Nov 3, 2024; Atlanta, Georgia, USA; Dallas Cowboys quarterback Dak Prescott (4) on the bench against the Atlanta Falcons in the fourth quarter at Mercedes-Benz Stadium.

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Cowboys Restructure Prescott, Gain Additional $36.6M In Cap Space

Dallas Cowboys big moves earns them $56.6 million in cap space in quick succession!

Nov 3, 2024; Atlanta, Georgia, USA; Dallas Cowboys quarterback Dak Prescott (4) on the bench against the Atlanta Falcons in the fourth quarter at Mercedes-Benz Stadium.

The Dallas Cowboys have done it again. In less than 2 days, Dallas has pulled off 2 massive restructures. They first restructured wide receiver CeeDee Lamb whose deal opened up $20 million of cap space, following which they did the same with quarterback Dak Prescott to clear up an additional $36.6 million. In total, that’s $56.6 million of cap space in quick time.

The Cowboys are starting a new era with the departure of Mike McCarthy and the appointment of new head coach Brian Schottenheimer. It will be interesting to see what the new direction brings out in Dallas and what moves they make this offseason. But, the first step of that process was to get control of cap space, which they have managed to do by restructuring two heavyweight contracts.

The Cowboys have restructured Dak Prescott's contract, opening up $36.6 million in cap space, per source. That's $56.6 million created in the last two days with the CeeDee Lamb move, too.
— Todd Archer (@toddarcher) March 5, 2025

Significance of Prescott’s Restructure

Last season, Prescott signed a 4-year, $240 million, making him the first person in the history of the NFL to earn $60 million per year. Working on a restructure was a necessity for Dallas as this means they can now focus on other important player contracts and dive into free agency to look for more talent.

A big worry for Dallas is the contract negotiations taking place with All-Pro linebacker Micah Parsons. Negotiations for extension were ongoing in 2024, but Parsons and Dallas couldn’t reach an agreement on the number. Dallas eventually picked up his fifth year option and paid him $24 million.

Top pass rushers are now earning $30 million or above and that is the ballpark figure we can expect Parsons to be pushing for, especially now that the Raiders have extended Maxx Crosby who will be earning $35.5 million per year. If Dallas is to get a deal done with Parsons, then this restructuring of Prescott’s contract will play a significant role in getting it over the line. Recently, Dallas extended the contract for defensive tackle Osa Odighizuwa who will now be earning $80 million over the next four years.

Road Ahead For Dallas

Last year, the Cowboys missed the postseason for the first time since 2020. Prescott played in only 8 games and went 3-5 following which he suffered a hamstring injury that sidelined him for the rest of the season. Falling to a 7-10 record, Dallas finished third in the NFC East.

Even though the stars in Dallas are getting paid handsomely, it is the winning that matters most to them. Both Parsons and Lamb have stated that they are not after the biggest contracts but want to play for an organization capable of winning the Super Bowl and for that Dallas will need to surround its top players with more talent this offseason.

Also Read: Maxx Crosby Contract Extension

Dak Prescott

Dallas Cowboys

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Devavrat Kulkarni

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I am a content writer for the NFL team, and joined The Playoffs after working with Sportskeeda and NFL Analysis as an NFL writer. After starting my professional career as a French-to-English translator, working as a content writer is a new adventure for me. I started out in the sports media field for two main reasons: my love for sports in general, especially the NFL, NBA, and Tennis, as well as my passion for writing. The best part of this job is that I get to write a variety of pieces with the freedom to explore content from various angles. It also enables me to stay up to date with the sporting world, which otherwise can be difficult to do in the day-to-day grind. In a world full of chaos, sports unite and entertain like nothing else!