The Dallas Cowboys entered the 2026 offseason with one of the NFL’s worst salary-cap situations. They endured a turbulent 2025 season and a massive roster overhaul, including the shocking trade of Micah Parsons. Owner Jerry Jones and the front office made fixing the books their top priority.
The Cowboys finally created breathing room. Contract restructures freed up major cap space and returned the team to compliance before the new league year. Even after unlocking millions, they still face a big move: tweaking star wide receiver CeeDee Lamb’s deal.
Cowboys Free Up Big Budget in Cap Room, Still Expected to Tweak CeeDee Lamb Deal
Dallas Cowboys, CeeDee Lamb
Dec 25, 2025; Landover, Maryland, USA; Dallas Cowboys wide receiver Ceedee Lamb (88) runs onto the field prior to the game against the Washington Commanders at Northwest Stadium. Mandatory Credit: Amber Searls-Imagn Images
The Dallas Cowboys freed up big-budget cap room on March 4. ESPN insiders Adam Schefter and Field Yates reported restructures to quarterback Dak Prescott’s and offensive lineman Tyler Smith’s contracts. The moves created roughly $47 million in salary-cap space.
The financial maneuver immediately pushed Dallas closer to compliance after starting the week as the most over-the-cap team in the NFL.
“Cowboys now have officially restructured the contracts of Dak Prescott and Tyler Smith, creating $47 million in cap room.”
Cowboys now have officially restructured the contracts of Dak Prescott and Tyler Smith, creating $47 million in cap room, per @FieldYates and me.
They still are expected to restructure CeeDee Lamb’s contract to help get cap compliant. pic.twitter.com/rXf71e6gox
— Adam Schefter (@AdamSchefter) March 4, 2026
The restructuring worked exactly as intended. The Cowboys converted portions of Prescott and Smith’s salaries into bonuses. Thus, spreading the cap hits across future seasons. For a team desperate for immediate flexibility. It was the quickest way to unlock space before free agency opens.
The Cowboys freed up even more cap space. ESPN’s Todd Archer reports Dallas restructured wide receiver CeeDee Lamb’s contract next. This pushed the team fully under the league’s cap ahead of the 2026 business year.
Once the Prescott, Smith, and Lamb adjustments were combined, the Cowboys generated about $65 million in total cap relief, per Spotrac’s financial tracking, leaving Dallas roughly $7 million under the salary cap.
The Cowboys needed that breathing room. Days earlier, OverTheCap listed them $56.5 million over the cap, the NFL’s worst figure.
Insiders expect more tweaks. Beat reporter Nick Harris of the Fort Worth Star-Telegram says restructures or extensions could follow. Defensive linemen Kenny Clark, Quinnen Williams, and Osa Odighizuwa rank as prime candidates for cap adjustments.
Clark could land a new extension that cuts his 2026 cap hit. The veteran defensive tackle, whom the Cowboys got from Green Bay in the Micah Parsons trade, anchors the defensive front under new coordinator Christian Parker.
Parker evenpraisedClark’s fit in his scheme while discussing defensive philosophy during a recent Dallas radio appearance.
“Up front, you want guys to be aggressive because you have to convert to pass-rush and everything like that,” Dallas Cowboys defensive coordinator Christian Parker said on 105.3 The Fan. When I was in Green Bay with Kenny Clark, he was the best nose in football… he plays with good length and has a good anchor.”
The Cowboys freed up major cap space, but the job remains unfinished. Free agency looms as defensive holes glare in the wake of the 2025 collapse. Dallas will reshape more contracts, including tweaks to CeeDee Lamb’s deal, for extra financial firepower.