Howe: What I’m hearing about Cowboys contract talks with Dak Prescott, CeeDee Lamb, Micah Parsons

OXNARD, Calif. – The Dallas Cowboys remain stuck in an extremely complex situation involving the contractual status of three of their stars.

Quarterback Dak Prescott, wide receiver CeeDee Lamb and linebacker Micah Parsons are all in for new deals, though they are all at very different stages of negotiations with the team. However, if the Cowboys extend all three, they will select three players who will be among the highest paid — if not the highest – at their position at the same time.

All three negotiations are interconnected, with the Cowboys having to consider the cap gymnastics that will become necessary to keep the trio in Dallas long-term. After spending time at the Cowboys’ training camp this week, here’s the information we were able to gather from league sources:

First off, Prescott had a great camp and shined in practice on Monday. The Cowboys have been impressed with the quarterback’s ability to leave the business side out of the equation when it comes to his own performance.

But now the business side. Prescott is playing in the final season of his four-year, $160 million contract, and there is a unique challenge with his extension talks. Due to vacant years and a previous restructuring, Prescott is expected to make $29 million in cash this season while taking a cap hit of approximately $55 million.

Because an extension would continue to push that dead money into future years, it’s a much bigger hurdle to overcome from a cap perspective. It is also unique. Prescott is among 19 quarterbacks making more than $30 million annually, and none of them have signed a second big-money extension with their team. That’s important to note because of the dead money factor.

And among the 16 quarterbacks who average at least $40 million annually, the 31-year-old Prescott is one of only four on the other side of 30. While the standard number for a franchise quarterback has risen to $50 million in the past year — so not even higher – none of the eight QBs on that number have celebrated a 30th birthday.

That does not mean that that rule will not be broken in the short term. It’s just an expected negotiating point from the team side.

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For Prescott, he’s seen quarterbacks with lesser statistical resumes rise past his contractual value, and the new standard is now $55 million per year. Because Prescott’s timing is so favorable, he has asked for more than that number, which is his well-deserved negotiating right.

From a cap perspective, it would make more financial sense for the Cowboys to let Prescott’s contract expire after the season, which would eliminate the $26 million in dead money from future books. From a logical perspective, however, such a strategy could backfire as the lure of the open market and lurking QB-desperate teams would strike with offers that could shatter historical benchmarks.

Prescott knows that. So while he would certainly value something closer to market value in cash this season, he realizes the bank account will be just fine with a little patience. Remember, he’s been through all this before.

The Cowboys would like to retain Prescott for the duration of a new long-term contract. That’s why they’ve been trying to make an extension before free agency becomes more of a temptation.

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Furthermore, the idea of ​​starting over at this position doesn’t appeal to an organization that has won 36 regular-season games over the past three seasons, second only to the Kansas City Chiefs (37). It hasn’t translated into playoff success, but the Cowboys are contenders because of their overall talent. Prescott only supports that position.

Right now, it doesn’t appear like the Cowboys and Prescott are close to an extension, and cap dynamics and leverage points explain why that’s the case.

This one feels closer. Lamb and the Cowboys have made progress, but the point where the parties assume a guaranteed resolution has still not been reached.

Lamb is standing his ground and has informed the Cowboys that he will not report to camp without a new deal. He is currently operating under the terms of the fifth-year option of his rookie contract, which is worth $17.991 million.

The collective bargaining agreement calls for the Cowboys to fine Lamb $40,000 per day in camp, but they will likely waive those fines upon execution of a new contract. Removing penalties is only allowed because Lamb is still on his rookie contract.

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Last season, Lamb led the league with 135 receptions, finished second with 1,749 yards and tied for third with 12 touchdown catches. The 25-year-old, who was the No. 17 pick in the 2020 draft, has improved his production profile in each season of his career.

Justin Jefferson ($35 million per year) and AJ Brown ($32 million) recently reset the market, and there’s no doubt Lamb’s number would also top $30 million annually, making him the fifth member of that club.

The discrepancy is where Lamb should fall between Jefferson’s deal and Brown’s contract. Jefferson is widely regarded as the best receiver in the league, and he signed with an organization that has a quarterback on a rookie deal. Brown, another physically dominant receiver, got his deal after quarterback Jalen Hurts signed his massive pact. The other pair of $30 million wideouts, Amon-Ra St. Brown and Tyreek Hill, also work with $50 million quarterbacks.

The Cowboys seem reluctant to hit Jefferson’s APY with Lamb, so the concession could be the guaranteed money. Jefferson’s four-year, $140 million contract includes about $88.7 million fully guaranteed (about 63 percent), while Brown’s three-year extension worth $96 million includes $51 million fully guaranteed (about 53 percent).

Considering the two contracts, is a four-year deal worth $30 million to $32 million per year, including 63 percent guarantees, acceptable?

Those numbers may make the most sense. Overturn the APY and increase the guarantees to find a compromise, and it would help in the Prescott negotiations. Therefore, there are reasons to believe that Lamb’s contract could be the first to be agreed upon.

The defensive chess piece’s contract is on the back burner for now, but the Cowboys have been keeping it busy for a year. He is in the fourth season of his rookie contract, so he is now eligible for an extension, but the Cowboys also exercised his fifth-year option for 2025.

Understandably, the Cowboys have more pressing matters with Prescott and Lamb before diving completely into the Parsons pool. But the wait could come at a significant cost, as Parsons’ price tag could rise, especially if he delivers another healthy, productive season.

Parsons, 25, has been incredibly consistent through three seasons with 40.5 sacks, but his athleticism as a second-level linebacker has made him unique. The Cowboys won’t play the semantics game by treating Parsons like a linebacker in space, which would lower his value.

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San Francisco 49ers edge rusher Nick Bosa set the bar high last year with a five-year deal worth $170 million, including $88 million fully guaranteed. That $34 million annual benchmark will be the starting point, though the league still appears to view Bosa as the superior player.

Then again, if Parsons stays healthy, he will once again be on the short list of candidates for Defensive Player of the Year and should have the right to ask for Bosa money, especially after a few years of cap inflation.

That’s something the Cowboys will have to endure down the road. Now that Prescott is a more pressing matter and Lamb is out of camp, the organization must prioritize accordingly.

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It’s not hard to imagine a scenario where the Cowboys end up hiring the league’s highest-paid quarterback, a top-two receiver and the highest-paid defensive player. But even with concessions from the players, they are still looking at higher priced players at every position, and therein lies the challenge ahead of keeping this star-studded squad together.

(Photo by CeeDee Lamb and Micah Parsons: Richard Rodriguez/Getty Images)