The New England Patriots have made a bold move by signing wide receiver Stefon Diggs to a three-year deal reportedly worth up to $69 million. However, the fine print of the contract reveals that this deal is far more flexible than it initially appears. While the headline numbers suggest a long-term commitment, the structure of the deal makes it clear that the Patriots have crafted a contract with plenty of room for flexibility. It could very well be a high-risk, high-reward deal that might not see Diggs in New England beyond the first year.
At first glance, the deal looks like a substantial commitment to Diggs. After all, he’s one of the most dynamic wide receivers in the league, having put up stellar numbers during his time with Buffalo and briefly in Houston. However, the reality is that the Patriots are not locking themselves into a multi-year, expensive contract. Instead, they’ve designed the deal in such a way that allows them to reevaluate their investment each year, minimizing risk while giving Diggs a chance to prove himself.
In 2025, Diggs will play on a modest base salary of $2.9 million, a number that’s relatively low for a player of his caliber. However, the deal isn’t short on incentives. He can earn up to $4.5 million in additional bonuses based on factors like receptions, receiving yards, and making the Pro Bowl on the first ballot. This structure ensures that if Diggs performs at a high level, he will be rewarded accordingly, but the team isn’t locked into a massive payout if he doesn’t meet expectations.
The contract’s signing bonus is fully guaranteed, worth $4 million, and Diggs will also receive roster bonuses of up to $3.4 million, including $1.6 million that is considered likely to be earned (LTBE). This gives the Patriots the ability to see Diggs perform and earn his money based on his contribution to the team while also keeping the financial risk manageable.
Looking ahead to the 2026 season, Diggs’s base salary jumps significantly to $20.6 million. However, this increase is offset by the fact that the team can evaluate his performance and cut him if he doesn’t live up to expectations. The signing bonus of $4 million remains fully guaranteed, but the relatively low guarantee on his salary ($1.7 million) in 2026 means that the Patriots can part ways with him without a huge dead cap hit. This is key for a team looking to maintain flexibility as they build for the future.
The deal also includes a modest $1.7 million roster bonus in 2026 and a $200,000 workout bonus, which incentivizes Diggs to stay in shape and be prepared for the season. With $500,000 in additional incentives for the 2026 season, it’s clear that the Patriots are giving Diggs a fair shot to prove he can return to his All-Pro form, but they’re not risking too much in terms of guaranteed money if things don’t work out.
The final year of the deal, 2027, mirrors the 2026 season in terms of salary structure, with Diggs set to make another $20.6 million base salary and a $4 million signing bonus. Once again, the incentives and bonuses are structured to give Diggs a chance to earn more based on his performance, but the Patriots are not tied to a long-term financial commitment if things go south.
The Patriots’ approach with this contract can be described as a “prove it” deal. In essence, they’re offering Diggs a solid platform to prove he’s still capable of being a top-tier receiver, but they’re not tying themselves to a massive salary over the long term. If Diggs performs well in 2025, he’ll earn a big payday in the following seasons. If not, the team can walk away after the first or second year with minimal financial repercussions.
From a cap management perspective, the Patriots are making sure that they won’t be saddled with long-term salary cap hits if Diggs doesn’t live up to his potential. The signing bonus proration, which extends through 2027, ensures that the Patriots have a manageable cap hit even if they decide to part ways with Diggs. The overall design of the contract is a win-win situation for both the player and the team.
The incentive structure is particularly notable in terms of how it can impact the Patriots’ salary cap. If Diggs performs well and hits his bonus targets, his cap hit could rise significantly in the 2025 season. However, the team is not fully committed to those extra costs beyond that year. Even if Diggs exceeds expectations in his first season, the Patriots will have the option to reassess his contract and decide whether it’s worth keeping him at that elevated salary in 2026 and beyond.
For Diggs, the deal represents an opportunity to prove that he can still be an elite wide receiver after recovering from a torn ACL. He’s coming off a season where he showed flashes of his old self, but with the right motivation and incentives built into his contract, Diggs has every reason to give it his all. If he stays healthy and productive, he could earn a significant payday in the future, potentially solidifying his place as a top receiver in the NFL once again.
In the end, this deal is as much about flexibility for the Patriots as it is about opportunity for Diggs. The contract is structured to give both sides room to evaluate the situation year by year, making it a high-reward, low-risk situation for New England. For Diggs, it’s a chance to prove that he can still be the game-changing wide receiver he’s known to be, while for the Patriots, it’s a way to maintain their flexibility and ensure they aren’t overexposed financially. It’s a win-win — for now.