Talks on a Dak Prescott extension are ongoing, and the Cowboys would likely see significant cap savings in 2024 by working out a new deal. The team’s alternative, of course, has remained a restructure to lower Prescott’s cap charge in case a long-term arrangement cannot be worked out. 
Dallas has indeed taken the latter route, as detailed by ESPN’s Field Yates. The Cowboys converted a $5MM roster bonus Prescott was owed on Sunday into a signing bonus, creating $4MM in cap space. As a result, the 2023 MVP runner-up’s cap charge now sits at $55.46MM, a figure which more than doubles the amount from last season.
Two void years were tacked onto Prescott’s deal, Yates adds. As a result, void years now extend into 2028 on the contract as currently structured. Yates’ colleague Dan Graziano notes Prescott’s permission was required to add void years, so this short-term agreement is a sign the parties remain willing to work out more permanent solution. The parties are discussing a deal, although owner Jerry Jones has publicly stated he is prepared to carry out the season with Prescott carrying a massive cap hit. The latter has considerable leverage given his no-tag and no-trade clauses coupled with the 2024 cap relief an extension would yield.
The $4MM in immediate savings will become dead money next year in the event Prescott were to depart in free agency. If that were to be the case, the Cowboys would be hit with roughly $40MM in cap charges, another factor which will no doubt influence extension efforts on the team’s part. Dallas also has monster second contracts to work out with wideout CeeDee Lamb and edge rusher Micah Parsons, both of whom are now eligible for a deal keeping them in place beyond their respective rookie pacts.
2023 trade acquisition Trey Lance will remain in place for the coming season, and he is set to occupy the backup quarterback role as a result. Prescott’s play as Dallas’ starter in 2024 will be a key determinant in the value of his next contract if he and the Cowboys are not able to agree to a new deal this spring. Even with this small move aimed at providing short-term flexibility, though, an extension remains firmly on the table.