Loophole in Dak Prescott's contract shows why Cowboys don't have to extend QB

It's widely assumed the Cowboys must extend quarterback Dak Prescott to save cap space. However, his contract has a loophole that gives Dallas more leverage.

Micahel Gehlken of The Dallas Morning News reported the Cowboys added two void years (2025 and 2026) to Prescott's four-year, $160M deal. They can use these to convert his salary into a signing bonus, which saves cap room and creates more financial flexibility.

Dallas did this last offseason and could do it again. According to Gehlken, this move would reduce Prescott's cap number from $59.46M to $40.93M, and Dallas would create $18.53M in cap room.

While this would be smart, the Cowboys will probably give Prescott a new contract. Per Over The Cap, an extension saves slightly more cap room ($26.32M). OTC estimates Dallas is $19.74M over the cap.

The Cowboys aren't in a position to find a potential replacement, either. They have the 24th overall pick of the 2024 NFL Draft, so all the top QB prospects should be off the board.

Dallas also wants to avoid souring its relationship with Prescott. If he becomes a free agent in 2025, the Cowboys can't franchise tag him since his contract has a no-tag clause. He also has a no-trade clause.

The 30-year-old is still in his prime and coming off of one of the best seasons in his eight-year career. In 17 games, he finished first in the league in passing TDs (36), second in QBR (72.7) and third in passing yards (4,516).