Alex Highsmith quickly got an education in the business of the NFL as a rookie in 2020. The Steelers had two high-profile contract negotiations that offseason.
They placed the franchise tag on outside linebacker Bud Dupree in March and had a four-month window to work out a long-term contract. All-Pro defensive end Cam Heyward also was entering the final year of his contract.
The four-month franchise window for Dupree came and went, and he played the 2020 season under the terms of the tag while the Steelers took it up to a few days before the season before they re-signed Heyward to a new deal.
A year later, there was another protracted negotiation with T.J. Watt that did not end until two days before the start of the season.
Now it's HIghsmith's turn, as he is set to enter the final year of his four-year rookie contract.
"I've talked with some guys who have gone through the same situation in the past," Highsmith said. "I'm going to talk with my agent, as well. I know everything will work out. I want to be here."
General manager Omar Khan has expressed an interest in signing Highsmith to a second contract. He has said on multiple occasions the goal is to sign the pass rusher.
"You guys know our history," Khan said earlier this offseason. "When we have a young, up-and-coming player, we don't like to let those guys go."
The Steelers have a self-imposed deadline of signing players before the start of the regular season, so the clock is ticking. In one of his first acts as GM last summer, shortly after taking over for Kevin Colbert, Khan signed Minkah Fitzpatrick to a long-term deal in June, eliminating the late-summer drama that Heyward and Watt experienced.
Heyward has been through two contract negotiations with the Steelers, and he admitted it's not always the most pleasant experience.
"That's an understatement," Heyward said. "It's hard to keep things just business, but that's what we're in right now. Sure, you might have hard feelings, but that's just what comes with it."
"You have to be a professional about it. Alex is doing that. He's not letting it affect his craft. Alex is handling it the right way. I'd just say keep doing what you're doing. Keep taking care of your body, and it's going to happen."
Even if the Steelers can't come to terms with Highsmith before the start of the regular season, they can control his rights beyond 2023 by placing the franchise tag on him next spring. Placing the one-year tender on Highsmith would cost the Steelers more than $20 million on their 2024 cap number.
Highsmith is not taking a hard line in negotiations — at least not yet. He has attended the first OTA sessions this week at the UPMC Rooney Sports Complex.
"I'm someone who likes to be here and likes to work," Highsmith said.
It also helps talks between Khan and Highsmith's agent have commenced.
"Things have started," he said. "I just don't know where it is yet, but I'm here to work right now and optimistic something will get done."
So what will Highsmith's price be? And what can the Steelers afford to pay?
Watt's contract takes up nearly 13% of the Steelers' salary cap. Having two highly paid edge rushers is unique, but the Steelers could make it work. Heyward has $22 million cap hits the next two years, but his contract expires following the 2024 season. The Steelers could structure Highsmith's deal to have its biggest cap hits in 2025 and beyond with lower hits in 2023 and 2024.
For the Steelers, projecting Highsmith's ceiling is the biggest factor in their decision. He has steadily improved in each of his first three seasons and finished last season sixth in the league in sacks behind high earners such as Nick Bosa, Myles Garrett and Chris Jones.
What the Steelers have to figure into the equation is Watt's effect on Highsmith's pass-rushing stats. Highsmith recorded 11 of his 14.5 sacks when Watt was in the lineup last season and posted just 3.5 sacks in the seven games Watt missed.
When Watt is healthy he commands double-teams, which frees up Highsmith for more one-on-ones with tackles on the other side.
"I was just watching my game film during the offseason," Highsmith said. "I played far from my best ball. I have so much more in me. There were some games when I wasn't producing like I should. Honestly, I feel like there is another level. I'm going out to prove that this year."
