The Houston Texans will forfeit their fifth-round selection in the 2023 NFL draft and have been fined $175,000 for a salary cap reporting violation involving Deshaun Watson.

After a review, the league determined that the Texans provided Watson compensation in the form of a membership at an alternative athletic facility in 2020, early in the COVID-19 pandemic.

The Texans said they "absorbed $26,777 in costs for player benefits for the use of alternate athletic facilities." The team said it understands that amount "should have been charged instead to player salaries."

According to the collective bargaining agreement, teams must report any player compensation or benefit. The Texans believe the payment didn't provide any salary cap advantage and viewed it as an accounting error.