The Dallas Cowboys are in the midst of a disappointing 4-7 season and their future could be even bleaker due to their salary cap situation.

Dak Prescott’s record-breaking contract extension, along with the new contract CeeDee Lamb signed in August, will account for a large portion of the Cowboys’ 2025 salary cap. With Dallas likely having to make some difficult financial decisions this offseason, former Cowboys head coach Jimmy Johnson believes the franchise made a misstep with Prescott’s deal.

“They’re so financially strapped with all these contracts,” Johnson said on FS1’s “The Herd” when asked what he would do if he were managing the Cowboys this offseason.

“Firstly, I would never have given Prescott a new contract. I would have let him play out. He is the highest paid player in the league. He’s not the best player in the league. He didn’t want to go. “If you went to the Super Bowl with him, you wouldn’t pay him anywhere. If he struggles in the playoffs, you’ll save money.

“But they’re so financially strapped right now that I don’t know what they’re doing.”

Prescott signed a four-year, $240 million contract extension with the Cowboys in September that included $231 million in guaranteed money. The deal’s average annual value and guaranteed money were the highest in NFL history. His season ended after Week 9 when he tore his Achilles tendon.

The deal for Prescott came a few weeks after Lamb signed a contract extension worth $136 million over four seasons with $100 million guaranteed. As a result, Prescott ($89.9 million) and Lamb ($35.5 million) will have mammoth cap numbers next season. With the salary cap expected to be around $272.5 million next season, Prescott and Lamb’s numbers will represent about 45% of their salary cap.

While Prescott and Lamb received new contracts, standout linebacker Micah Parsons did not receive one. He enters the final year of his contract in 2025 and if extended, the Cowboys would likely tie up a significant portion of their salary cap on three players in 2026 and future seasons.

With a contract decision looming for Parsons, some have pondered whether it would be a good idea for the Cowboys to trade him to fill out a roster that has proven to have several holes. Johnson doesn’t think that’s a good idea.

“Parsons is such a great player,” Johnson said. “It would have to be a boatload of picks to trade him. I wouldn’t want to get rid of him. He is their entire defense. He is a game changer. Al Davis once told me what I was talking about.” Players, and he said that the particular player I was talking about – it was Michael Irvin – wins games for you. You don’t want to get rid of a player who is winning games for you.

Parsons has missed four games this season with an ankle injury, which is just one of the reasons Dallas’ defense ranks near the bottom of the league. But when he’s healthy, he’s productive. In seven games, he has a team-high five sacks as well as 25 total tackles, 11 QB hits and a forced fumble. He also has a team-high pressure of 36 this season, according to Pro Football Focus.

Earlier this week, Johnson said on “The Facility” that he wouldn’t hire Colorado’s Deion Sanders as head coach if he were running the Cowboys. While there are hot rumors surrounding head coach Mike McCarthy, Johnson wouldn’t make a move either after owner Jerry Jones left open the possibility that McCarthy could be given an extension at the end of the season.

“They’re talking about a coaching change,” Johnson said. “Well, I don’t know if a coaching change will help them. Mike McCarthy is a good football coach. I don’t know if a new coach can solve the problem.”

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