Navigating the 2024 Salary Cap: Cowboys
The Dallas Cowboys don't have to make a lot of moves to be cap compliant but a couple of moves they will need to consider are significant.
Note: This week's piece is coming out a few days early because of the Christmas holiday. I'm going to visit family for the holidays and, with any luck, flights won't get canceled because of cold weather this time around. I may have a bonus piece coming later this week -- just depends on how things work out. I wish everyone a Merry Christmas.
The Dallas Cowboys remain in the hunt for the NFC East title and might be a team who could push for a Super Bowl this season. Some people are talking up quarterback Dak Prescott as an MVP candidate.
The Cowboys are also projected to be above the cap in 2024. They are currently projected at $16.1M above the cap, though that estimate goes to $21.4M once they get 51 players under contract.
The good news is that the Cowboys already have 48 players under contract, so once they sign players to futures contracts, they shouldn't have to make too many moves to get under the cap.
However, some of the moves they need to make are going to be significant. They are primarily based on extending certain players who enter the final year of their contracts. Let's start with those two considerations and then look at others.
Extend QB Dak Prescott: Back in 2020, the Cowboys used the franchise tag on Prescott, who then missed 11 games because of a dislocated right ankle. There are those who would go "tsk tsk" at Prescott because he chose to play under the tag rather than agree to a long-term extension.
However, the Cowboys finished 6-10, realized they were a better team with Prescott under center and were expected to tag him again. But before the 2021 league year began, Prescott and the Cowboys agreed to a four-year, $160M contract with $126M guaranteed. Prescott and his agent were reportedly seeking a four-year deal when the Cowboys wanted a longer contract.
Prescott enters the final year of that contract in 2024, in which he's due a $5M roster bonus and $29M base salary. The Cowboys added two void years to his contract for cap purposes at the time of his signing and, in 2022, restructured $18.4M of his base salary into a signing bonus.
An extension for Prescott would lower his $59.5M cap charge but the question is whether Prescott and his agent are in a rush to agree to such a deal. Given that Prescott got a four-year deal in 2021, it wouldn't be surprising if he seeks a similar length in a new deal.
If he agreed to an extension in 2024 and got four years, that would likely mean a practical three-year extension that keeps him under contract through 2027. If he doesn't, then gets a new four-year deal in 2025, he would be under contract through 2028. Either way, he might be in line for one more contract after that.
The Cowboys will no doubt try to get a deal done, because doing so would do a lot to help with cap space. And Prescott isn't the only player with an extension approaching.
Extend WR CeeDee Lamb: The 2020 wide receiver class had some quality prospects with Justin Jefferson emerging as the best of the class. However, Lamb has been very good as well. And Lamb enters the final year of his deal in 2024.
Lamb's fifth-year option in his first-round draft pick contract is worth nearly $18M. An extension would lower that number and help a lot in the Cowboys' quest to gain cap space.
With Lamb, it would be in the best interest for the Cowboys to get a deal done sooner than later. That's because there are several wide receivers who could draw plenty of interest in free agency and those players could raise Lamb's asking price.
There's also Jefferson, who could be in position to be one of the highest-paid receivers in the NFL. If Jefferson agrees to a deal first, that could also impact Lamb's asking price.
The Cowboys would no doubt want to get Lamb under contract for the next five years. But as with Prescott, Lamb and his agent might want a four-year deal instead. Considering that Lamb will be just 25 years old next season, he may prefer a deal that only ties him through 2027.
The two players mentioned represent the biggest decisions the Cowboys will have to make. But is there anything else the Cowboys can do to gain cap space? Let's see what may lie ahead.
Restructure CB Trevon Diggs: A torn ACL ended Diggs' season early and his cap number will be $16.25M. A restructure would likely tie the Cowboys to Diggs through 2025, but could still allow them to move on in 2026 if necessary. There would be a little risk with a restructure but the Cowboys might have to chance it.
Use void years to restructure EDGE Demarcus Lawrence: The edge rusher will enter the final year of his contract, which already had a void year in 2025 for cap purposes. The Cowboys could restructure his $10M base salary and use more void years to lower the cap number. Given Lawrence's age, though, he's probably not getting extended.
Cut WR Brandin Cooks: The Cowboys acquired Cooks in an offseason trade and he has been solid but not great. He's due just $8M in 2024 but the Cowboys might have to move on from him if they need cap space. However, his contract structures means the Cowboys gain just $4M in cap space with a straight cut.
Cut LB Leighton Vander Esch: The Cowboys have kept Vander Esch on value deals for a couple of seasons and he's due just $3M in 2024. However, the move might be necessary to give the Cowboys some cap space, which would be $2.5M as a straight cut.
What about extending EDGE Micah Parsons? While it's true that the Cowboys need to get a new deal done for Parsons at some point, an extension won't do much to lower his $5.4M cap charge. Obviously, the Cowboys will exercise Parsons' fifth-year option. But as far as an extension goes, it may not happen until other moves are finalized and the Cowboys know what their cap situation will look like.