Deshaun Watson contract, explained: Why a suspension won’t have much impact on Browns QB’s earnings with Cleveland

The Browns made a risky move during the 2022 NFL offseason when they traded for embattled Texans quarterback Deshaun Watson. The 26-year-old passer was facing over 20 lawsuits accusing him of sexual assault and misconduct, but teams were still interested in acquiring him in spite of this.

Ultimately, Cleveland won the sweepstakes for his services, but the team still faced some major questions. Would Watson be able to play in 2022? If so, at what point would he debut? And how will he fare after spending the entire 2021 season off the field amid a dispute with Houston?

All of those questions were certainly valid, and they were finally answered on Thursday. Watson will be suspended for 11 games after violating the NFL’s personal conduct policy but he will be able to play in 2022, beginning in Week 13 against the Texans.

With the suspension now agreed upon by the NFL and NFLPA, fans are asking another key question about Watson. How much money will he lose and the Browns save as a result of the suspension?

Watson has a unique contract structure that was seemingly designed to mitigate the impact a suspension could have on his earnings potential. Here’s a full breakdown of Watson’s contract during his suspension.

MORE: Everything to know about Deshaun Watson’s six-game suspension

Deshaun Watson contract details

Watson signed a five-year contract worth $230 million after being traded from the Texans to the Browns. The entirety of Watson’s deal is guaranteed, which was heavily scrutinized at the time of the trade considering the lack of clarity surrounding his legal situation.

Nonetheless, the Browns were comfortable giving Watson a massive contract, and the details of the pact, per Spotrac.com, are listed below.

DeCOURCY: Magnitude of Browns’ brainless deal for Deshaun Watson coming into focus

Why is Deshaun Watson’s salary only $1 million in 2022?

Watson agreed to take on a base salary of just $1.035 million in 2022. Why did he do that? Well, Cleveland has recently signed several veterans to long-term contracts during which their base salary in the first year has been on the low end of things.

However, in Watson’s case, the first-year salary may have been part of a sneaky plan that effectively negates the impact of a suspension on Watson’s overall earnings.

The logic was that if Watson was suspended for less than a full season, he would have forfeited just 1/18 of his year-long base salary per week (over 17 games and a bye week). Watson’s original six-game suspension in 2022 will cost him just $345,000 given his low base salary. An 11-game suspension will cause him to surrender $632,500.

If Watson was making a $46 million base salary, as he is in the other four years of the contract, he would stand to lose about $28.11 million.

As such, defraying Watson’s base salary allowed the Browns to save the quarterback more than $28 million. However, Watson is still making $46 million in cash during the 2022 season. How is that possible? The Browns gave Watson a signing bonus of $44.965 million which gives him a total 2022 contract value of $46 million when added to his $1.035 million base salary.

So, in reality, Watson was set to make $46 million in 2022 no matter what. But charging him far less than that in base salary gave him a safety net against him losing a chunk of that change during his suspension.

MORE: Jacoby Brissett leads Browns QB depth chart with Deshaun Watson suspended

What happens to Deshaun Watson’s contract when he is suspended?

What happens to Watson’s contract depended on the length of his suspension. As mentioned, being suspended for less than a full year causes Watson to forfeit 1/18 of his base salary per week for the duration of his suspension. That’s why he will forfeit just $632,500 in 2022.

However, had Watson been suspended for a year, it would have had a much different impact on his contract status.

By rule, NFL contracts toll a year if a player is suspended for more than a year. What does that mean? Essentially, Watson’s contract would be pushed back by a year. The NFL would push back any compensation owed to him in 2022 to 2023 while doing the same for each ensuing year.

As such, the Browns wouldn’t have had to pay Watson at all in 2022 if he was suspended a full year; however, CBS Sports’ Joel Corry reports that $8.933 million of Watson’s prorated signing bonus would still be on the books for 2022. As such, the Browns would save just $1.035 million in cap space, as a result of Watson’s forfeited base salary.

The Browns would have Watson under contract from 2023 through 2027 instead of 2022 through 2026 by virtue of his contract being pushed back a year.

Below is a look at how Watson’s contract would change if he is suspended for a full season, per information via Spotrac.com and Corry:

This punishment would have ensured that Watson isn’t paid in 2022, and it would also have ensured that he would have to play a year with an actual base salary of $1.035 million. Additionally, it would push his potential free agency date back by a year, which would be a disadvantage for him as he looks for another massive contract.

The Browns would only have saved $1.035 million via a full-year suspension for Watson, so it wouldn’t have a major impact on their available cap space. Still, they have nearly $49 million in cap space, so they could have pursued a short-term fix at quarterback in 2022 with Watson suspended.

Of course, that ultimately didn’t happen, so Watson will just forfeit a small chunk of his base salary and overall in 2022. So, this is what his revised contract with Cleveland will look like. 

That’s a negligible difference from his pre-suspension contract projection.

MORE: Can the Browns void Deshaun Watson’s contract post-suspension?

Does Deshaun Watson forfeit any salary with a suspension?

Watson’s $230 million contract was fully guaranteed, but many are wondering if the Browns will be able to recoup some of the money if he is suspended. In short, they will not be able to.

As CBS Sports’ Joel Corry reports, there is language in the Browns’ contract with Watson that prevents them from asking for any of his signing bonus or salary back. Below is the official cause from Watson’s contract, per Corry.

…it shall not constitute a failure or refusal to practice or play with the Club and Player shall not be in default if: … (iii) Player is suspended solely in connection with matters disclosed to Club in writing pursuant to Paragraph 42 which results in Player’s unavailability to Club solely for games during the 2022 or 2023 NFL League Years.

Had Watson’s contract not included this language, the Browns would have been able to ask him to return his $8.933 million prorated signing bonus for 2022 if he was suspended for a full season. And with him suspended for part of the season, they could have asked for a prorated amount — number of games suspended divided by 18 —  of it back.

Alas, Watson made sure to protect himself and his money while negotiating an extension with the Browns. So, even with him out, the Browns will have few ways to get back the money they are budgeting for Watson outside of the $345,000 from his $1.035 million base salary.