The Dallas Cowboys unlocked approximately $12 million in cap room on Monday by restructuring contracts for Malik Hooker and Terence Steele, providing financial flexibility ahead of further roster moves. These adjustments set the stage for additional changes as the organization continues to address key needs following the trade of Micah Parsons.
Terence Steele’s deal restructuring accounts for nearly $10 million of the cap relief, while Malik Hooker’s contract modification adds roughly $2 million in savings, according to ESPN’s Todd Archer. These moves come before anticipated restructures involving Dak Prescott and CeeDee Lamb, signaling proactive management from team owner Jerry Jones.
“The Cowboys have created $2 million in cap space in a re-worked deal for safety Malike Hooker, per sources. Add that to the $9.5ish million on Steele. Still can restructure deals of Kenny Clark, Quinnen Williams, DaRon Bland, Osa Odighizuwa, Jake Ferguson if they choose.” — Todd Archer
Details on Terence Steele’s Contract Restructuring
Before the new agreement, Steele was under a five-year, $82.5 million contract signed in 2023, with nearly $48.5 million owed over the next three years. Initially considered a possible cap casualty, Steele’s contract now guarantees $22 million with a base value guaranteed of $33 million, potentially increasing to $36 million with incentives. This adjustment eliminates concerns about his future with the Cowboys for at least the 2026 season.
The restructure sidesteps the speculation that Steele could have been released with a post-June 1 designation, which would have saved Dallas roughly $14 million. Instead, the revamped deal ensures continuity for the right tackle heading into the upcoming season.
Malik Hooker’s Financial Terms Altered to Offer Cap Relief
Similarly, Malik Hooker’s contract was adjusted from a $7 million base salary to a lower guaranteed amount paired with added incentives. These performance-related incentives give Hooker potential earnings beyond the new base if he meets certain targets, while also helping the Cowboys reduce immediate cap obligations.
Hooker’s restructuring represents a strategic approach to balancing financial flexibility with rewarding player performance, aligning with Dallas’ broader offseason roster management goals.
Roster Impact as Jerry Jones Prioritizes Cap Management
Jerry Jones has initiated decisive moves before the official start of the league year by restructuring key player contracts. These financial adjustments coincide with more substantial roster changes, including trades aimed at addressing positional weaknesses that emerged following the Parsons trade.
Cowboys Acquire Rashan Gary to Reinforce Pass Rush
In a significant defensive move, the Cowboys traded a 2027 fourth-round pick to the Green Bay Packers for defensive end Rashan Gary. This acquisition addresses Dallas’ need for a stronger pass rush after Parsons’ departure, marking a crucial roster upgrade.
Gary, who spent his first seven NFL seasons with Green Bay, carries a 2026 base salary of $19.5 million and a cap hit near $28 million. Although the Packers will incur approximately $17 million in dead money, they gain sizable cap space for both 2026 and 2027.
For the Cowboys, the $19.5 million salary in 2026 and potential $22.5 million payout in 2027 represent a manageable commitment over two seasons, especially considering the expected impact on the defensive front.
Throughout his career, Gary has tallied 46.5 sacks and 270 combined tackles, including a Pro Bowl selection in 2024. In the most recent 2025 season, he started 15 games, recording 7.5 sacks, seven tackles for loss, and a forced fumble, showing his ability to contribute consistently.
The move reunites Gary with former Packers teammate Kenny Clark, providing Dallas a familiarity boost within the defensive line, and bolsters a critical area where the Cowboys struggled to maintain consistent pressure on opposing quarterbacks last season.
The Cowboys have created $2 million in cap space in a re-worked deal for safety Malike Hooker, per sources. Add that to the $9.5ish million on Steele. Still can restructure deals of Kenny Clark, Quinnen Williams, DaRon Bland, Osa Odighizuwa, Jake Ferguson if they choose.
— Todd Archer (@toddarcher) March 9, 2026
