Cowboys Restructure Dak Prescott's Contract, Boost Cap Space

Moves allow team to retain two key defensive players

Published on Mar. 6, 2026

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The Dallas Cowboys have restructured quarterback Dak Prescott's contract, creating $8.5 million in additional salary cap space. The team quickly used that cap room to tender exclusive rights free agents, cornerbacks Josh Butler and Reddy Steward, keeping the two defensive players in Dallas.

Why it matters

Prescott's contract restructure gives the Cowboys more financial flexibility to retain key players and build their roster for the upcoming season. Keeping Butler and Steward, both important pieces of the Cowboys' secondary, is a priority as the team looks to improve on defense.

The details

The Cowboys converted a portion of Prescott's 2026 base salary into a signing bonus, spreading out the cap hit over the remaining years of his contract. This maneuver freed up $8.5 million in cap space, which the team immediately used to tender one-year deals to cornerbacks Josh Butler ($1.075 million) and Reddy Steward ($1.005 million), who were exclusive rights free agents.

  • The contract restructure occurred on March 6, 2026.
  • The Cowboys tendered the exclusive rights free agents on the same day as the Prescott restructure.

The players

Dak Prescott

The Dallas Cowboys' starting quarterback, who has been with the team since 2016.

Josh Butler

A cornerback for the Dallas Cowboys, who was an exclusive rights free agent.

Reddy Steward

A cornerback for the Dallas Cowboys, who was an exclusive rights free agent.

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What they’re saying

“We must continue to build around our core players, and Dak is obviously a huge part of that. This restructure gives us the flexibility to keep important pieces of our defense in place.”

— Jerry Jones, Owner, Dallas Cowboys (Dallas Morning News)

What’s next

The Cowboys will now turn their attention to the upcoming NFL Draft, where they will look to further strengthen their roster and address any remaining needs on both offense and defense.

The takeaway

The Cowboys' ability to restructure Prescott's contract and retain key defensive players demonstrates their commitment to building a well-rounded team capable of competing for a championship. This offseason move provides the team with more financial flexibility to make additional roster improvements.