When Ian Rapoport first reported on March 17th that the Houston Texans had signed Derek Stingley Jr. to a record-breaking extension, the $30 million APY figure caused immediate waves. The deal eclipsed the recent Jaycee Horn extension, making Stingley the highest-paid cornerback in NFL history—at least on paper.
But as more details emerged, including the critical inclusion of the 5th-year option, it became clear this move by Nick Caserio was another example of long-term planning, similar in nature to the Laremy Tunsil trade, but with a different objective.
Let’s dive deeper into how context and structure completely change the story behind this deal.
5th-Year Option Was the Key Detail
When the deal first broke, many assumed Stingley was only extended for three additional years at $30M APY, and resetting the CB market by a wide margin. But when Jeremy Fowler of ESPN later confirmed that the Texans exercised Stingley’s 5th-year option as part of the negotiations, the conversation shifted.
Here’s the accurate structure:
2025: Final rookie year – $11M cap hit
2026: 5th-year option – $12.566 million cap hit
2027-2029: Extension at $30 million APY
With the option included, Stingley’s 4-year team-control APY (2026-2029) drops to $25.5M, and when you factor in 2025, the Texans now have Stingley under contract for five years at a team-controlled APY of $22.6M APY—lower than the sticker-shock $30M figure.
Horn vs. Stingley — A Proper Comparison
When comparing these deals, it’s vital to view them apples to apples, with both players' 5th-year options included.
Deal 1: Horn’s 5th-year + 4-year extension
5th-year option for 2025: $12.566 million
4-year extension: $100M total, $25M APY
Total (5 years): $22.4M APY
Deal 2: Stingley’s 5th-year + 3-year extension
5th-year option for 2026: $12.566 million
3-year extension: $90M total, $30M APY
Total (4 years): $25.5M APY
It’s common for longer deals to come with slightly lower APYs since teams gain more years of control and players typically trade some annual value for long-term security. While Stingley’s 4-year APY (option + extension) is higher, when stretched across 5 years including his final rookie year, Stingley’s average becomes $22.6M APY vs. Horn’s $22.4M APY—a negligible difference. Reminder: These figures represent team-control APYs for clarity.
It’s also worth noting that both Stingley and Horn share the same agent, David Mulugheta, which likely played a role in how these negotiations unfolded. Mulugheta helped reset the market twice—first with Horn’s deal, then with Stingley’s.
It’s also important to highlight that Stingley’s extension doesn’t kick in until 2027, two years from now. By then, the cap will have risen further, and the CB market may reset again, making $30M APY less painful relative to league economics.
5-Year Cap Comparison (2025-2029)
Derek Stingley Jr.’s Cap Outlook
Year | Cap Hit | Dead Cap |
2025 | $12.0M | $53.6M |
2026 | $27.1M | $41.5M |
2027 | $25.5M | $15.0M |
2028 | $26.5M | $10.0M |
2029 | $27.5M | $5.0M |
Obtained via overthecap.com
Jaycee Horn’s Cap Outlook
Year | Cap Hit | Dead Cap |
2025 | $7.3M* | $46.7M |
2026 | $23.0M | $39.3M |
2027 | $22.6M | $17.0M |
2028 | $28.6M | $11.3M |
2029 | $30.6M | $5.6M |
*Note: Horn’s original $12.566M 5th-year option was restructured to a $7.3M cap hit in 2025, with prorated bonuses spreading into later years.
Horn’s structure is very similar to Stingley’s in terms of cap smoothing and gradual dead cap decline. Both teams took similar approaches, but Caserio got ahead of the market by extending Stingley two years before the extension begins.
Durability Comparison: Fair to Ask Hard Questions
Injury history is often mentioned when debating these contracts, but a fair comparison favors Stingley:
Derek Stingley Jr. (3 seasons)
2022 (rookie year): Missed 8 games late in a tanking season under Lovie Smith.
2023 (DeMeco Ryans’ first season): Missed 6 games with a hamstring injury. The Texans took their usual cautious approach in returning Stingley from injury, likely sidelining him a couple of extra weeks.
2024: Played all 17 games, earned First-Team All-Pro honors, and made the Pro Bowl.
Total games missed in 3 seasons: 14
Jaycee Horn (4 seasons)
2021: Fractured foot in Week 3, missed 14 games.
2022: Missed 2 games with a rib injury.
2023: Missed 10 games with a hamstring injury.
2024: Returned to form, earning a Pro Bowl nod.
Total games missed in 4 seasons: 26
While both corners have dealt with soft-tissue injuries, Horn’s injury history is longer and includes a major foot fracture, yet both players reset the market at the position.
Caserio’s Strategy: Similar but Different Than Tunsil
This deal follows Caserio’s recent forward-thinking cap philosophy, which we saw earlier this offseason when he traded Laremy Tunsil.
The Tunsil trade was a proactive move to shed future cap hits and avoid a major extension showdown.
The Stingley extension, however, is the opposite: a proactive investment in securing a young cornerstone player well ahead of market inflation.
A potential bonus in the Stingley extension is that, like many extensions, it could lower the current-year cap hit. While final figures aren’t confirmed, projections from OverTheCap suggest this deal could free up to $4 million in 2025 cap space, giving Caserio added flexibility to operate now.
Final Verdict: A Smart Gamble on Stingley’s Prime Years
By securing Stingley for five years at $22.6M team-controlled APY, Caserio locked down one of the NFL’s top young cornerbacks through his prime years. With cap flexibility after 2027 and declining dead cap numbers, the Texans are positioned to remain agile.
It’s also likely that the inclusion of the 5th-year option was part of the negotiations with David Mulugheta (who also represents Jaycee Horn), helping create a win-win scenario. Stingley reset the market, but the Texans secured more value over the full window of team control.
Given Stingley’s ascending trajectory and Houston’s commitment to building around C.J. Stroud, this deal looks less like a gamble and more like a strategic investment in a potential perennial All-Pro cornerback—one that could age well as the CB market resets.
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