Here’s how Cowboys can responsibly create over $40 million in cap space
The Dallas Cowboys made a couple of moves on Friday which didn’t impact the state of the current roster but instead paved the way for some potential returns or additions. They’ll need to make more, however, if they are to be involved in free agency starting on Monday. Mind you, this isn’t even discussing being real players in the race for talent; that feels like chasing a unicorn.
This is in regards to doing much of anything, including their annual sign-their-own-bargain-shop-other-teams strategy. Converting base salary to bonus, Dallas shaved a little over $30 million to their cap space with the adjustments to Dak Prescott and Zack Martin’s deals. But because they were already over the cap, Tony Pollard’s pending franchise tag put them even more in the red. Dallas was $16 million over, according to Over the Cap; the moves gave them just $14.5 million in usable space and that’s not enough.
Dallas will want to carry at least $5 million worth of space into the regular season, and the draft class will take away another $3 million. That’s $8 million the club needs to earmark, meaning that they’ll only have $6.5 million of effective cap space to use.
Dallas currently has 57 players under contract, so they are already above the Top 51 threshold. 51 players of the 90-man offseason roster count against the salary cap, which is $224.8 million in 2023 (plus the Cowboys’ 2022 rollover of another $5.5 million). Each player they sign for more than the minimum will knock someone out of the Top 51, so their impact on the cap will be slightly less.
For instance, if Dallas signs a player to a one-year, $6.75 million deal it would use up $6 million of cap space because they’d be pushing a player making $750,000 out of the Top 51.
That’s not giving Dallas much of an opportunity to do anything, so here are five ways they could create more cap space. They don’t have to make these moves now, but could pull the trigger next week, next month or even after the draft.
Reduction or Release Ezekiel Elliott
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Perhaps the most discussed contract in the history of the NFL, Elliott’s 2019 extension where he demanded to be properly compensated for the wear and tear the Cowboys’ staff was putting on him has finally run out of guaranteed money. Elliott no longer has the breakaway speed he did in his first few seasons, but he scored 12 times in 2022, tied for eighth in the league.
He also was one of the best short-yardage converters at the position; both of those skills are highly valuable. It’s not worth $10.9 million in base salary though, and it appears everyone knows and is willing to except that number will need to go down.
Elliott and his reps spent the scouting combine testing to see what kind of market there would be for him if he refuses Dallas’ best offer and were to be released.
How much more would a team have to offer him above the Cowboys’ final bid to make it worth leaving Dallas? That’s the question.
Immediate Release Cap Savings: $4.86 million
Post-June 1st Cap Savings: $10.9M, $6.04M dead money in 2024
Recommendation: Restructure deal with low base salary and incentives
Instead of $10.9 million in base salary, Elliott is offered $3 million in base and another $5 million in escalating incentives. $1 million of that is likely to be earned, the other $4 million is not-likely-to-be-earned, meaning it doesn’t hit the cap unless he achieves it and not until the end of the year.
That way he’s compensated if injuries thrust him back to the lead back role in any significant way.
$3 million base salary
$1 million bonus for 10 total touchdowns (LTBE)
———-
$4 million cap hit (plus already allocated hit from prior bonuses)
$1 million bonus for 1,000 rushing yards (NLTBE)
$1 million bonus for another three TDs (13+, NLTBE)
$1 million bonus for 300 receiving yards (NLTBE)
$1 million bonus for Pro Bowl appearance
This would give Dallas $6.9 million in additional cap space to start the year, and allow them to keep the face of the franchise in Dallas. Elliott in turn could earn up to $8 million if he were to have a throwback season. Future years could be structured in a similar fashion.
Reduction or Release for Tyron Smith
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While Elliott’s been able to maintain his presence on the field as he ages, the future Hall of Fame left tackle hasn’t. Smith is still starter grade, but there’s absolutely nothing about him that says the team can plan on him to be there. He’s entering the final season of his team-friendly 10-year extension and still needs to be a consideration though.
