The Dallas Cowboys have restructured the Dak Prescott contract in March 2025, creating $36.6 million in cap space as the team prepares for the upcoming season. This strategic move comes just one day after the Cowboys restructured CeeDee Lamb’s deal, demonstrating the organization’s commitment to maximizing their financial flexibility.
The restructure transforms Prescott’s massive four-year, $240 million extension signed in September 2024 into a more manageable salary cap structure for 2025. The two restructures alone free up more than $57 million when combined with Lamb’s contract adjustments, giving Dallas significant breathing room under the salary cap.
Financial Impact of the Restructure
In 2025, Prescott will earn a base salary of $2,000,000, a restructure bonus of $45,750,000 and a workout bonus of $8,820, while carrying a cap hit of $50,527,250. The restructure conversion helps reduce what was previously a challenging cap number for the Cowboys’ front office.
The updated contract structure now shows:
- 2025: $52.9 million cap hit with $150 million dead cap
- 2026: $76.5 million cap hit with $97 million dead cap
- 2027: $70.8 million cap hit with $61 million dead cap
- 2028: $80.8 million cap hit with $35 million dead cap
Cowboys’ Approach to Free Agency
Despite creating substantial cap space through the Dak Prescott contract restructure, team owner Jerry Jones has tempered expectations about major free agency moves. Jones cautioned that Dallas isn’t “looking at free agency as a place to fill voids”, suggesting the team may take a conservative approach to spending despite their newfound financial flexibility.
Contract Security and Guarantees
The original extension includes historic guaranteed money totaling $231 million, making Prescott one of the highest-paid quarterbacks in NFL history. Prescott’s extension has $129 million guaranteed at signing with a total guarantee of $231 million, providing long-term security for both player and franchise.
The contract also features rolling guarantees that activate each March, creating annual decision points for the Cowboys regarding Prescott’s future with the organization.
Strategic Timing
The March restructure timing proves crucial for Dallas’s 2025 planning. By converting salary to bonus money and spreading it across multiple years, the Cowboys can address immediate cap concerns while maintaining competitive flexibility.
This financial maneuvering reflects the modern NFL’s salary cap management strategies, where teams regularly restructure major contracts to optimize their spending power across different seasons.
Looking Ahead
The Dak Prescott contract restructure positions Dallas for potential roster additions while maintaining their franchise quarterback through 2028. The move demonstrates the Cowboys’ commitment to building around Prescott while creating operational flexibility for the front office.
As the 2025 season approaches, this restructure provides the Cowboys with options they previously didn’t have, whether for free agency additions, contract extensions for current players, or emergency cap space throughout the season.
What are your thoughts on the Cowboys’ contract restructuring strategy? Share your predictions for how Dallas will use their newfound salary cap space in the comments below.