Cowboys Free Up $66 Million in Cap Space Through Restructures

Jerry Jones says Dallas will spend more in free agency after creating significant salary cap flexibility.

Mar. 3, 2026 at 5:47am

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The Dallas Cowboys have restructured the contracts of several key players, including Dak Prescott, CeeDee Lamb, and Tyler Smith, to create $66 million in additional salary cap space. This move is part of a common NFL practice where teams convert base salaries into signing bonuses and add void years to spread out the cap hit. The Cowboys plan to use this newfound flexibility to be more active in free agency this offseason.

Why it matters

The NFL salary cap is often viewed as a hard limit on team spending, but in reality it is a more flexible tool that allows teams to maneuver around it through contract restructures and other mechanisms. This gives franchises like the Cowboys the ability to free up significant cap space to pursue free agents and build a competitive roster, even with high-priced stars already on the books.

The details

According to ESPN's Todd Archer, the Cowboys will restructure the contracts of quarterback Dak Prescott, wide receiver CeeDee Lamb, and offensive lineman Tyler Smith. This will create $66 million in additional cap space. Dallas is also working on restructuring the deals of defensive tackles Kenny Clark, Quinnen Williams, and Osa Odighizuwa. By converting base salaries into signing bonuses and adding void years, the Cowboys can spread out the cap hit over multiple seasons, freeing up room to be active in free agency.

  • The Cowboys announced the contract restructures on February 28, 2026.

The players

Dak Prescott

The Cowboys' starting quarterback, who is one of the highest-paid players at his position in the NFL.

CeeDee Lamb

A star wide receiver for the Cowboys who is entering the prime of his career.

Tyler Smith

An offensive lineman for the Cowboys who is a key part of their offensive line.

Jerry Jones

The owner and general manager of the Dallas Cowboys, who stated the team will spend more in free agency after creating this cap space.

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What they’re saying

“I would bet that we will spend more money in free agency than we have.”

— Jerry Jones, Owner and General Manager, Dallas Cowboys

What’s next

The Cowboys will now have significant cap flexibility to be active in free agency and sign new players to bolster their roster for the upcoming season.

The takeaway

The NFL salary cap is often viewed as a hard limit on team spending, but in reality it is a more flexible tool that allows franchises to maneuver around it through contract restructures and other mechanisms. This gives teams like the Cowboys the ability to free up significant cap space to pursue free agents and build a competitive roster, even with high-priced stars already on the books.