2025 Free Agency: Cowboys could give Schottenheimer $67 million in cap space with no regrets

The Cowboys will create enough room to maneuver however they choose in free agency. Here’s the common sense moves, and ones at their disposal that come with question marks.

Now that the Dallas Cowboys have settled on a new head coach in Brian Schottenheimer, the attention has turned to filling out his coaching staff. But after that is completed, the process of finding veteran solutions to their roster deficiencies becomes front and center.

The 2025 NFL salary cap hasn’t been announced yet, that will come in the first week of March. But the league has alerted its 32 teams the cap should come in between $270 million and $275 million. Working with the median of that range ($272.5 million), Dallas enters the offseason slightly over the cap, but with ways to get way under.

According to the NFLPA, Dallas is carrying over $18.5 million of unused 2024 cap space that rolls over into 2025, and it’s needed because the Cowboys have $296 million in contract commitments, according to Over The Cap.

Here’s a look at how the Cowboys can create the necessary cap space to re-sign their players, and what they likely won’t do in order to create room and sign some external free agents.

2025 Restructures that will create more space

CLEVELAND, OHIO – SEPTEMBER 08: Dak Prescott #4 of the Dallas Cowboys reacts prior to a game against the Cleveland Browns at Cleveland Browns Stadium on September 08, 2024 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)

Dak Prescott’s deal calls for a 2025 base salary of $47.75 million. He’ll get that cash, but there’s an obvious reason why his four-year extension included another four void years that run through 2032. The Cowboys are going to pull the restructure lever and kick the majority of his base salary down the road in five-year installments.

To keep the accounting neat, we’ll assume they drop his base salary down to $2.75 million for 2025, and turn $45 million into a restructure bonus. That’s allocated across each year, from 2025 through 2029, at $9 million per.

Now his 2025 cap hit plummets from $89.9 million to $53.9 million, shaving $36 million in space.

CeeDee Lamb’s deal is similar. Pare his $26.85 million base salary down to $1.85 million and spread that $25 million across five years, shaving $20 million off the 2025 cap.

Together that’s another $56 million in space.

Micah Parsons

Fans concerned that the club still needs to sign Micah Parsons to a record-setting extension shouldn’t be. He’s going to get his money, and it’s actually going to help the 2025 cap situation.

That’s because Parsons is already on the books for his fifth-year option salary at $21 million, when his extension hits, his 2025 cap hit will likely drop to $10 million or below, freeing up another $11 million worth of cap space for a total of $67 million.

Questionable moves

Those are the easy ones. Dallas doesn’t have to restructure Prescott’s or Lamb’s deal all at once. Those can be done as necessary to clear space to make acquisitions, piece by piece. Parsons’ extension won’t be rushed, as witnessed by the drawn-out process for the two deals from last summer.

And, Dallas could create more room if the want, but these are more questionable.

Moving cap hit from the current year to future years makes sense; $20 million takes up a higher percentage of cap space in 2025 than it would in future seasons with higher caps. It’s a bang-for-the-buck thing.

But that only works when the player is likely to see those future years. Players who are on the decline, or with serious injuries aren’t wise restructures.

In that vein, there’s another __ million of space Dallas could reap.

Right tackle Terence Steele struggled for much of 2024, though he improvd down the stretch. But if Dallas doesn’t see him as their long-term right tackle, then it wouldn’t be wise to restructure him, though it could shave $9 million off the cap.

Trevon Diggs suffered a significant knee injury towards the end of the season, and has missed the majority of the last two seasons after signing a huge deal in 2023. Restructuring him could add $6 million of space.

That’s another $15 million, without even adding void years to either deal, for a total of $82 million.

There’s also the potential that some players are released, which could reap even  more savings, but those wouldn’t have to be motivated by the need to add space, rather not seeing those players as worth the expense.

The Texans slot in the 2025 NFL Draft is now set

The Houston Texans know when they’ll be on the clock in the 2025 NFL Draft.

The Houston Texans are on the clock.

Well, not yet, but at least they know their draft positioning entering April 25 in Green Bay.

Following a 24-13 loss to the Kansas City Chiefs on Saturday afternoon at Arrowhead Stadium, the Texans will select 25th overall in the 2025 draft. At 10-7, Houston had the worst record of any team remaining team, cementing the franchise with the lowest pick remaining.

Multiple positions could be in play ahead of free agency, but trench play has to be at the top of the list on both sides. Houston plans on upgrading one of the guard spots this offseason. The same goes for defensive tackle.

