Report: Stefon Diggs' Bills Salary Converted into Bonus; Creates $7.8m in Cap Space

The Buffalo Bills reportedly created some additional salary-cap space Tuesday by converting some of wide receiver Stefon Diggs' base salary into a signing bonus.

According to ESPN's Field Yates, the Bills converted $11,718,333 of Diggs' salary into a signing bonus, which will give Buffalo $7,812,222 in additional cap space for the 2021 season.

With the move, the Bills could potentially add another high-impact player before the start of the 2021 campaign.

Buffalo acquired Diggs in a trade with the Minnesota Vikings last offseason, and the move paid immediate dividends for Diggs, quarterback Josh Allen and the Bills as a whole.

In his first season as a member of the Bills, the 27-year-old Diggs led the NFL with 127 receptions and 1,535 receiving yards, while also reeling in eight touchdown catches. As a result, he was named a Pro Bowler and First Team All-Pro for the first time in his career.

Per Spotrac, Diggs was set to earn a base salary of $12,708,333 in 2021, which is the third year of a five-year contract extension he signed with the Vikings in 2018.

Before the reported restructuring of Diggs' contract, the Bills only had about $3.2 million in cap space, according to Spotrac.

Buffalo should now have about $11 million in cap space, and there are a few players who general manager Brandon Beane could potentially pursue with that extra money.

Atlanta Falcons wide receiver Julio Jones is the biggest name of the bunch, and every indication is that the Falcons intend to trade him before the start of the 2021 season due to cap issues.

Jones even told Shannon Sharpe in a phone conversation on FS1's Undisputed last week that he's "outta there" with regard to his tenure in Atlanta.

While Jones would give Allen another big-time weapon in the passing game, the 2020 NFL MVP runner-up doesn't necessarily need another wide receiver since he already has a strong group headlined by Diggs, Cole Beasley, Emmanuel Sanders and Gabriel Davis.

Buffalo has a far bigger need at tight end, which is a position it didn't get much production from last season and traditionally hasn't gotten strong statistical output from throughout the history of the team.

Philadelphia Eagles tight end Zach Ertz is known to be on the trade block, and it seems likely the Eagles will move on from him in some capacity before the start of the 2021 season in order to give Dallas Goedert the starting job all to himself.

The 30-year-old Ertz was the victim of injuries and poor quarterback play in Philadelphia last season, resulting in him finishing with 36 receptions for 335 yards and one touchdown in 11 games.

In the five seasons before that, however, Ertz averaged 86 receptions for 914 yards and over five touchdowns per year, making the three-time Pro Bowler one of the most productive tight ends in the NFL during that time.

Ertz would easily supplant Dawson Knox as the starting tight end in Buffalo and give Allen a reliable safety blanket capable of moving the chains with regularity.

One other available player who could be on the Bills' radar is cornerback Steven Nelson, who was released by the Pittsburgh Steelers this offseason.

The 28-year-old Nelson has starting experience for the Kansas City Chiefs and Steelers, and he started all 30 of the regular-season games he appeared in for Pittsburgh over the past two seasons.

Nelson had two interceptions and nine passes defended last season, and he would likely be a starter in Buffalo across from No. 1 corner Tre'Davious White.

The Bills are lacking depth at corner and could use an upgrade at the No. 2 spot, as Levi Wallace and 2020 seventh-round pick Dane Jackson are expected to vie for the starting job there.

ESPN's Jeremy Fowler reported last month that the Bills are one of 14 teams that have expressed interest in Nelson.

With so many teams checking in on the corner, Buffalo may have to pay up to get him, and restructuring Diggs' contract allows the Bills to be legitimate players for Nelson's services.

Regardless of whether the Bills add a player or keep the cap space for flexibility during the season, they figure to be among the top Super Bowl contenders in the NFL after reaching the AFC Championship Game last season.