Bringing back Smith affords Dallas a ton of flexibility. Right tackle Terence Steele suffered an ACL injury but should be back for training camp. ACLs for linemen aren’t the same as they are for skill positions, but it’s not nothing.
Tyler Smith could also return inside to guard if the elder Smith were to play left tackle. New OL coach Mike Solari has some decisions to make, but would be better off with Smith back, just not at his $13 million base salary andcap hit.
Rework Smith’s deal to add one more real season and two void years.
Offer Smith a reduction of his $13.6 million base into a $4 million bonus, $1.165 million base (veteran minimum), $3 million in NLTBE bonuses ($1 million for starting five games, $2 million more for starting 10) and a $3 million base salary for 2024.
Smith makes a minimum of $5.165 million this year and could earn another $3 million plus incentives in 2024.
His cap hit drops from $13.6 million to $2.2 million, saving $11.4 million in space.
Convert DeMarcus Lawrence's base salary
Lawrence made the Pro Bowl again this past season for the first time since 2018. He’s one of the league’s pre-eminent run defenders in addition to being a quality pass-rusher who commands double teams.
His contract was reduced in 2022 and made fully guaranteed, so this is an easy trigger to pull. No matter what happens, Lawrence will be getting $15 million this season. Why not push some of that onto future caps where it takes up a smaller percentage of those caps?
Turn $9 million of his salary into a bonus, take advantage of the already included void year of 2025 and gain $6 million of additional cap space.
Convert Michael Gallup's base salary
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The Cowboys put too much faith into Gallup’s ACL recovery. It turns out not only was he unable to start the season, but he was never right the entire year. His five-year deal is really a two-year deal, but a conversion makes it a little more dicey to walk away if 2023 is another down year.
Gallup hasn’t come close to his 2019 performance since and it’s questionable whether that ever happens.
Still, a restructure has to be mapped out because it’s one of the easiest ways to create more room.
As it stands now, Gallup could be released (or traded) after the season and cost Dallas just $6 million in dead money. That could be June firsted into only $2 million in 2024 and $4 million in 2025.
A restructure of his $11 million base to a $1 million base and $10 million restructure bonus would mean $7.5 million in additional cap space in 2023.
Release Neville Gallimore
(AP Photo/Daniel Kucin Jr.)
Gallimore was a healthy scratch in the playoffs. The club probably wouldn’t release him until they’ve made other additions to the DT position in the draft or free agency, but his place on the roster has to be considered tenuous.
A release would save Dallas $2.7 million in cash and add $2 million of cap space (because he’d be replaced in the top 51).
Trade or Release Dorance Armstrong
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The club believes in Armstrong, but his strong start to 2022 certainly fizzled out. In the first 11 games of the season he had eight sacks and eight other tackles for loss. In the final six regular season games and two playoff appearances he had 0.5 sacks and two TFLs.
Armstrong is young and is signed for just one more season, but his role could go to increased snaps for Sam Williams.
There’d be a market for him, and moving on would mean an additional $3.5 million in cap space ($4.25 million – $750,000 top-51 replacement).
Trade or release Jourdan Lewis
(AP Photo/Ashley Landis)
Lewis is in the final season of his three-year extension and has a $4.5 million base salary. He’s a slot corner who’s worth is constantly undervalued and with the emergence of Daron Bland last season could be seen as instant savings by the club.
He has per-game roster bonuses, so some is LTBE but most is NLTBE. Dallas could shave $4 million off the cap by moving on from the former Michigan standout.
Other release options
Dallas could also potentially release other players on the final years of their deals, depending on if they felt others were capable of taking their place for cheaper.
Safety Jayron Kearse: $4.4 million
Safety Malik Hooker: $3.5 million
Punter Bryan Anger: $1.4 million
Recommendation Recap
Kirby Lee-USA TODAY Sports
Pay Reduction Elliott: $6.9 million space addition
Extend/Restructure Smith: $11.4 million space addition
Convert Lawrence into bonus: $6 million space
Release Gallimore: $2.7 million space
Total cap savings $27 million additional space
Total cap space after these moves: ~$41.5 million