With Stefon Diggs set to hit free agency and Tank Dell out for most of next season, adding a wide receiver isn’t the worst option in the first round. And Houston could benefit from adding a long-term running mate with rookie Calen Bullock at safety.

The current pick is subject to trades, of course. Texans GM Nick Caserio has been a very aggressive dealmaker in the past, moving up nine spots in 2023 to select Will Anderson Jr. at the No. 3 overall following the selection of C.J. Stroud.

Last season, Caserio traded the first-round pick to the Minnesota Vikings in exchange for two second-round picks and a future fifth-round pick, which was used in the trade for Diggs from Buffalo.

Texans have 11th-lowest salary cap rollover total for 2025

The Houston Texans won’t have much to spend in free agency based on the current salary cap structure.

The Houston Texans won’t be as aggressive in free agency following back-to-bak promising years on the market.

At the end of each season, teams rollover any unused cap space from the current year and add it to the next season’s total. Following the 2024 campaign, Houston is rolling over just over $4.82 million according to Jason Fitzgerald of OverTheCap.com.

That’s roughly in the same range as contenders like the Kansas City Chiefs ($3.1 million), Miami Dolphins ($3 million) and Los Angeles Chargers ($4.9 million).

The Texans could trim some fat to free up cap space before the start of free agency, but after the rollover, they’ll enter 2025 with $3.9 million in cap space. That’s 25th overall and the last of teams remaining in the net positive of cap space.

Houston has 22 in-house players scheduled to become free agents in March. Expect the Texans to bring back a few key players and then look to fill some needs during free agency ahead of drafting more talent in April.

The Texans hit the field on Saturday to take on the Kansas City Chiefs in the divisional round. Kickoff from Arrowhead Stadium is scheduled for 3:30 p.m.

What does Texans’ 2025 salary cap situation look like?

Here’s where the Texans stand in cap space following the 2024 season.

With the Houston Texans on their bye week, let’s take a peek ahead to the 2025 offseason and what their salary cap situation might look like entering Year 3 of the DeMeco Ryans era.

According to Over the Cap, the Texans are set to have $12.9 million in cap space at the current moment. That places Houston at 26th overall in space.

There are ways for the Texans to create space to bolster additional room in the budget. They could release multiple veterans that would take a minimal cap hit compared to larger than their dead cap hit if it remained on staff.

An example of this would be Shaq Mason, who if were to remain on the team, has a cap hit of $14.6 million. If released, his dead cap hit–or money that stays on the books even if cut–is $12.4 million, which feels ample but is minor compared to Laremy Tunsil or Tytus Howard.

Two other avenues of creating cap space can come via contract restructures or sometimes even extensions.

With a restructure, the team is essentially kicking the salary cap can down the road, by taking current year’s cap charges and pushing them into future contract years.

In an extension, with new years added to a current deal, that gives the team an avenue–somewhat like a restructure–to push cap charges to future years, thus helping to lower the current year’s cap hit.

In addition to all of that, any unused cap space from the current year is rolled over to the following year. As of now, the Texans have $5.73 million in unused cap space that could be added to their 2025 total.

Some money must be allocated to draft picks, but sights would turn to free agency soon after. Would Nick Caserio be willing to spend?

Last offseason, Caserio prioritized upgrading from the outside. While Houston extended tight end Dalton Schultz and receiver Nico Collins on three-year deals, it also brought in names like defensive lineman Denico Autry, linebacker Azeez Al-Shaair, and defensive end Danielle Hunter.

Houston also traded for All-Pro receiver Stefon Diggs and Pro Bowl running back Joe Mixon for draft picks. Mixon was extended on a three-year deal while Diggs’ previous extension was voided by Caserio before the start of OTAs.

Everything is built around C.J. Stroud. The Texans must improve their offensive line if they play to be competitive in 2025. Next offseason will be important in helping the Texans go from being a fringe division leader to a legitimate playoff force.

State of the Salary Cap: Cowboys’ in position to defy tradition, splurge in 2025

A closer look into the Cowboys’ 2024 and 2025 cap situations. With Week 2 shaking the confidence of Cowboys fans, here’s a $ and cents helper. | From @KDDrummondNFL

It’s a horrible feeling to wake up in Week 3 and think that the team one has dedicated their sports life to is dead in the water already. Make no mistake; the Cowboys are better than what they displayed on Sunday in their 44-19 bludgeoning at the hands of the New Orleans Saints.

