Dallas Cowboys quarterback Dak Prescott will play out the final season of his four-year, $160 million contract extension. The two sides agree that his $55.4 cap hit and $29 million salary will not be adjusted further.

Extending Prescott’s contract would have allowed the Cowboys to defer some of his cap hit in 2024 to later years. However, they will not negotiate an extension this offseason and let things play out.

Dak Prescott signed his current deal in 2021 after the Cowboys used two consecutive franchise tags on him. His contract has no-tag and no-trade clauses and void years until 2028.

Prescott can walk away after the 2024 season without a contract extension, and the Cowboys will receive nothing in return. Worse yet, he will still count for $40.46 million against the cap, even if he signs with another team.

In February 2024, Spotrac’s Michael Ginnitti predicted that a Prescott contract extension would be three years for $180 million, including $169 million in guaranteed money.

If approved, the Cowboys can reduce his 2024 cap hit from $55.4 million to $41.6 million. His base salary will also drop from $29 million to $1.2 million.

More importantly, they will have him under contract until 2027, making it possible for Prescott to play 12 seasons for the Cowboys. However, multiple reports confirmed that contract extension talks will wait until the 2025 offseason, with other teams joining the bidding war.

-Lance Fernandez