Bills Make Crucial Salary Cap Decision, Agreeing With Dawson Knox on New Contract

The Bills' tight end was set to enter the season on a $17 million cap hit, which is likely to come down after the new deal.

Buffalo Bills tight end Dawson Knox (88) runs the ball against the New England Patriots in the first quarter at Gillette Stadium.. | David Butler II-Imagn Images

Dawson Knox isn’t going anywhere.

The Buffalo Bills’ tight end was set to enter the 2026 season under an unreasonable $17 million cap hit, but that number will likely come down after Knox agreed to a new three-year contract with the team, according to NFL Network’s Tom Pelissero.

The Bills are still working to get under the $301.2 million salary cap set by the NFL, and this move should get them closer to cap compliance by the start of the new league year on Mar. 11. Buffalo was $11.5 million over the cap before the deal was announced, according to Spotrac.

More details

Buffalo Bills tight end Dawson Knox catches a pass during first half action against the Jets at home in Highmark Stadium in Orchard Park on Jan. 4, 2026. | Tina MacIntyre-Yee/Democrat and Chronicle / USA TODAY NETWORK via Imagn Images

Pelissero posted to X on Tuesday morning, “Dawson Knox had been due $12 million this season, including a $1.5 million roster bonus Sunday. The sides had been working through options and struck a deal to bring him back for Year 8.”

Knox is coming off a productive 2025 season in which he appeared in all 17 games, recording 36 receptions for 417 yards and four touchdowns. He finished the year third on the team in total yards receiving, ahead of former second-round WR Keon Coleman and prized free-agent WR Joshua Palmer.

Knox’s contributions were particularly critical, considering fellow TE Dalton Kincaid was in and out of the lineup throughout the season. Despite finishing with 571 yards receiving and five touchdowns, which led the team, Kincaid appeared in just 12 games, while his snap share was limited even in the games he was active.

Franchise leader

Bills tight end Dawson Knox races into the end zone to score the opening touchdown of the game in first quarter against the Jets during the first half of their last regular season game at Highmark Stadium in Orchard Park Sunday, Jan. 4, 2026. The Bills won 35-8. | Shawn Dowd/Rochester Democrat and Chronicle / USA TODAY NETWORK via Imagn Images

The 29-year-old Knox has been a locker room leader for the Bills since he was drafted in the third round of the 2019 NFL Draft. Throughout his eight-year career, he has appeared in 102 games, recording 229 receptions for 2,694 yards and 27 touchdowns.

Knox and Kincaid are joined by fellow TE Jackson Hawes in the Bills’ tight end room, which is one of the strongest in the NFL. Hawes finished the 2025 season with 16 receptions for 187 yards and three touchdowns while being widely regarded as the best blocking tight end in football.

Additional moves

Buffalo Bills tight end Dawson Knox (88) runs with the ball in the fourth quarter against the Cincinnati Bengals at Highmark Stadium. | Gregory Fisher-Imagn Images

The Bills have made a few other moves before the official start of free agency, including agreeing to terms with free-agent cornerback Dee Alford, renegotiating kicker Tyler Bass’ contract, signing new backup quarterback Kyle Allen and more.

Buffalo has seen a few key contributors from a season ago walk out the door over the past two days, including guard David Edwards, quarterback Mitch Trubisky and fullback Reggie Gilliam. There are sure to be more moves to come overthe next few days.