The financial landscape surrounding the Dallas Cowboys is under significant scrutiny as fans and analysts speculate about the team’s ability to retain star players like Dak Prescott, CeeDee Lamb, and Micah Parsons. Fitting these lucrative contracts under the team’s salary cap poses a considerable challenge, especially since few teams allocate top-tier funds to all three of the highest-paid positions in the NFL. For the Cowboys to successfully navigate this complex financial situation, they will need to demonstrate a strong commitment to their operational strategy and salary cap management.

Yesterday, we explored the front office’s commitment to retaining these three marquee players. Today, we will delve into the steps required to make this a reality. Before doing so, it’s essential to outline the financial dilemma the Cowboys are facing. While Prescott, Lamb, and Parsons are the most prominent names due to their high projected costs, several other players also factor into the equation. Maintaining their top talent while planning for the future will require careful financial planning and allocation of resources.

These players represent the core of the team, and the Cowboys seem determined to retain them. Trevon Diggs has already been re-signed, giving the team clarity on his financial impact. The projected costs for the other key players are based on current market trends for top performers at their respective positions, highlighting the financial challenge ahead. When considering these contracts, the Cowboys find themselves allocating an astounding 59.44% of their salary cap to just five players. This raises critical questions about the team’s ability to remain competitive while dedicating such a large portion of their cap space to a handful of elite athletes.

It’s essential to note that many teams are structured similarly, with a few star players earning the majority of the salary cap. An example is the Philadelphia Eagles, where their top five highest-paid athletes—Jalen Hurts, A.J. Brown, DeVonta Smith, Lane Johnson, and Landon Dickerson—account for 54.75% of their cap. This is not far off from the Dallas situation, illustrating a common challenge that teams face in balancing their rosters while still compensating star talent.

To ensure that the Cowboys can manage the remaining 40% of their salary cap effectively, they must implement strategic operational practices. Below are some actionable strategies that can help the organization navigate these financial hurdles.

SECURE LONG-TERM CONTRACTS FOR ELITE TALENT

It’s widely believed that signing players to long-term contracts early is crucial for cost savings. While there’s validity to this claim, the reality can be quite complex. If a team can secure a favorable deal for a player who has yet to fully realize their potential, this can lead to significant savings. However, these opportunities are relatively rare. The Cowboys have attempted this approach with players like La’el Collins, Jaylon Smith, and Terence Steele, but the results have often been mixed. If they take too many risks in this regard, they could face negative consequences.

Typically, by the time a player becomes eligible for an extension after their third year, their market value is well established. Although average salaries may fluctuate due to inflation, a player’s cap percentage remains relatively stable. Therefore, there is limited downside in deferring contract negotiations. This is why the Cowboys often opt for patience when extending contracts for their players.

The most effective way to conserve cap space is by securing proven talent on long-term contracts. The Cowboys have excelled in this regard, as locking in reliable offensive linemen on extended deals has greatly aided in managing their salary cap. The longer the contract, the more manageable the cap hit becomes, especially as salary caps increase over time. Identifying a “sure thing” and committing to them with a long-term deal is the key strategy that can lead to financial success.

ESTABLISH A CONTINGENCY PLAN FOR UNFORESEEN CIRCUMSTANCES

In the world of professional sports, plans can often go awry. Whether a player fails to meet expectations, as seen with Michael Gallup, or whether roster changes occur unexpectedly, like CeeDee Lamb‘s arrival in Dallas despite the presence of Amari Cooper, unforeseen events can disrupt even the best-laid plans. As the saying goes, “It happens.”

When these situations arise, it’s crucial to have a contingency plan in place. Many contracts are structured to back-load payments, incentivizing players to perform well to earn the remainder of their salaries. The Cowboys have effectively integrated safety measures into their contracts, ensuring that even when challenges arise, they are not left in a precarious position. This foresight is vital, as what may appear to be star players now could change in the future, requiring the team to rethink how they allocate their cap space for overall improvement.

PRACTICE DISCIPLINE IN FREE AGENCY

Here’s the good news and the bad news for the Cowboys. The challenge is that they must exercise extreme caution during free agency. When March arrives, they will likely be the team sitting on the sidelines while others are splurging on high-profile free agents. The silver lining is that the Cowboys’ front office has already demonstrated discipline in this area. While it may frustrate fans to miss out on exciting free agent opportunities, this careful approach is a significant factor in making it feasible to retain core players.

MAKE TOUGH DECISIONS ON PLAYER DEPARTURES

One of the most challenging aspects of the Cowboys’ strategy is the necessity of letting talented players go. It can be emotionally difficult to watch Pro Bowl-caliber athletes, whom they have drafted and relied upon, leave for other opportunities. However, sacrifices are necessary. Losing players like Tyler Biadasz, Tony Pollard, or Dalton Schultz may weaken the roster, but these individuals do not fall into the elite category that the Cowboys are willing to invest heavily in. When Jerry Jones expresses concerns about risking Tyron Smith hitting performance incentives, it reflects this reality. The decision to part ways with Amari Cooper, whose salary was $20 million annually in exchange for a “measly fifth-round pick,” further exemplifies the need for financial prudence. The Cowboys are focused on saving wherever they can, as they cannot afford to see their young All-Pros—who are pivotal to the team’s future—be compromised by tough departures.

Some of these departures will undoubtedly sting. Players like DaRon Bland or Jake Ferguson are individuals fans would like to see retained, but such retention may prove challenging. The front office may need to consider trading some of these young talents to acquire better assets than simply a compensatory draft pick.

FOCUS ON QUALITY DRAFTING TO BUILD A STRONG ROSTER

With a significant portion of the salary cap allocated to a few players, the Cowboys must rely on affordable talent from many players still on their rookie contracts. This strategy hinges on the importance of quality drafting. Fortunately, the Cowboys have demonstrated strength in this area, successfully refreshing their roster with young talent. In some cases, the replacements for departing players have even outperformed their predecessors, which allows the organization to incorporate them into the budget effectively. The challenge of having multiple players on favorable contracts is a welcome one.

It is important to note that quality drafting does not imply perfection. The team has not gained much from their 2023 draft class, but this has not hindered their overall success. The Dallas Cowboys continue to excel in acquiring collegiate talent through the draft and identifying excellent free agent signings that fill pressing needs.

RESTRUCTURING CONTRACTS FOR OPTIMAL CAP MANAGEMENT

The Cowboys have already accumulated a significant financial obligation, but this is a price they have willingly paid to keep their talent intact. As many players carry hefty cap hits, restructuring contracts will remain standard practice for the Cowboys. This approach is commonplace across the league, but the key lies in not allowing it to spiral out of control. The front office has shown commendable restraint in maintaining fiscal responsibility.

MAINTAINING FINANCIAL BALANCE FOR TEAM SUSTAINABILITY

The challenges faced by the Cowboys’ front office illustrate the complexities of retaining all their key players, and they are undoubtedly correct that this task is no easy feat. While it may not be feasible to keep everyone, they can focus on retaining those they truly want. Achieving this requires considerable financial responsibility, often involving sacrifices that may not sit well with the fan base. The Cowboys have developed a knack for operating within these constraints, providing a solid foundation for a sustainable operational strategy moving forward.