PFR’s Cowboys Offseason Outlook indicated the team exited last week with the league’s worst cap situation. Dallas came into today more than $56MM over the $301.2MM salary ceiling. They are moving back toward cap compliance with some expected adjustments.
The Cowboys restructured Dak Prescott and **Tyler Smith**‘s contracts Wednesday, ESPN’s Field Yates and Adam Schefter tweet. These moves will create $47MM in cap space, bringing Dallas within $10MM of the 2026 cap. The team also restructured **CeeDee Lamb**‘s deal to clear more room, per ESPN.com’s Todd Archer. Other possible conversions are available as well. The Lamb move, expected to clear $19MM more in space, slides the Cowboys under the cap.
Dallas used a $28.29MM franchise tag to keep George Pickens off the free agent market. That sank the team deeper into the red. But Pickens is firmly in the Cowboys’ 2026 plans. As a result, contract updates are coming to make it affordable.
Prescott, 32, is tied to the NFL’s richest contract — a four-year, $240MM extension agreed to hours before Week 1 of the 2024 season. This move will reduce the 11th-year quarterback’s $50.52MM 2026 cap number while inflating future numbers on the through-2028 contract. Before this restructure, Prescott was already due to count more than $74MM against Dallas’ 2027 cap. Another restructure would be on tap before that point.
The Cowboys backed themselves into a corner with Prescott based on previous restructures. His no-tag clause and the void year-driven penalties that would have come in 2025 absent an extension armed the upper-crust QB with extraordinary leverage. He used it to score the $60MM-per-year extension — which still hovers well above the QB market 18 months later.
Lamb is signed through 2028 on a $34MM-AAV extension. The Cowboys have now restructured his deal twice as well. Lamb was due to count $38.24MM on Dallas’ 2026 cap and more than $41MM next year. While Lamb’s 2027 number will balloon, his 2026 figure will drop to create spending space. Smith, who signed the NFL’s most lucrative guard deal last fall ($24MM AAV), is signed through 2030. His cap number will drop from $27.5MM.