The New England Patriots went into the 2025 NFL offseason with the most cap space in the NFL. The front office spent like it, too. Milton Williams was signed to a massive deal worth $104 million, while Carlton Davis also cashed in on a deal worth $60 million.

All that was left was a wide receiver. The Patriots signed Stefon Diggs to a massive contract. However, the move was scrutinized, as some might view this signing as an overpay.

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However, the deal is nowhere close to what it seemed. In an article from Pro Football Talk, Mike Florio details the Diggs deal and how much it changed from its initial reporting. Albert Breer of Sports Illustrated reported the details of the contract, and Florio summarized those details.

Houston Texans wide receiver Stefon Diggs (1) reacts before a game against the New England Patriots at Gillette Stadium.Brian Fluharty-Imagn Images

Houston Texans wide receiver Stefon Diggs (1) reacts before a game against the New England Patriots at Gillette Stadium.Brian Fluharty-Imagn Images

Diggs’s 2025 contract is heavily incentive-laden. He earns a per-game roster bonus of $3.4 million for the whole season, along with a $2.9 million base salary and a $12 million signing bonus.

He can earn up to $4 million in incentives by reaching various yardage and reception benchmarks. Diggs can earn $500,000 for reaching 70, 80, 90, and 100 catches each. He can also earn the same amount for reaching 1,000 yards, 1,100 yards, 1,200 yards, and 1,300 yards.

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In 2026, Diggs’ contract guarantees are just $1.7 million, with his $20.6 million base salary non-guaranteed. He does have a $6 million injury guarantee, which becomes guaranteed for Diggs in March of 2026. The same structure is used for the 2027 season.

The Diggs contract is heavily incentive-laden, and the Patriots have an out after one year. If Diggs misses a game, he will lose $200,000. Diggs has to play every game at a Pro Bowl level if he wants to get close to the initial reported number of $69 million over three years.

With the out after year one, the Diggs deal can be viewed as a one-year deal worth $18,5 million, with team options for 2026 and 2027. What was initially considered a gross overpay was a very reasonable and team-friendly deal for the Patriots.

Related: Trade Proposal Has Patriots Trading Back to No. 12 in NFL Draft