Take a closer look at the Cowboys’ cap situations for 2024 and 2025

It’s a terrible feeling to wake up in Week 3 and think that the team you’ve dedicated your sporting life to is already dead in the water. Make no mistake; The Cowboys are better than what they showed in their 44-19 loss to the New Orleans Saints on Sunday.

The club has a new defensive coordinator and a new system that is notoriously difficult to learn. The Stars didn’t play at all on either side of the ball in the preseason, and they were missing one of their only two proven passing weapons, and their backup players injured them on multiple occasions. But these excuses do not alleviate the feeling that this team must have perfect circumstances to emerge victorious at the end of the season, and that it is not perfect here.

Even though the NFC East looks extremely winnable and teams from San Francisco and Detroit are within reach, the more than likely outcome is that Dallas will turn things forward in 2025 rather than try to push things back. Fortunately, the salary cap outlook for something like this is actually quite promising in this regard. Unfortunately, it’s just not the team’s track record.

Joey Ickes, a good friend and former Cowboys Wire contributor, spent the summer kicking Jerry Jones in the face because the richest sports organization in the world was at the bottom of the list when it came to spending money on players. The grumbling became so loud that after signing CeeDee Lamb and Dak Prescott late in the summer, Jones told some falsehoods about Dallas spending more money on players than any other team. In reality, the top two contracts only landed Dallas 13th overall.

But even if the Joneses make an effort to strengthen the two offensive stars, it still paints a great picture for the club, even if numerous gaps become available in the near future.

Remaining 2024 cap space: $25,482,263

FRISCO, TEXAS – JANUARY 8: (LR) Executive Vice President Stephen Jones of the Dallas Cowboys, head coach Mike McCarthy of the Dallas Cowboys and Dallas Cowboys owner Jerry Jones speak to the media during a press conference at the Ford Center at The Star on 8 . January 2020 in Frisco, Texas. (Photo by Tom Pennington/Getty Images)

According to Over the Cap, Dallas currently has the seventh-most available cap space for this season. Prescott’s reduction in base salary, less the signing bonus allotment, resulted in approximately $11 million in savings this season. Lamb, whose entire $17.99 million fifth-year option counted against the cap before his new contract, now counts just $8.75 million against the cap.

This gives Dallas the opportunity to trade high-paying players who become available. However, most likely this will only be used to replace injured players as the team signs players off the road when needed. Whatever remains will be added to next year’s cap as set forth in the CBA.

2025 projects limit the space

OTC predicts the cap will rise by around $17 million to $272.5 million by 2025. Dallas currently has 39 players under contract with a cap hit of $269 million (including dead money). That doesn’t leave much wiggle room until the other factors are taken into account.

That $3.5 million in space increases if it brings in the entire $25.5 million in unused space in 2024. Now Dallas expects the space to be around $29 million, but it goes much higher.

2025 restructuring that creates more space

CLEVELAND, OHIO – SEPTEMBER 8: Dak Prescott #4 of the Dallas Cowboys reacts before a game against the Cleveland Browns at Cleveland Browns Stadium on September 8, 2024 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)

Prescott’s deal calls for a base salary of $47.75 million in 2025. He will get the money, but there is an obvious reason why his four-year extension included another four invalid years until 2032. The Cowboys will pull the restructuring lever and move the majority of his base salary in five-year installments.

To keep the books clean, we assume his 2025 base salary will be reduced to $2.75 million and $45 million will be converted into a restructuring bonus. This amount will be distributed each year, from 2025 to 2029, at the rate of $9 million per year.

Now his 2025 cap hit drops from $89.9 million to $63.9 million, a savings of $36 million.

Lamb’s deal is similar. Reduce his base salary from $26.85 million to $1.85 million and spread that $25 million over five years, shaving $20 million off the 2025 cap hit.

Combined, that’s another $56 million in space, on top of the $29 million they already have.

Dallas now has $85 million worth of space to work with.

2025 needs

Remember when roster size was discussed earlier. Of course, just having 39 players under contract is not enough. The minimum amount Dallas needs to spend to complete its roster is around $18 million. So imagine Dallas being able to spend $67 million on talent above replacement level.

Zack Martin, DeMarcus Lawrence, Osa Odighizuwa and Jourdan Lewis are the most likely candidates to be brought back by their impending free agents.

The Micah Parsons situation

However, there is another caveat that will likely give Dallas even more wiggle room. Defensive end Micah Parsons will find himself in the same situation Lamb found himself in this offseason. His fifth-year salary is $21 million and he will become the highest-paid non-quarterback. Even with this extension, his 2025 cap hit will likely drop to $10 million or less, freeing up another $11 million worth of cap space.

This will effectively take Dallas below the $100 million mark and begin its spending spree; unless they extend one of their pending free agents or trade for veterans during this campaign.