The Decision and Its Financial Impact

The New England Patriots have sparked controversy by releasing wide receiver Stefon Diggs, just months after signing him to a three-year, $69 million contract. By invoking a clause tied to a pre-existing knee injury, the team avoided paying $26 million in guaranteed funds, including an $12 million signing bonus. This move, rooted in medical evaluations and contract stipulations, saves the Patriots approximately $8.7 million in 2025 Salary Cap space while retaining their league-leading $126 million cap flexibility.

Contract Details and Medical Stipulations

Diggs signed the deal in March 2025 following a brief tenure with the Houston Texans, where his contract was restructured to free him as a free agent. A key clause required him to pass a physical exam to secure guarantees, which he failed due to lingering effects of a torn ACL suffered in 2024. This allowed the Patriots to void financial obligations—a rare NFL maneuver—citing medical concerns.

Strategic Rationale

The decision underscores the Patriots' aggressive roster management under head coach Mike Vrabel. With a focus on rebuilding around rookie quarterback Drake Maye, the team prioritized addressing critical needs in offensive line and defensive depth while maintaining financial flexibility.

Fan and Analyst Reactions

Critics argue the move is overly harsh, noting Diggs' consistent production (over 1,100 receiving yards in six straight seasons). However, Patriots general manager Eliot Wolf defended the decision, stating, "We prioritized the long-term health of the team and adhered to contractual terms."

Stefon Diggs' Future

Now a free agent, Diggs faces challenges due to his injury history and the Patriots' controversial release. Teams like the Buffalo Bills and Los Angeles Chargers may explore low-risk deals if he demonstrates a full recovery. His talent remains undeniable, but his marketability hinges on medical clarity.

Patriots' Broader Strategy

This move highlights the Patriots' trend of leveraging contract clauses to mitigate risk—a strategy that could shape their 2025 rebuild and future transactions.

Key Terms

Stefon Diggs, New England Patriots, NFL salary cap management, contract guarantees, medical evaluations, roster strategy