A contract adjustment involving Dak Prescott has already started creating ripple effects inside the Dallas Cowboys’ offseason planning. The move quietly opened up salary-cap breathing room for Dallas heading into the 2026 league year, and the front office wasted little time acting on it. Within days, the Cowboys moved to lock in depth pieces in their defensive backfield to manage both its roster continuity and financial flexibility as the offseason begins to unfold.

The early move was particularly notable because Dallas’ secondary went through significant turbulence over the past two seasons, forcing the team to lean on developmental players and emergency starters at multiple points. With key injuries previously thinning the cornerback group, the organization has been careful about retaining players already familiar with the system as it reshapes the defensive roster ahead of free agency. That approach became clearer later in the week when a team update surfaced outlining exactly how Dallas intended to secure two of those depth pieces for the upcoming season.

“The Cowboys have tendered both exclusive rights FAs: CBs Josh Butler ($1.075m) and Reddy Steward ($1.005m),” the X post read. “They are under contract w/ the Cowboys and cannot sign with any other team. Team still working through final decisions on RFAs (Aubrey, Hoffman, Bass, Thomas).”

Steward saw the bigger role during the 2025 season, appearing in 17 games and recording 40 solo tackles, 23 assists, and 1.5 sacks. Butler had a smaller role but still provided depth, featuring in just one game last season and recording 3 solo tackles.

Butler’s path back to the roster carries a bit more history than a typical depth signing. The undrafted Michigan State product first drew attention late in the 2024 season when injuries to Trevon Diggs and DaRon Bland forced Dallas to elevate him into the starting lineup. In just his second start, Butler delivered one of the more unusual stat lines in franchise history, recording three passes defended and a sack in a win over the Washington Commanders, becoming the first Cowboys player to post that combination in a single game.

That momentum was short-lived. Four days after that performance, during a Thanksgiving matchup against the New York Giants, Butler suffered a torn ACL in the first half, abruptly ending what had begun to look like a breakout stretch. The injury sidelined him for the entire 2025 season, leaving the Cowboys to decide this offseason whether to retain him as part of their long-term secondary depth.

His road back to the NFL was already unconventional even before the injury. Butler stepped away from football after college and spent four years in Los Angeles pursuing acting, music, and media work before returning to the sport in 2023 through the UFL. That opportunity eventually led to Dallas signing him later that year, restarting a football career that had effectively paused after his time at Michigan State.

Although Butler felt ready to return earlier during the 2025 season, the Cowboys opted to keep him sidelined longer while managing roster spots and recovery timelines. He ultimately made his return in Week 18, nearly a full year after the ACL tear, later writing on social media that he had been healthy since midseason but was simply waiting for another opportunity to get back on the field.

Keeping familiar players in the system can be important for defensive continuity, especially in the secondary, where communication and chemistry play a major role.

Moves like these also fit into the Cowboys’ broader offseason strategy. By securing depth players early, Dallas can focus its remaining resources on other roster needs as free agency and additional contract decisions approach. Beyond the defensive roster moves, Dallas also received an important boost to its financial flexibility ahead of the 2026 league year.

Dak Prescott’s contract restructure helps the Cowboys gain $8.5M cap flexibility

The Dallas Cowboys also created additional salary cap flexibility after restructuring the contract of quarterback Dak Prescott. The move was widely expected because Prescott’s deal includes built-in options that allow the team to convert part of his salary into bonuses to spread the cap impact across future seasons. NFL salary cap analyst Jason Fitzgerald shared the update on X.

“With today’s restructures, the Cowboys are now salary cap compliant for 2026,” the X post read. “They will have about $8.5 million in cap room.”

To create immediate breathing room, the Cowboys used a common tactic with Prescott’s contract. They converted the bulk of his $40 million salary into a bonus. While Prescott still gets paid, this maneuver allows the team to spread the cap hit across the next five seasons, though it does mean bigger cap numbers down the road.

The restructure created more than $30 million in cap relief for 2026, though it pushes larger cap numbers into future seasons. Prescott’s projected cap hit now rises to about $76 million in 2027 and $86 million in 2028. However, the Cowboys still have the option to restructure those years as well if they need additional flexibility.

Dallas has used this strategy for years when managing large contracts. The Cowboys structured Prescott’s current deal, which includes a four-year extension signed in 2024 worth $240 million in new money, to allow these kinds of cap adjustments.

By retaining key depth and creating $8.5 million in cap space, the Cowboys have given themselves options. The focus now shifts to how they’ll leverage this newfound flexibility to address bigger roster holes before the new league year begins.