Contractual Complexities Surrounding Cowboys’ Stars
OXNARD, Calif. — The Dallas Cowboys find themselves in a notably intricate situation regarding the contracts of three of their standout players: quarterback Dak Prescott, wide receiver CeeDee Lamb, and linebacker Micah Parsons. Each player is at a different stage of contract negotiations, creating a web of interconnected considerations for the Cowboys. If the franchise is successful in extending all three contracts, they would be managing three athletes who could rank among the highest-paid in their respective positions—if not the highest—simultaneously.
As the team navigates these negotiations, they must remain acutely aware of the salary cap implications that will arise from maintaining this trio in Dallas for the long term. After gathering insights during this week’s training camp, here’s what we’ve learned from league sources:
Dak Prescott
Starting with Dak Prescott, it’s clear that he’s had an impressive training camp, showcasing his skills particularly during Monday’s practice. The Cowboys are pleased with Prescott’s focus, as he has managed to put aside the business aspects of his contract while performing at a high level.
However, the financial side presents unique challenges. Prescott is currently playing in the final year of a four-year, $160 million contract. His extension talks are complicated by the fact that he is set to earn $29 million in cash this season, but his cap hit could reach approximately $55 million due to prior restructures and void years.
Extending Prescott would mean pushing more dead money into future years, posing a significant hurdle from a salary cap perspective. It’s noteworthy that Prescott is one of 19 quarterbacks earning over $30 million annually, yet none have signed a second substantial extension with their current teams. This context is crucial given the potential dead-money implications.
Among the 16 QBs averaging at least $40 million a year, Prescott, at 31, is one of only four who are over 30. While the average salary for franchise quarterbacks has skyrocketed to around $50 million—if not higher—none of the eight quarterbacks at this level have crossed the 30-year threshold. This trend will likely influence negotiations.
Prescott has watched quarterbacks with less impressive statistical records exceed his current contract value, and the new benchmark has now risen to $55 million annually. As a result, he is seeking a figure above this mark, which is within his rights as a player. From a cap standpoint, allowing Prescott’s contract to expire after the season could make more financial sense, eliminating $26 million in dead money. However, such a strategy could backfire, especially with competing teams eager to make lucrative offers that could surpass historical records.
While Prescott would appreciate a contract that reflects current market value, he is also aware that patience could pay off in the end. The Cowboys are eager to keep him on board for another long-term deal, which is why they are pushing for an extension before he potentially explores free agency.
CeeDee Lamb
Negotiations concerning CeeDee Lamb appear to be advancing more swiftly. The wide receiver has communicated to the Cowboys that he will not report to training camp without a new contract. Currently, he is playing under the fifth-year option of his rookie contract, which is valued at $17.991 million.
According to the collective bargaining agreement, the Cowboys could impose fines of $40,000 per day for Lamb’s absence; however, they are likely to waive these penalties upon finalizing a new deal since he remains under his rookie contract.
Last season, Lamb led the NFL with 135 receptions, finished second in receiving yards with 1,749, and tied for third in touchdown catches with 12. Having been selected as the No. 17 pick in the 2020 draft, Lamb has consistently improved his performance each year.
With the recent contracts of Justin Jefferson ($35 million annually) and A.J. Brown ($32 million), it’s evident that Lamb’s new deal would exceed $30 million annually, potentially making him the fifth member of the elite $30 million club. The challenge lies in determining a fair midpoint between Jefferson’s lucrative deal and Brown’s contract. Jefferson is often regarded as the best receiver in the league, securing his deal with a franchise that had a quarterback on a rookie contract. Conversely, Brown secured his contract after quarterback Jalen Hurts signed a substantial deal.
Given this context, the Cowboys appear hesitant to match Jefferson’s average salary per year (APY) for Lamb. Instead, they may consider increasing the guaranteed money. Jefferson’s four-year, $140 million contract includes approximately $88.7 million fully guaranteed (about 63 percent), while Brown’s three-year, $96 million extension has $51 million fully guaranteed (around 53 percent). A potential compromise could involve a four-year deal worth between $30 million and $32 million annually, with guarantees around 63 percent.
Micah Parsons
Micah Parsons’ contract situation is currently on the back burner, but it is not forgotten by the Cowboys. He is entering the fourth year of his rookie contract and has already had his fifth-year option exercised for 2025. The focus on Prescott and Lamb has delayed serious discussions about Parsons’ extension, but the Cowboys are aware that waiting could be costly as Parsons’ market value continues to rise, particularly if he has another standout season.
At just 25 years old, Parsons has demonstrated remarkable consistency, recording 40.5 sacks over his first three seasons. His unique athleticism as a second-level linebacker sets him apart from his peers. The Cowboys are unlikely to undervalue Parsons, as they recognize his importance to the defense.
The benchmark for elite edge rushers was set last year when San Francisco 49ers’ Nick Bosa signed a five-year, $170 million contract with $88 million fully guaranteed. This establishes a target of around $34 million annually, although there is a perception that Bosa might currently be considered the superior player. Nonetheless, if Parsons remains healthy and continues to perform at a high level, he could justifiably seek a contract comparable to Bosa’s, especially with the ongoing inflation of player salaries.
The Cowboys face the reality that they need to navigate these negotiations carefully. With Prescott’s situation taking precedence and Lamb currently absent from camp, the organization must prioritize its approach to contract discussions.
In conclusion, it’s feasible to imagine a future where the Cowboys boast the league’s highest-paid quarterback, a top-tier receiver, and potentially the highest-paid defensive player. However, the challenge lies in managing the financial implications of retaining these premium talents on the roster.
(Photo of CeeDee Lamb and Micah Parsons: Richard Rodriguez / Getty Images)
