Let's be honest: looking at the Dallas Cowboys salary cap right now feels a bit like looking at a credit card statement after a very long, very expensive vacation. It’s messy. It’s intimidating. And if you believe some of the headlines floating around this January, it’s a total disaster.
Currently, as we stare down the barrel of the 2026 offseason, the Cowboys are sitting roughly $31 million to $35 million over the cap. That’s the "paper" reality. If the season started tomorrow, Jerry Jones would have to start cutting stars just to let the bus leave the Star in Frisco.
But here’s the thing about the NFL—the cap is sorta like a suggestion until it’s a rule.
Every year, fans freak out about "Cap Hell," and every year, the front office finds a way to shuffle the deck. For Dallas, 2026 isn't actually about being broke; it’s about timing. Between Dak Prescott’s massive contract, the fallout from the Micah Parsons trade to Green Bay, and the soaring market for wide receivers, the math is tricky.
But it's definitely solvable.
The $74 Million Problem: Dak’s Massive Hit
You can't talk about the Dallas Cowboys salary cap without talking about Number 4. Dak Prescott is currently carrying a cap hit for 2026 that is, frankly, eye-watering: $74,068,430.
That is roughly 24% of the entire team’s projected budget.
It’s the highest cap hit in the league this year, even edging out Lamar Jackson. Now, before you start calling for a trade, you've got to realize that the Cowboys designed the contract this way on purpose. They gave him a low hit in 2024 and 2025 to keep the window open, knowing they’d eventually hit this wall.
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The fix? It’s almost certainly a restructure. By converting a huge chunk of Dak's $40 million base salary into a signing bonus, Dallas can "spread" that hit over the remaining years of his deal and added void years.
Basically, a single pen stroke on Dak’s contract could wipe out $31 million of that deficit instantly. Is it "kicking the can down the road"? Absolutely. But in Jerry World, the road is long, and the can is very heavy. If they don't restructure Dak, they can't sign a draft class, let alone a free agent. It's a non-negotiable move.
Where the Money Goes (and Where It Comes From)
The Parsons trade last season changed everything. Seeing Micah in a Packers jersey still feels wrong to most of Dallas, but from a purely business perspective, it cleared a massive amount of future "guaranteed" stress. Still, the Cowboys are paying for the past.
For example, the team is losing $16.4 million in 2026 just from Zack Martin’s old void years. That’s "dead money"—cash being paid to the cap for a player who isn't even on the active roster.
To get back into the black, Stephen Jones and Will McClay are looking at these primary levers:
- CeeDee Lamb: A restructure here could save about $19 million.
- Tyler Smith: Moving money around on the All-Pro guard's deal adds another $17.6 million.
- Quinnen Williams: He’s been a beast on the interior, but his $14.5 million cap savings via restructure is too juicy to ignore.
- Terence Steele: This is the one fans are watching. Designating Steele as a post-June 1 cut would free up $14 million.
If you do the math—real, "not-scary" math—Dallas can actually swing from $30 million over the cap to having over **$100 million in functional space**.
It sounds like magic. It’s just accounting.
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The "All-In" Mirage vs. Reality
We heard Jerry say "all-in" last year, and then we watched a relatively quiet free agency. People got mad. But 2026 feels different because of the looming 2025 rollover.
The Cowboys didn't spend every penny last season. They have roughly $20 million to $22 million in unused cap space that rolls over into this year. When you add that to the natural rise of the NFL salary cap—which analysts expect to hit around $303 million to $311 million per team this year—the "hole" starts to look more like a small puddle.
However, there are limitations. You can’t just restructure everyone forever.
Every time you move money to the future, you're making 2027 and 2028 harder. Dak’s cap hits in those years are already projected at $76M and $78M. If you keep pushing, you eventually hit a year where you have to pay the bill, and that’s usually when a team has to undergo a "hard rebuild."
Key Priorities for Re-signing
The Cowboys aren't just trying to get under the cap; they have to keep their own guys.
- Brandon Aubrey: The best kicker in the league is a restricted free agent. He’s going to cost north of $6 million a year, which is a lot for a kicker, but he's basically a cheat code.
- Osa Odighizuwa: He’s a core piece of the defensive line. A restructure/extension here saves $12 million while keeping a home-grown talent.
- Jake Ferguson: He’s Dak’s favorite safety valve. His $5 million cap hit is a bargain, but an extension could lower that number even further.
Why Fans Shouldn't Panic
I know, it's the Cowboys. Panicking is what we do. But the Dallas Cowboys salary cap is actually in a much healthier spot than, say, the Cleveland Browns or the New Orleans Saints.
The Saints are often $80 million over the cap and find a way to function. Dallas is only $30 million over with a massive amount of "easy" restructures available.
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The real question isn't "Can they get under the cap?" The question is "What will they do with the space?"
In the past, the front office has been "cap-compliant" but "cash-poor," meaning they didn't want to write the big checks for signing bonuses. But with the pressure mounting on the current coaching staff and Jerry Jones getting older, the word around Frisco is that they might actually be aggressive in the second tier of free agency this time around.
How to Track the Progress This Offseason
If you want to keep an eye on how this shakes out, watch for these specific milestones:
- Mid-March: This is when Dak’s roster bonus usually triggers. If a restructure hasn't happened by then, that’s when you start to worry.
- The June 1st Marker: Watch for the Terence Steele news here. If he’s still on the roster after June 1, it means they couldn't find a better option at Right Tackle and are biting the bullet on his salary.
- Draft Day: The Cowboys love to use the draft to replace expensive veterans. If they go heavy on offensive line early, it's a signal that more veteran cuts are coming.
Honestly, the "Cap Hell" narrative is mostly for clicks. Dallas has the most valuable franchise in sports and a front office that, for all its flaws, is actually very disciplined with the books. They aren't going to lose CeeDee Lamb or Dak because of the cap. They might lose them because of chemistry or performance, but the money is always there if they want to spend it.
To stay ahead of the game, focus on the effective cap space—which is what’s left after you account for the draft class and the 51-man roster. Right now, that number is ugly, but by the time the first preseason game kicks off, expect Dallas to have $15-20 million in "emergency" room to spare.
The strategy is simple: pay your stars, squeeze the middle of the roster, and hope the rookies outplay their cheap contracts. It’s the Cowboys way. It’s been the way for twenty years. And 2026 is going to be more of the same, just with bigger numbers.
Next Steps for the 2026 Offseason:
- Monitor the Restructure Tracker: Check sites like Spotrac or OverTheCap specifically for the "Dak Prescott Restructure" notification; this is the domino that must fall first.
- Watch the Post-June 1 Cut List: Keep an eye on Terence Steele and Malik Hooker. Their status will tell you exactly how much "walking around money" the Cowboys will have for late-summer free agent signings.
- Audit the Dead Money: Look for how much the team is paying players like Zack Martin who are no longer on the field. If that number exceeds $40 million, the Cowboys will be forced to play more "minimum wage" players at depth positions.