Cowboys Restructure Prescott’s Contract, Gain $36.6 Million in Cap Space

FRISCO, Texas — The Dallas Cowboys have restructured quarterback Dak Prescott‘s contract, creating $36.6 million in salary cap space, sources told ESPN on Wednesday. This significant move reduces Prescott’s cap figure from $89.89 million to $53.29 million.

The restructuring is part of a wider effort, as the Cowboys have opened up $56.6 million in cap room over the past two days by also restructuring the deal of wide receiver Amari Cooper.

Despite the newfound cap flexibility, owner and general manager Jerry Jones emphasized that the team is not planning to make major signings during the upcoming free agency period. “I’m not looking at free agency as a place to fill voids,” Jones stated. “We have needs, but we want to align that with our draft strategy and existing roster decisions.”

The recent contract restructures do not impact the potential extension for All-Pro linebacker Micah Parsons, who will enter the 2025 season on the fifth-year option of his rookie contract at $22.06 million. Parsons has previously expressed that he does not require the title of the highest-paid defensive player but desires for the Cowboys to be competitive in free agency.

Representatives for Parsons are currently in discussions with the Cowboys about a contract extension. The timing of the negotiations does not seem urgent to Jones, who recalled signing wide receiver CeeDee Lamb just before training camp last year and Prescott hours before the 2023 season opener.

“We get criticized because we wait until the end… but it just happens that way,” Jones said. “I’ve been one of the earliest to finalize contracts in my 35 years.”

On Tuesday, the Cowboys made another key signing by extending defensive tackle DeMarcus Lawrence‘s contract with a four-year deal valued at $80 million, including $52 million guaranteed. Lawrence’s cap number for 2025 is now set at $6.25 million.

Executive vice president Stephen Jones characterized the team’s approach to free agency this year as “selectively aggressive,” acknowledging the lessons learned from losing several key players last season, including left tackle Tyron Smith and running back Ezekiel Elliott.

“As opportunity comes up, we’ll weigh it,” Jerry Jones noted, emphasizing both the offensive and defensive strategies need to complement their approach centered around Prescott.

With free agency on the horizon, the Cowboys face decisions regarding several pending free agents, including cornerback Trevon Diggs, punter Bryan Anger, and running back Tony Pollard. Linebacker Leighton Vander Esch, last year’s leading tackler, is also set to hit the market, along with long-serving defensive end Aldon Smith.

Should Lawrence depart and All-Pro right guard Zack Martin retire, Prescott, who was drafted in the fourth round of 2016, would become the longest-tenured player on the roster. While Prescott benefits from the restructuring, his cap number is projected to rise to $76.8 million in 2026, reflecting a $9.15 million increase due to the latest changes.