As the 2025 league year draws near, the Dallas Cowboys face a significant financial dilemma regarding Dak Prescott’s contract.
While his contract was designed to offer short-term cap flexibility, the upcoming $89.896 million cap charge for 2025 is simply too high. The Cowboys are anticipated to restructure Prescott’s deal to create much-needed cap space, a tactic they have frequently used in the past.
Dallas has consistently employed contract restructures to manage the salary cap, and Prescott’s deal will follow suit. The Cowboys can convert a significant portion of his 2025 salary into a signing bonus, lowering his cap hit to somewhere around $50-54 million while unlocking about $36-40 million in cap space.
This approach allows them to preserve roster flexibility while deferring the financial burden to future seasons. NFL insider Mike Fisher of CowboysCountry.com expects this adjustment to occur soon, especially with free agency set to begin on March 12.
“At any point, the Cowboys can ‘flip the switch’ on Dak’s current contract… and open up roughly $36 to $40 million in cap space,” Fisher reported. Given the Cowboys’ offseason priorities, it’s unlikely they’ll delay this move for long.
Prescott’s contract isn’t the only one under consideration.
The Cowboys may also restructure wide receiver CeeDee Lamb’s contract, potentially freeing up another $20 million in cap space. Furthermore, if the Cowboys finalize a long-term deal with star defender Micah Parsons, they could unlock even more cap flexibility, possibly approaching $100 million in total available cap space.
However, while restructuring contracts offers immediate relief, it has long-term consequences. By pushing cap hits into future years, the Cowboys will face financial challenges later, particularly when Prescott eventually departs Dallas. If they continue postponing his long-term future, they risk a significant dead cap hit when he moves on.
Led by owner Jerry Jones and COO Stephen Jones, the Cowboys’ front office has typically been cautious about major financial decisions. But with Prescott’s looming $90 million cap hit, they can’t afford to stand still. If Dallas wants to keep key players and strengthen the roster in free agency, restructuring Prescott’s contract is essential.
With free agency just around the corner, the Cowboys must act swiftly. Whether they restructure Prescott’s deal or work out a long-term extension, the choice they make in the coming weeks will have lasting effects on the team’s financial future and championship prospects.