It actually looksl ike they can create quite a bit of space somewhat easily, esp. since some of their pieces weren't producing to salary.
If they convert tunsil's base into signing bonus, cut cooks, cut david johnson, spotrac says they can create $38 million, which in this free agency could be a decent amount. Without a 1st/2nd, this is really their only shot to improve this year and show off to watson. Now, they just cut Watt, so again, I don't see how they can both hold leverage and address his concerns. So I tend to think Watson is actually in a fairly strong position, but to me I think if you are houston you have to try and show a plan in march, and if it's still at this stage in april, then start the bidding.
But it's hard to get in their heads because they are such idiots.