A common narrative surrounding the Dallas Cowboys' financial situation is the idea that they must "create cap space" to afford Micah Parsons' eventual contract extension.
This view, however, is a misconception that often misses the mark on how the NFL salary cap truly works and we've covered that topic in great detail.
Parsons, one of the league's premier defensive players, is due for a massive contract extension soon, but his salary cap hit won't immediately be as crippling as some believe.
In fact. Immediately, it will be the opposite of that.
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The cowboys did not previously require additional cap space to begin negotiations with Micah Parsons
The act of extending Micah Parsons creates cap on its own. It does not cost cap. https://t.co/efl32gZ8mm
— Landon Holifield ✭ (@TheLandoShow) March 6, 2025
The Cowboys are no stranger to structuring contracts in ways that push money into future years, allowing them to maintain flexibility. Or in other words, exactly what happened yesterday with Dak Prescott and Ceedee Lamb. As a result of those two moves that required no sacrifice from the players themselves, the Cowboys officially have $57 million more to play with.
But a Parsons extension prior to the March 12 new league year - or whenever could add millions more on top of that.
He's going to get his extension done regardless, and considering he's already openly admitted he'd sign for less and having seen Maxx Crosby's recent deal, we know what ball park the two negotiating sides might be playing in.
Las Vegas Raiders are signing Pro Bowl DE Maxx Crosby to a three-year, $106.5 million extension that includes $91.5 guaranteed, making him the highest paid non-quarterback in NFL history, per sources.
For the third time in four years, the Raiders are addressing the contract of… pic.twitter.com/TKdIQdqqia
— Adam Schefter (@AdamSchefter) March 5, 2025
The Cowboys can wait as long as they want to technically, but they know they should not have their best player holding out of training camp while they're trying to master a brand new defense under new coordinator Matt Eberflus.
Once signed, Parsons' cap hit will likely be back-loaded, allowing the team to focus on their financial flexibility in the short term while still securing their superstar edge.
These financial strategies-such as spreading out and backloading cap hits-allow them to absorb the cost of Parsons' contract without overhauling their roster. So, while media narratives often focus on "creating cap space," it's important to understand that Parsons' extension won't force the Cowboys into immediate cap turmoil.
The two are mutually exclusive, with the team's long-term planning and financial flexibility providing ample room for the future so long as they're willing to kick the proverbial can.
Related: Cowboys Fans Skeptical as Jerry Makes New 5-Point Roster Promise
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This story was originally published March 6, 2025 at 3:44 PM.