The Dallas Cowboys are one of the most iconic franchises in the NFL, known not only for their storied history but also for their business acumen. Under the ownership of Jerry Jones since 1989, the Cowboys have become a financial powerhouse, setting records for revenue generation and profitability. Their salary cap structure and player contracts are critical components in maintaining both competitive and financial success.
In this article, we will analyze the Cowboys’ player salaries, exploring their cap management strategies, the impact of key contracts, and how these factors influence the team’s performance on and off the field. We will also assess how salary allocation has changed over time and discuss some of the challenges the Cowboys face in managing their finances.
Salary Cap Structure: Understanding the Basics
The NFL operates with a salary cap system that limits the total amount a team can spend on player salaries in a given year. The salary cap is set annually by the NFL, based on league revenues, and it applies to all 32 teams. For the 2024 season, the salary cap was approximately $224.8 million, up from $208.2 million in 2023.
A critical aspect of the salary cap is the concept of “dead money,” which refers to money that counts against the cap for players who are no longer on the roster. This can arise from the release of a player, the renegotiation of contracts, or the trade of a player with remaining guaranteed money.
Dallas Cowboys’ Salary Cap Management
The Dallas Cowboys are often regarded as one of the most financially savvy teams in the NFL. While the franchise has spent big money on star players over the years, they have also employed a strategic approach to managing cap space and avoiding long-term cap issues.
In 2023, the Cowboys ranked among the top 10 in terms of total salary expenditures. However, unlike some other teams that have been forced into “cap hell” due to large, unmanageable contracts, the Cowboys have generally been able to balance their salary structure, even while maintaining a competitive roster.
Key Players and Their Contracts
When analyzing the Cowboys’ player salaries, it’s essential to focus on the key contributors and their contracts. Below are some of the highest-paid players and their impact on the team’s salary cap.
Dak Prescott – Quarterback
Dak Prescott is undoubtedly the face of the franchise, and his contract has a significant impact on the Cowboys’ salary cap. In 2021, Prescott signed a four-year, $160 million extension that included a signing bonus of $66 million and an average annual salary of $40 million. This contract made Prescott one of the highest-paid quarterbacks in the league.
As of 2024, Prescott’s cap hit for the Cowboys is approximately $49 million, making him the highest-paid player on the team in terms of cap space. However, while this number is large, the Cowboys have structured his contract in a way that allows for flexibility in the short term. For example, in 2024, Prescott’s base salary is only $5 million, but he will receive a sizable roster bonus and guaranteed payments that inflate his overall cap hit.
Despite Prescott’s large contract, the Cowboys have managed to surround him with talent. The cap hit is spread out over several years, allowing for opportunities to rework deals or add players to bolster the roster.
Micah Parsons – Linebacker
Micah Parsons, drafted by the Cowboys in 2021, quickly emerged as one of the most dominant defensive players in the NFL. As of 2024, Parsons is still on his rookie contract, which is structured with a low base salary in the first few years, and the potential for significant earnings in the form of bonuses and incentives.
Given his explosive performance, Parsons will likely be in line for a massive contract extension once his rookie deal expires after the 2024 season. The Cowboys will have to allocate substantial cap space to retain him, but they are currently benefiting from having him on a cost-controlled rookie contract, which helps them manage other financial obligations.
Zeke Elliott – Running Back (Past and Present)
Ezekiel Elliott was once the face of the Cowboys’ offense and was the highest-paid running back in the NFL when he signed a six-year, $90 million extension in 2019. However, after a series of inconsistent seasons and the growing trend of devaluing running backs in the NFL, the Cowboys released Elliott before the 2023 season.
Elliott’s contract had a significant impact on the Cowboys’ salary cap, as much of the guaranteed money was front-loaded, and his contract contained a large amount of dead money after his release. While the Cowboys saved money by moving on from Elliott, the team still faced challenges related to the dead money from his deal.
Cap Management Strategies: The Jerry Jones Way
Jerry Jones, the owner and general manager of the Cowboys, has shown a particular ability to navigate the complex world of salary cap management. He frequently structures contracts in a way that allows the team to avoid major short-term cap problems while still competing at a high level.
One key strategy that the Cowboys use is the conversion of base salaries into signing bonuses. This technique spreads out cap hits over the length of a player’s contract, allowing teams to free up space in the short term while retaining the player for the long haul. For example, a player like DeMarcus Lawrence has had his contract restructured multiple times, with large portions of his salary converted into bonuses. This strategy can be a double-edged sword, though, as it can lead to a situation where the team faces substantial cap charges in later years.
Another important element in the Cowboys’ salary cap management is their use of “void years.” These are additional years added to a contract (often for cap purposes) that allow the team to spread out bonuses, but the void years do not actually constitute playing years. This has allowed the Cowboys to create additional flexibility in their cap situation.
Trends in Player Salaries
Over the years, the landscape of player salaries in the NFL has shifted. The salary cap itself has increased significantly, but this has not necessarily translated to a proportionate increase in spending on all positions. Quarterbacks continue to dominate the highest-paid player lists, but the Cowboys have also been willing to pay top dollar for other key positions.
- Quarterback Salaries: As mentioned earlier, Dak Prescott’s contract is one of the largest on the team. The trend of paying quarterbacks elite-level money has only intensified in recent years, with quarterbacks like Patrick Mahomes, Josh Allen, and Deshaun Watson all securing massive deals. The Cowboys have been willing to give Prescott top-tier money, but they’ve managed to build a competitive team around him.
- Defensive Stars: Micah Parsons is the next player in line for a huge contract, but the Cowboys have also been willing to pay for other top-tier defensive players, such as DeMarcus Lawrence. The team’s defense has been a strong suit in recent years, and it has been crucial to the Cowboys’ competitive success.
- Running Back and Wide Receiver Contracts: Running backs like Ezekiel Elliott have seen their salaries decrease across the league, reflecting the overall trend in the NFL to devalue the position. Wide receivers, however, continue to see large contracts, and the Cowboys have made several investments in this area as well, including deals for players like Amari Cooper (who was traded in 2022) and CeeDee Lamb, who is expected to sign a significant extension in the near future.
Future Outlook: Cap Flexibility and Challenges
Looking ahead, the Dallas Cowboys will face several key decisions that will impact their salary cap. Dak Prescott’s large contract, while structured to offer flexibility, will still take up a significant portion of the cap. The team’s success in the coming seasons will rely heavily on their ability to manage this burden while securing key players, such as Parsons, Lamb, and other emerging stars.
Additionally, the Cowboys will need to continue their strategy of finding bargains in free agency and drafting well. The team’s success in developing young players has been a key component in their ability to manage cap space effectively. Players like Parsons, Lamb, and others have proven to be highly productive while still on rookie contracts, allowing the team to allocate resources to other positions.
