ESPN’s Adam Schefter reports the Cowboys are restructuring QB Dak Prescott and OL Tyler Smith‘s contracts, creating $47 million in 2026 cap space.
Schefter adds Dallas is still expected to restructure WR CeeDee Lamb‘s contract as well. Per Over The Cap, the Cowboys can create another $19 million in 2026 cap space by restructuring Lamb.
Before these moves, Dallas was projected to be $56 million over the cap. If they restructure Lamb, they will be cap compliant and have enough for their upcoming draft class, but other moves would need to be made to have space for any free agents.
ESPN’s Todd Archer confirms Lamb has been restructured as well, putting Dallas under the salary cap.
Prescott, 32, is a former fourth-round pick of the Cowboys back in 2016. He played out the final year of his four-year, $2.72 million contract and was in line to be an unrestricted free agent in 2020 when Dallas placed the franchise tag on him.
The following offseason, Prescott signed a four-year, $160 million contract that included $126 million guaranteed. The contract can top out at $164 million.
Prescott was set to be an unrestricted free agent in 2025 but signed a four-year, $240 million extension with Dallas back in September. The deal also includes $231 million guaranteed, $80 million of which comes in a signing bonus.
In 2025, Prescott appeared in all 17 games for the Cowboys and completed 67.3 percent of his passes for 4,552 yards, 30 touchdowns and 10 interceptions.
Smith, 24, was a first-round pick of the Cowboys in 2022 out of Tulsa. He signed a four-year, $13.4 million rookie deal through 2025 and was set to make a base salary of $2,530,788 in 2025 after Dallas picked up his fifth-year option.
Dallas re-signed him to a four-year, $96 million contract extension in September, making him the league’s highest-paid guard.
In 2025, Smith appeared in 16 games for the Cowboys and started each game. He has appeared in and started 63 games for Dallas in his career so far.
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