The club has a new defensive coordinator and system, one that’s notoriously hard to learn. The stars didn’t play in the preseason whatsoever on either side of the ball, and they were missing one of their only two proven passing game weapons and the fill-ins hurt them on numerous occasions. But those excuses do nothing to assuage the feelings that this team has to have perfect circumstances to emerge victorious at the end of the season, and perfect doesn’t happen around here.

So even with the NFC East looking extremely winnable, and teams from San Francisco and Detroit looking within reach, the more than likely outcome is that Dallas will be spinning things forward in 2025 instead of looking to run things back. Fortunately, the salary cap outlook for such a thing is actually pretty promising in that regard. Unfortunately, it’s just not the team’s track record.

Good friend and former Cowboys Wire contributor Joey Ickes spent the summer putting Jerry Jones’ feet to the fire over the fact that the richest sports organization in the world was bringing up the rear in terms of cash spending on players. The grumble became so loud, after signing CeeDee Lamb and Dak Prescott late in the summer, Jones told some untruths that Dallas spent more cash on players than any other team. In reality the two top-of-market contracts only moved Dallas up to 13th overall.

But even with the Jones ponying up to extend the two offensive stars, there’s still a great cap-space picture painted for the club, though they have plenty holes that are going to become available in the very near future.

2024 Remaining Cap Space: $25,482,263

FRISCO, TEXAS – JANUARY 08: (L-R) Executive Vice President Stephen Jones of the Dallas Cowboys, Head coach Mike McCarthy of the Dallas Cowboys and Dallas Cowboys owner Jerry Jones talk with the media during a press conference at the Ford Center at The Star on January 08, 2020 in Frisco, Texas. (Photo by Tom Pennington/Getty Images)

According to Over the Cap, Dallas currently has the seventh-highest amount of available cap space for this season. Prescott’s reduction in base salary minus signing bonus allocation resulted in about $11 million in cap savings this season. Lamb, whose entire $17.99 million fifth-year option was counting against the cap before his new deal, now only counts for $8.75 million against the cap.

This gives Dallas the ability to swing trades for high-priced players who become available, More than likely though, this will only be used for injury replacements as the team signs guys off the street when necessary. Whatever is left over will be added to next year’s cap, as outlined by the CBA.

2025 Projects Cap Space

OTC is projecting the 2025 cap to jump around $17 million, up to $272.5 million. Dallas currently has 39 players under contract for (including dead money) $269 million in cap liabilities. That doesn’t leave a ton of room until the other factors are considered.

That $3.5 million in room balloons if they bring over all of that $25.5 million in unused 2024 space. Now Dallas is looking at around $29 million of space, but it gets much higher.

2025 Restructures that will create more space

CLEVELAND, OHIO – SEPTEMBER 08: Dak Prescott #4 of the Dallas Cowboys reacts prior to a game against the Cleveland Browns at Cleveland Browns Stadium on September 08, 2024 in Cleveland, Ohio. (Photo by Jason Miller/Getty Images)

Prescott’s deal calls for a 2025 base salary of $47.75 million. He’ll get that cash, but there’s an obvious reason why his four-year extension included another four void years that run through 2032. The Cowboys are going to pull the restructure lever and kick the majority of his base salary down the road in five-year installments.

To keep the accounting neat, we’ll assume they drop his base salary down to $2.75 million for 2025, and turn $45 million into a restructure bonus. That’s allocated across each year, from 2025 through 2029, at $9 million per.

Now his 2025 cap hit plummets from $89.9 million to $63.9 million, shaving $36 million in space.

Lamb’s deal is similar. Pare his $26.85 million base salary down to $1.85 million and spread that $25 million across five years, shaving $20 million off the 2025 cap.

Together that’s another $56 million in space along with the $29 million they already have.

Dallas now has $85 million worth of space to work with.

2025 Needs

Remember earlier when the roster size was discussed. Only having 39 players under contract obviously won’t hold. The minimum Dallas will have to spend to fill out their roster will be around $18 million. So consider Dallas as having $67 million to spend on talent that is above replacement level.

Zack Martin, DeMarcus Lawrence, Osa Odighizuwa and Jourdan Lewis are the most likely contenders to be brought back from their pending free agents.

The Micah Parsons situation

There’s another caveat though, that will likely give Dallas even more room. Defensive end Micah Parsons is going to be in the same situation Lamb was in this offseason. He’s on the books for his fifth-year salary at $21 million, and will become the highest-paid non-QB. Even with that extension, his 2025 cap hit will likely drop to $10 million or below, freeing up another $11 million worth of cap space.

That will effectively get Dallas close to $100 million under the cap to start their spending spree; unless they extend any of their pending free agents or trade for veterans during this campaign.