The Dallas Cowboys are starting an important offseason, with one of the key factors being quarterback Dak Prescott’s next contract. Dallas has rolled with Prescott for the past eight seasons, but they have a major decision to make on both his and the team’s future.

With just one year remaining on his current contract, the Cowboys are potentially at a crossroads. And while an extension feels like the likelier option, ESPN’s Jeremy Fowler said on Sportscenter on February 24 that serious talks have not begun.

“I was told that Dallas and Dak Prescott’s reps have not had any substantial talks,” Fowler said. “They have not discussed numbers, they could certainly meet at the NFL combine next week though to at least get started to see where each side is at.”

Prescott is coming off one of his best seasons in the NFL. But the lack of playoff success and the costly nature of his upcoming contract makes this a franchise-defining decision.

It’s a difficult decision. However, Dallas has to decide what the next 3-5 years of their franchise will look like. Prescott could be “the guy,” but the Cowboys would be hitching their wagon to a player that is 2-5 in the playoffs.

Prescott Entering Final Year of Deal

There are several reasons why extending Prescott would be beneficial. While he will require a contract that may set the QB market, Dallas can ease the financial strain his salary is currently causing.

According to Spotrac, Prescott will count toward a $59.46 million cap hit in 2024. For context, that is 22.43% of the Cowboys’ salary cap space in 2024. For elite QB play, it’s worth allocating that kind of money, but Dallas has improvements to make to the roster.

Extending Prescott would ease the cap hit this year, freeing up money to make moves. Of course, the bill will come due over the next few years but that’s not a problem if Dallas wants Dak to be the long-term QB.

After a season where Prescott led the NFL in completions and touchdown passes, it seems like a no-brainer. But the Cowboys are entering a make-or-break year for head coach Mike McCarthy, which means a possible turning point in the franchise.

Cowboys Dealing with ‘Star QB’ Money

While opinions differ on Prescott, the reality is that he finished as the runner-up for the 2023 MVP award. Entering the final year of his current deal while playing at a consistently high level calls for big money.

Which is why SI.com’s Mike Fisher recently reported that an extension isn’t as simple as wanting Prescott around. They need to be able to pay him enough money to outpace the QB market.

“Is Dak ‘worth’ the same as top-paid QBs Joe Burrow ($55 million APY) and Lamar Jackson and Justin Herbert ($52 million APY)?” Fisher writes. “That’s not really the point. This negotiation is going to be about the cost of doing ‘star QB’ business … and whether Dallas chooses to do it long-term.”

Building an elite roster is expensive, and Dallas has a lot to account for. But as things stand, paying Prescott is their most immediate hurdle.