this report.

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