The options on Prescott's contract in 2024

[Diehardblues]

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.

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 get a deal done in March: The front office has another option available that will essentially serve the same purpose while buying them a little time. The Cowboys can continue to do what they’ve done every year since Prescott signed his last deal and that’s converting most of his base salary into bonus money. This is just a bookkeeping maneuver to spread that base salary out over multiple years. Since Prescott has two void years on his contract, the Cowboys can spread a great majority 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. 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 maximum amount of his $29 million base salary into bonus, this is what happens...

The Cowboys' 2024 cap hit from Dak drops from $59.46 million to $40.93 million, freeing up $18.53 million in cap space. That’s the good news. The bad news is that the Cowboys will still be on the hook for the remaining $55 million (of his original $160 million) spread across the two void years of his contract ($35 million in 2025, and $20 million in 2026). If they don’t end up extending Prescott, that will be a hefty tax to pay for an asset who will be playing for some other team after the 2024 season.

The Cowboys have the flexibility to delay an extension with Prescott until the fall . 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? These questions will be a lot easier to answer in the fall.

Not getting a deal done by the start of the season will likely sour the relationship between Dak and the front office and Prescott's contract demands will be enormous next offseason as he holds all the cards.

https://www.bloggingtheboys.com/202...t-extension-restructure-trey-lance-void-years

 

[Diehardblues]

Option 2 looks like most likely which gives the Cowboys more time and perhaps a little more leverage as Dak could be concerned going into season without a deal.

Which means it could be a late hour negotiation heading into beginning of season in Week 1.

Most I listen to locally have felt a deal gets done in Camp or preseason but it could go up until last hours before Week 1 in September .

 

[Diehardblues]

If you have access to the DMN paper they have had excellent coverage and spell these options out as well. Just can’t share on this forum.

 

[Diehardblues]

The March 13th deadline was just if the Cowboys wanted to be more active in FA which apparently they didn’t have intentions to be.

Option 2 allows them to restructure his current contract saving about 18 mil in Cap in order for some room in FA and for the draft and basically get a deal done by September or Week 1.

It provides the Cowboys a little more leverage with the prospect of heading into season without a deal. Which is concerning for Prescott.

And could provide a little more negotiating leverage for Cowboys . Dak could be willing to compromise to avoid the uncertainty going into a season without a deal with the potential of injury, a bad season, etc which could lower his value in 2025 on Free Agency.