The 3 options the Cowboys have when it comes to Dak Prescott and his new contract extension.
The Dallas Cowboys must make a decision on Dak Prescott’s contract extension this offseason, which will be a topic of much discussion. There will be a variety of viewpoints on how it should be handled, as well as on his worth. The conversations will be endless, so we should get used to it.
For some of us, this ordeal is very straightforward. It appears that we already know what is on the horizon; the only question is when it will occur.
While we may think we know how it’s going down, we should try to keep an open mind and look at every possibility, and that is what we are going to do today. We have narrowed the Dak dilemma into three possible options for the Cowboys front office.
OPTION 1: SIGN HIM TO A NEW EXTENSION IN MARCH
The simplest way to take care of business is to just do the deed and get a new deal done before the start of the new NFL season, which begins on March 13th. The reason for this target date is that an extension would reconfigure Prescott’s contract and free up a large part of the $59.5 million cap hit that is currently on the books for this season.
Working a deal at that time would allow the Cowboys to be players in free agency as they would have money cap space to work with.
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For this to happen, both sides would need to reach a deal they are happy with. It’s important to note that Prescott’s price is his price. There isn’t any advanced business negotiation sorcery that is going to allow Jerry Jones to get him on a discount.
Prescott’s agent, Todd France, is going to get the best deal possible for his client. If they can reach an agreement that both sides are happy with, then Bazinga, the deal’s done, and we can put this whole thing to rest. If not, it’s time to move on to plan B.
OPTION 2: CONVERT BASE SALARY INTO BONUS AND EXTEND HIM IN SEPTEMBER
If the Cowboys and Dak can’t reach an agreement in March, it’s not the end of the world. The front office has another option accessible that will essentially accomplish the same objective while saving them some time.
The Cowboys can continue to do what they’ve done every year since Prescott signed his last contract: convert the majority of his base salary into bonus money. This is simply an accounting strategy to spread out the base salary over several years. Because Prescott’s contract includes two void years, the Cowboys may spread the entirety of his $29 million base salary across three years: 2024, 2025 (void), and 2026 (void).
This, along with other looming restructures, will give the Cowboys room to operate in free agency as you can see from the above image which players are occupying the most cap space at the moment.
Pulling the trigger on a Dak restructure could show that both sides are “too far apart” in negotiations and create the perception that the Cowboys are considering entering the season without giving Prescott a new deal. Prescott and his agent would need to decide just how comfortable they are playing another season without any future guarantees.
He’s coming off an MVP-caliber season right now where his stock is high. What’s it going to be a year from now when other variables enter the equation, which may include a drop off in play, another playoff disappointment, and the risk of injury to his soon-to-be 31-year-old body? These variables could be enough to push the sides close enough together to get a deal done in the final hours before Week 1 kicks off on the 2024 season.
OPTION 3: CONVERT BASE SALARY INTO BONUS AND DON’T EXTEND HIM
If the Cowboys convert the full amount of his $29 million basic pay into a bonus, this is what occurs…
The Cowboys’ 2024 cap hit from Dak decreases from $59.46 million to $40.93 million, saving up $18.53 million in salary space. That’s good news. The bad news is that the Cowboys will still be responsible for the remaining $55 million (of his original $160 million) divided over the two vacant years of his deal ($35 million in 2025 and $20 million in 2026). If they don’t extend Prescott, it will be a significant tax to pay for an asset who will play for another team after the 2024 season.
The Cowboys have the flexibility to delay an extension with Prescott until the fall and doing so will give them a full training camp with Trey Lance. When September rolls around, they will have a better sense of Prescott’s value to the team. Would they be comfortable transitioning to Lance and letting Dak walk after the 2024 season? Or would Lance’s skills bring too much doubt and force their hand to re-up on Prescott? These questions will be a lot easier to answer in the fall.
If Dak does not have a new contract by the start of the season, the Joneses will continue to say Prescott is still their guy and that they will revisit things in the offseason. This will be a poor attempt to avoid burning that bridge if Prescott lights up the league and has a fantastic 2024 season. However, rest assured that the damage will be done. If a deal is not reached by the start of the season, the relationship between Dak and the front office will most likely deteriorate, and Prescott’s contract demands would be massive next offseason, given that he holds all of the cards.
They can no longer franchise tag him to keep him off of the free market. A more likely possibility is Prescott taking matters into his own hands and waives his no-trade clause, allowing both sides to move on from the situation.
Do any of these options appeal to you? Is there another option we are overlooking? If so, please let us know in the comments.
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