Dallas Cowboys' Jerry Jones pushes back on Dak Prescott contract extension, opens door to 2025 exit

Credit: Kyle Terada-USA TODAY Sports

Dallas Cowboys quarterback Dak Prescott currently has the second-largest cap hit in 2024 among all NFL players. While a contract extension would significantly reduce that number and keep the MVP candidate in Dallas for years to come, it appears that a long-term deal is no longer a certainty.

Prescott, coming off a career-best season, holds significant leverage over Dallas. The team would need to sign him to an extension to significantly lower his cap hit and failing to do so risks him leaving in NFL free agency next year. The Cowboys also can’t trade him or franchise tag him, providing Prescott with significant negotiating power.

Dallas Cowboys cap space 2024: -$10.603 million

That’s why most have viewed it as a foregone conclusion that Prescott would receive an extension this offseason, once again making him one of the highest-paid NFL players. However, that may no longer be the case in Dallas.

Speaking to reporters at the NFL Combine, Cowboys’ owner Jerry Jones left the door open to Prescott not receiving a contract extension this year and having to play out the final season of his contract.

“We don’t need to [extend Prescott’s deal], but we can if everybody wants to solve it. You can get in and get on the same page and see if you can come to an agreement. If you can’t, what we have in place works. And so obviously, if you do it one way, you’ll be working through some of the other areas on the team in a different way, but you can’t really plan on that until you see when you’re there.”
Dallas Cowboys owner Jerry Jones on the Dak Prescott contract, possible extension

Dak Prescott contract: $59.455 million cap hit in 2024, 2025 NFL free agent

Why Dak Prescott has leverage over the Cowboys

Jones is correct that the team doesn’t have to extend Prescott’s contract. It could restructure his existing deal, freeing up $18.52 million in immediate cap space. However, that also comes with a long-term cost.

A simple contract restructure would also mean Dallas is left with a $36.385 million cap charge when Prescott is off the roster in 2025 with another cap hit of $20-plus million in 2026, per OverTheCap.com. In that scenario, Prescott could maximize his leverage even further by hitting the open market with the Cowboys unable to tag him next year.

Jones may be downplaying the team’s interest in a contract extension to create his own leverage, but Dallas has limited options either. If the team restructures his contract, Prescott would have even more control over negotiations in 2025 with larger dead-cap hits if he leaves. Ultimately, an extension is in the best interest of both parties.