Cowboys’ Cap Situation Isn’t a Crisis - It’s a Calculated Plan
At first glance, the number jumps off the screen like a red flag: the Dallas Cowboys are reportedly $79.3 million over the salary cap. That’s the kind of figure that can send fans into a panic - and understandably so. But here’s the real story: there’s no need to hit the panic button in December when the NFL’s financial clock doesn’t start ticking until March.
That’s when teams must be cap-compliant, and the Cowboys - like every other franchise - will be. In fact, not only will Dallas get under the cap, but they’re in position to create over $100 million in cap space with a few strategic moves.
The so-called cap crisis? It's more like a cap opportunity.
Let’s break it down.
The Myth of Being “Over the Cap”
Being “over the cap” in December is like driving 70 on the highway and being told you’re speeding because there’s a 40-mph exit ramp a few miles ahead. You’re not breaking any rules - yet.
You’ll slow down when you need to. The NFL works the same way.
Teams don’t have to be under the cap until the new league year begins in March. So these big, scary numbers floating around right now?
They’re placeholders, not penalties.
And when it comes to navigating the cap, the Cowboys know what they’re doing. With a few restructures, extensions, and tough roster decisions, they can free up more than enough room to operate - and then some.
7 Moves That Unlock $110 Million in Cap Space
Let’s walk through the seven realistic steps Dallas can take to clear the decks and give themselves maximum flexibility heading into 2026.
1. Restructure Dak Prescott - Save $24 Million
Prescott, now 32, has a contract built with flexibility in mind. His current cap hit is a hefty $74 million, but by converting a chunk of his salary into a signing bonus and pushing money into future years, the Cowboys can bring that number closer to $50 million. It’s a common move for franchise quarterbacks, and one that makes sense here.
2. Restructure CeeDee Lamb - Save $18 Million
Lamb is 26, in his prime, and coming off another All-Pro caliber season. There’s no hesitation about committing to him long-term. A restructure of his current deal could drop his $38 million cap hit down to the low $20s - and he’s worth every penny.
3. Restructure Tyler Smith - Save $17.6 Million
Smith’s four-year, $96 million extension was always expected, and now it becomes a tool. By tacking on void years and converting salary into a bonus, the Cowboys can significantly reduce his cap hit in 2026. This is cap management 101 - and it works when you’re dealing with a young, cornerstone offensive lineman.
4. Extend Kenny Clark - Save $16 Million
Clark isn’t necessarily a long-term lock, but Dallas has options. Whether it’s adding voidable years or working out an actual extension, the goal is the same: lower his $21.5 million cap hit. Either route could save the Cowboys around $16 million.
5. Extend Quinnen Williams - Save $13.75 Million
Williams is another big-money player whose deal can be tweaked. A $30 million bonus and an extra year tacked on would allow the Cowboys to drop his 2026 cap hit to around $8 million. That’s a win for both sides.
6. Cut Trevon Diggs - Save $12 Million
This one’s tougher. Diggs has been an All-Pro talent, but his recent injury and off-field issues have created tension within the organization.
While the front office has kept the door open for his return, the writing may be on the wall. Cutting ties with Diggs would free up $12 million - and potentially clear a path for a fresh start on both sides.
7. Cut Terence Steele - Save $8.75 Million
Steele simply hasn’t lived up to the expectations that came with his extension. If the Cowboys decide to move on, they’ll pocket nearly $9 million in cap relief - and likely look to reinforce the offensive line through the draft or free agency.
Add It All Up: $110 Million in Flexibility
Those seven moves combine for $110.1 million in cap space. And that’s before accounting for any rollover from 2025 - where the Cowboys are currently sitting on about $20 million in available space.
With the cap projected to rise to around $295 million, Dallas isn’t just going to be compliant - they’re going to be agile. They’ll have room to re-sign key players, pursue free agents, and make the kind of bold moves that keep them in the championship conversation.
The Bottom Line
The salary cap isn’t a hard wall - it’s a puzzle. And the Cowboys have the pieces to solve it. So while headlines might scream “$79 million over,” the reality is far more nuanced - and far more optimistic.
By March, Dallas will be under the cap. And if they play their cards right, they’ll be sitting on one of the most flexible financial positions in the NFL.
The sky isn’t falling in Frisco. It’s just business as usual - and business is booming.