Why the Patriots are set to release Stefon Diggs in cap-cutting move

Why the Patriots are set to release Stefon Diggs in cap-cutting move originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.

Stefon Diggs arguably exceeded expectations in his first season with the New England Patriots, staying fully healthy and posting more than 1,000 yards while helping push the team to the Super Bowl, but the book is already closing on his time in Foxborough.

Diggs will be released by the Patriots after one season once the new league year begins next week, a move the Pro-Bowler confirmed with a goodbye message on Wednesday:

Stefon Diggs thanks the Patriots. A source says the Patriots have informed him he will be released at the start of the league year. Ties to finances, as cap charge was spiking from $10.5m to $26.5m. pic.twitter.com/bh1OlZbTrU— Mike Reiss (@MikeReiss) March 4, 2026

While the Patriots don't have a clear-cut No. 1 receiver with Diggs out of the picture, his contract and legal situation made his future with the team uncertain entering the offseason.

Here's what you need to know about Diggs' impending release.

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Why are the Patriots releasing Stefon Diggs?

The Patriots structured Diggs' three-year contract in a way that allowed them to move on after one year without a significant penalty, a decision that seemed reasonable at the time given the uncertainty surrounding the receiver's age and health. 

The situation became much more interesting when Diggs turned in about as strong of a season as New England could have hoped, with more than 1,000 yards and a Super Bowl appearance as the entire offense improved around Drake Maye. Diggs was still due to count $26.5 million against the cap in 2026, which would have been difficult for the Patriots to absorb, and they instead are choosing to move on rather than restructuring the deal.

Releasing Diggs saves the Patriots $16.8 million in 2026, as he will only count for $9.7 million in dead cap money. If the Patriots kept Diggs through the first week of free agency, $6 million more of his deal would have become guaranteed.

The legal situation hovering over Diggs could have also been a factor in the decision. Diggs is facing two charges, including felony strangulation, after an alleged incident involving his personal chef in early December. The case has not yet been resolved, but a suspension could loom once it is.

Diggs' release leaves the Patriots searching for another No. 1 receiver as they try to defend their AFC title, setting the stage for a fascinating offseason.

Stefon Diggs contract

Diggs signed a three-year, $63.5 million contract with the Patriots last March, which raised a few eyebrows coming off an ACL tear. A look under the hood proved the contract wasn't necessarily what it appeared to be on the surface.

Because of the way the deal was structured, the Patriots are able to get out of it and save $16.8 million for 2026, carrying over only a $9.7 million dead cap hit for Diggs. Diggs' strong season had many believing the two sides would just restructure the deal with a $26.5 million cap hit due for 2026, but New England is instead moving on after only one season.

Stefon Diggs stats

Diggs bounced back from an injury-shortened 2024 to post his seventh career 1,000-yard season in 2025, staying healthy for all 17 games and averaging 11.9 yards per match for his highest mark since 2022. As he looks for a new team, Diggs is heading into his 12th NFL season at age 32.