Cowboys Restructure Prescott, Lamb, and Smith Contracts to Free Up Salary Cap Space

The Dallas Cowboys have taken significant steps to ensure they are compliant with the NFL’s 2026 salary cap by restructuring the contracts of three key players — quarterback Dak Prescott, wide receiver CeeDee Lamb, and offensive lineman Tyler Smith. This move has freed up approximately $66 million in salary cap space, helping the team get under the cap with just one week to spare before the start of the 2026 league year.

How the Restructures Work

Before the restructuring, the Cowboys were approximately $55 million over the cap, a difficult position to be in just days before the new league year begins on March 11. To create cap space, the Cowboys restructured the contracts of their star players by converting a large portion of their base salaries into signing bonuses. This allowed the team to spread the salary cap hit over future years.

Here’s a breakdown of the new contract terms:

• Dak Prescott: Prescott’s base salary for 2026 dropped from $40 million to just $1.8 million, significantly reducing his cap hit. His 2026 cap hit is now $43.7 million, down from the previous figure.

• CeeDee Lamb: Lamb’s base salary also decreased to about $1.7 million, lowering his cap hit for 2026 to $20 million.

• Tyler Smith: Smith’s base salary was similarly reduced to around $1.7 million, bringing his 2026 cap hit down to $11.2 million.

Long-Term Implications

While these moves have provided immediate salary cap relief for the Cowboys in 2026, they have also pushed more significant cap hits into future years. In 2027, Prescott’s cap hit will jump to nearly $76 million, Lamb’s will rise to $46.2 million, and Smith’s will climb to $19.5 million.

These increased cap hits in 2027 mean that the Cowboys will have to manage their cap carefully in the coming years, especially as they continue to build their roster for a championship run.

Further Moves to Free Up Cap Space

Cowboys owner and general manager Jerry Jones has indicated that this won’t be the end of their cap restructuring efforts. Jones mentioned that the team plans to restructure contracts for defensive tackles Kenny Clark, Osa Odighizuwa, and Quinnen Williams in the coming days to create even more cap space for the 2026 season.

Jones also made it clear that the team plans to be active in free agency, saying, “I would bet that we will spend more money in free agency than we have. I want you to know that the only way to push more is for me to go borrow some of my future, OK? Expect me to go borrow some of my future.”

George Pickens and the Franchise Tag

The Cowboys also placed the franchise tag on George Pickens this offseason, which currently accounts for $27.3 million against their 2026 salary cap. However, that figure could be reduced if the Cowboys manage to negotiate a long-term extension with Pickens, which would help create additional cap room.

Current and Projected Cap Space

As of March 4, the Cowboys have $8.5 million in available cap space, ranking 18th in the league in terms of salary cap space heading into the new season. With the start of free agency fast approaching, the team has a narrow window to finalize its moves and ensure it is well-positioned to make a splash in the offseason.

Conclusion: A Short-Term Fix with Long-Term Consequences

While the Cowboys’ decision to restructure the contracts of Prescott, Lamb, and Smith provides essential salary cap flexibility for the 2026 season, it also sets up major financial challenges down the road, particularly in 2027. The team will need to balance its short-term needs with long-term cap management as it prepares to make additional moves in free agency and the draft. For now, the Cowboys have secured the space they need to stay competitive in 2026, but the road ahead will require careful planning to manage their future financial commitments.