The Dallas Cowboys have restructured quarterback Dak Prescott’s contract, significantly reducing his 2025 salary cap figure and creating much-needed financial flexibility. By converting $45.75 million of Prescott’s base salary into a signing bonus, the Cowboys lowered his cap hit from $89.89 million to $53.29 million, freeing up $36.6 million in cap space.
This move comes as part of a broader effort by the Cowboys to manage their salary cap ahead of the upcoming free agency period. In addition to Prescott’s restructuring, the team also adjusted wide receiver CeeDee Lamb’s contract, bringing their total newly created cap space to $56.6 million. Despite these financial maneuvers, owner and general manager Jerry Jones emphasized that the team does not plan to be overly aggressive in free agency.
Selective Spending, Not a Free Agency Splash
While the Cowboys now have more flexibility, Jones made it clear that they are not looking to make major free-agent splashes. Instead, the organization will focus on retaining key players and utilizing the NFL Draft to fill roster needs.
“I’m not looking at free agency as a place to fill voids,” Jones stated. “Not if you include what might work for us in the draft and what we’re doing with our own roster relative to who we want to sign.”
Micah Parsons’ Future & Extension Talks
The financial restructuring does not impact a potential contract extension for All-Pro pass rusher Micah Parsons, who is set to play the 2025 season on his fifth-year option at $22.06 million. A long-term deal for Parsons could further lower his cap hit and create additional room for roster improvements.
Parsons, who has expressed his desire for the Cowboys to be more active in free agency, previously stated that he does not need to be the highest-paid defensive player in the league. The Cowboys have already begun discussions with his representatives regarding an extension.
Osa Odighizuwa Secures New Deal
On Tuesday, the Cowboys locked in another key defensive piece, signing defensive tackle Osa Odighizuwa to a four-year, $80 million contract, which includes $52 million guaranteed. His 2025 cap number is set at $6.25 million, providing a team-friendly structure while securing a critical piece of the defensive front.
Roster Decisions Loom
With free agency set to begin next week, the Cowboys have several pending free agents they hope to retain, including cornerback Jourdan Lewis, punter Bryan Anger, and running back Rico Dowdle. However, they could also lose significant contributors, such as linebacker Eric Kendricks and longtime defensive end DeMarcus Lawrence.
If Lawrence departs, and with All-Pro right guard Zack Martin retiring, Prescott would become the longest-tenured player on the Cowboys’ roster. The former fourth-round pick from 2016 has been the team’s franchise quarterback for nearly a decade and remains at the center of their long-term plans.
Long-Term Cap Implications
While the restructuring provides immediate relief, it also increases Prescott’s 2026 cap hit by $9.15 million, bringing it to $76.8 million. The Cowboys will need to address his contract situation again in the near future, whether through an extension or further restructuring.
Despite the financial shifts, the Cowboys remain focused on building around Prescott and Parsons, prioritizing roster continuity and strategic additions rather than aggressive spending in free agency. As the offseason progresses, all eyes will be on Dallas to see how they navigate these crucial roster decisions.
