Dak Prescott Contract Loophole: No Need for Cowboys to Extend QB

Cowboys navigate complex contract, draft challenges ahead.

by Nouman Rasool
Dak Prescott Contract Loophole: No Need for Cowboys to Extend QB
© Richard Rodriguez/Getty Images

In a strategic twist for the Dallas Cowboys, it appears extending quarterback Dak Prescott might not be as pressing as once believed, thanks to a unique contract structure. As reported by Michael Gehlken of The Dallas Morning News, the Cowboys have more leverage than assumed due to a loophole in Prescott's current deal.

Prescott's four-year, $160 million contract, signed in 2021, includes two voidable years (2025 and 2026). This arrangement allows the Cowboys to convert a portion of Prescott's salary into a signing bonus, effectively reducing his cap hit and increasing financial flexibility.

Last offseason, Dallas employed this strategy, and repeating it could lower Prescott's 2024 cap number from a hefty $59.46 million to a more manageable $40.93 million, thereby freeing up $18.53 million in cap space. While this maneuver is shrewd, Dallas is likely to pursue an extension with Prescott.

According to Over The Cap, an extension could save even more cap space - approximately $26.32 million. Currently, the Cowboys are projected to be $19.74 million over the cap, making fiscal maneuvering essential.

Dallas' Draft Dilemma

Drafting a replacement for Prescott is not a viable option for the Cowboys, either.

Holding the 24th pick in the 2024 NFL Draft limits their access to top-tier quarterback talent. Furthermore, maintaining a positive relationship with Prescott is crucial. His contract includes a no-franchise-tag clause, preventing the Cowboys from tagging him if he hits free agency in 2025.

There's also a no-trade clause, giving Prescott significant control over his career trajectory. At 30 years old, Prescott is in the prime of his career and coming off an impressive season. In 2023, he led the league with 36 touchdown passes, ranked second in QBR at 72.7, and third in passing yards with 4,516, all over 17 games.

Despite a less-than-stellar playoff record of 2-5, Prescott's consistency and leadership provide stability for the Cowboys. Cowboys head coach Mike McCarthy recently expressed unwavering support for his quarterback, stating, "I believe in Dak Prescott.

He's clearly the answer and part of the solution moving forward. As difficult as this time is right now, we'll continue to build off what he brings to the table." This contract situation underscores the Cowboys' flexibility in managing their roster and cap space, while also highlighting the value they place on Prescott's role within the team.

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