The Dallas Cowboys will make multiple moves to set the stage for active free agency

The Dallas Cowboys are gearing up for free agency with multiple contract-related moves.

Mauricio Rodriguez — Dallas Cowboys News Writer
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A lot has been made about the Dallas Cowboys being in the red when it comes to the 2026 salary cap. With three simple moves, and without losing a single player, they’re now about to be under the cap.

And more cap space is coming. Let’s break it down.

Cowboys create $66 million in cap space

The Cowboys will restructure three major contracts to create $66 million in cap space, according to ESPN’s Adam Schefter:

  • QB Dak Prescott
  • LG Tyler Smith
  • WR CeeDee Lamb

The news shouldn’t surprise anyone. Before the restructures are made official, Prescott’s cap hit is currently at $74 million. Lamb’s is north of $38 million.

While we don’t know what the final numbers will be just yet, it’s clear the Cowboys had to do something. It’s also evident this was the plan from the start, and the contracts were always designed for these restructures to happen.

Salary cap update

According to Over the Cap, the Cowboys are currently $56.13 million over the cap. The moves laid out above would place them at $9.87 million under the cap.

More moves could be coming for the Cowboys, too.

Co-owner Stephen Jones pointed to the defensive tackle room as an opportunity to create more room. Osa Odighizuwa, Kenny Clark, and Quinnen Williams make up three of the team’s seven largest cap hits. Combined, they’re set to count over $60 million in cap space.

Cowboys aiming to spend more

The Cowboys talked about “busting the budget” earlier in the offseason and they keep alluding to approaching the offseason in aggressive fashion. According to Jerry Jones, the Cowboys will spend more than usual in 2026.

“I would bet that we will spend more money in free agency than we have,” Jerry Jones told reporters at the NFL Scouting Combine.

These moves are a part of such efforts, but more will be needed. With a ton of needs on defense, Dallas needs a lot more than $9 million in cap space to turn around the roster. Extending George Pickens would provide cap relief, but the Cowboys are showing no urgency on that front.

We’ll see what other avenues they use to create more cap room ahead of the 2026 NFL season.

A reminder on restructures

A restructure isn’t a pay cut. Instead, it’s a “conversion” of salary into a signing bonus. Per the NFL’s bookkeeping rules, salary must count toward the same year’s salary cap. A signing bonus, however, can be prorated over the length of the contract.

Nothing really changes for the player. The cash hits the player’s pockets just the same, but it goes in the books in a more team friendly way. In other words, the Cowboys are sacrificing tomorrow’s cap space for the sake of today’s.

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