What Releasing Stefon Diggs Means for Patriots Salary Cap Situation

The Stefon Diggs era is reportedly nearing its conclusion for the New England Patriots.

Diggs, per multiple reports, has been informed by the Patriots that they will release him at the start of the league year on March 11. Despite a successful and productive year together, the Patriots apparently decided that the veteran’s rising salary cap hit for 2026 made this the appropriate time to move on.

Diggs, who will turn 33 in November, was recently advised by the team that he must restructure his contract to lower the cap hit if he wished to remain in New England. A Patriots On SI source confirmed that the Pats were willing to give him an incentive-laden deal that allowed the veteran to earn back the money – if he produced accordingly on the field. When it was determined that restructuring his deal was not a concession he was willing to make, the decision was made to part ways.

While some will point to other reasons, Diggs’ release appears to be financially motivated. Efforts to restructure were unsuccessful.

The #NEPats will incur $9.7M of dead cap, but free up $16.8M of cap space.

$1.7M of Diggs' 2026 salary is fully guaranteed https://t.co/o1Ovehg2BQ
— Mike D'Abate (@mdabateNFL) March 4, 2026

Throughout the regular season and into the playoffs, Diggs was one of the Patriots’ most productive pass-catchers, producing 1,013 yards on 85 catches and four touchdowns in 17 games this year — while adding 14 receptions for 110 yards and one score in the postseason.

Though he signed a three-year deal with New England last March, Diggs’ $20.6 million base salary in 2026 was not fully guaranteed. With $1.7 million of his 2026 salary fully-guaranteed, the 32-year-old must be released after the league year begins at 4:00 p.m. on March 9. Still, by releasing him before June 1, they are in line to save $16.8 million.

Accounting for adding in another contract with the NFL’s top 51 rule — stating that only the 51 most-expensive contracts count against the team’s salary cap — Patriots salary cap expert Miguel Benzan calculates New England’s cap situation at $57,080,841 in available space after Diggs’ official release - a $15.795 million increase from his last update.

Here is a look at Diggs’ contract numbers, pre-and-post release, via Benzan

Stefon Diggs’ Numbers Before his Release

2026 cap - $26.5 million
2026 cash - $22.5 million

2027 cap - $26.5 million
2027 cap - $22.5 million

After Diggs’ Release:

2026 cap - $9.7 million
2026 cash - $1.7 million (Patriots will receive credit on 2027 cap for any compensation Diggs receives this year)

2027 cap - $0
2027 cash - $0

The End of a Beautiful Working Friendship

New England Patriots quarterback Drake Maye Receiver Stefon Diggs — Oct 26, 2025; Foxborough, Massachusetts, USA; New England Patriots quarterback Drake Maye (10) and wide receiver Stefon Diggs (8) get ready to take the field prior to a game against the Cleveland Browns at Gillette Stadium. Mandatory Credit: Bob DeChiara-Imagn Images | Bob DeChiara-Imagn Images

When taking Diggs’ salary implications, along with his impending legal issues under account, it is a rational conclusion that New England opted for moving on from the talented wideout — especially if they are able to successfully pry a top-flight wideout such as A.J. Brown via trade away from the Philadelphia Eagles, or a by a free agency signing of Indianapolis Colts receiver Alec Pierce.

Still, the decision to part ways with the two-time All Pro does not come without risk. Perhaps factoring most prominently in the argument to retain Diggs’ services was the working relationship he enjoyed with quarterback Drake Maye. The Pats’ second-team All-Pro targeted the veteran receiver more than any other pass catcher last season. Therefore, it should come as little surprise that Maye preferred to see Diggs’ remain in the Foxborough fold for the foreseeable future.

”He can still be a big-time player in this league, and he showcased that,” Maye said. “He's got a lot of juice left in the tank, and he told me the other day he's got a chance to really work on his craft in the offseason.

“He really didn't have a chance last offseason coming from an injury, so he's got a chance to get back and working and just trying get whatever's left in his body. I know there's some left, and I'm looking forward to getting a chance to hopefully throw him some more passes and watch [No.] 8 go.”

Unfortunately for Maye, Diggs will be “going” while wearing a different uniform in 2026. As for the Patriots, the search for a new “WR1” is about to begin.

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