New Deshaun Watson lawsuit becomes a potential problem if case wasn’t disclosed to Browns

On Monday, a new lawsuit was filed against Browns quarterback Deshaun Watson. For Browns fans who have concluded that Watson isn’t the answer, the question becomes whether the new allegations could allow the Browns to escape the balance of the five-year, fully-guaranteed deal.

The short answer is, “Maybe.”

The longer answer comes from Watson’s contract. PFT has obtained a copy of it. The key provision is paragraph 42.

Here’s the full language of paragraph 42: “Player hereby represents and warrants (except as otherwise disclosed to club in writing), as of the date hereof, that (1) Player has not been charged with, indicted for, convicted of or pled nolo contendre to any felony and/or misdemeanor involving fraud or moral turpitude, (ii) Player has not engaged in conduct which could subject him to a charge, indictment or conviction of any such offense, and (iii) no circumstances exist that would prevent Player’s continuing availability to the Club for duration of this Contract.”

Did Watson disclose this specific potential claim to the Browns in writing before he signed the contract? That’s the key question. If he did, the lawsuit can’t activate paragraph 42. If he didn’t, things get potentially complicated.

Based on the default language connected to the various guarantees, Watson doesn’t necessarily have to be suspended for the payments to be voided. Instead, if he “violates any material term of the Contract {included, but not limited to, Paragraph 42),” Watson has defaulted and the future guarantees can be voided.

But here’s the most important language from Paragraph 42: “no circumstances exist that would prevent Player’s continuing availability to the Club for duration of this Contract.” This language suggests that Watson’s “availability” has been interrupted by the “circumstances” in the lawsuit. In other words, he needs to be suspended for the alleged conduct.

Could he be suspended under the Personal Conduct Policy? The first question in this regard is whether the league even knew about these allegations. As previously mentioned, the NFL has declined comment regarding the new lawsuit against Watson.

As a practical matter, this is about 2025 and 2026. He’s still due to receive $92 million, fully guaranteed, after the current season. If he would be suspended before the 2025 season begins, the Browns could declare a default, void the guarantees, and move on from Watson.

To summarize, did Watson disclose this to the Browns? If yes, the issue is over. If he didn’t, and if the ends up being suspended for it, the Browns could indeed escape the final two years of the five-year deal.