There is a pay cap in place. But “Cap Hell” is mostly just that—a myth—as the Dallas Cowboys may be about to re-prove this summer as they try to figure out how to extend Dak Prescott’s contract while redistributing the money that is already promised to stars like Trevon Diggs, a great cornerback, and All-Pro guard Zack Martin.
With a total salary cap of $242 million for the 2024 season, the Cowboys are currently approximately $20 million “over the cap.” At first glance, that seems concerning. However, cap compliance is not required of teams until the NFL business year begins on March 13.
Additionally, there are well-defined routes to cap compliance (as there ought to be).
It all begins with Prescott and his impending cap charge of $59 million. Now Dallas is in compliance with the salary cap! They can sign him to a long-term deal that cuts that number by around $20 million, depending on the terms of the new deal.
According to ESPN, an additional $20 million in cap space may be created by simply renegotiating the contracts of Martin and Diggs, which involves a “flip of the switch” with stipulations already included in their current agreements.
Another option that should be relatively easy: signing CeeDee Lamb to a new deal. Lamb is about to enter a contract year where he is guaranteed a whopping $17.991 million. Would you mind paying Lamb $30 million annual percentage yield (APY) so he can reach the ranks of NFL greats like Tyreek Hill and Davante Adams? Actually, that would lessen his cap hit, freeing up $11 million for Dallas.
A transition has occurred as ESPN reports that Terence Steele, a right tackle, would be undergoing a restructuring. In order to save nearly $10 million more, we have considered releasing receiver Michael Gallup after June 1.
Things like “voidable years” are essentially the same as using a credit card; at some point, the payment will be required.
On top of that, additional substantial costs will arise. Dallas has been losing around $4 million per year due to the play of defensive standout Micah Parsons. He may now seek a contract extension and will almost certainly want to join Nick Bosa, Aaron Donald, and TJ Watt as the highest-paid defensive player in NFL history. With an annual percentage yield of $30 million, that becomes a substantial sum.
March is when the Cowboys will be subject to the cap, under the law. With a new Dak agreement in the works, they should be able to field a competitive team.