Cowboys restructured controversial contract to create cap space before season started

Some may feel that the Dallas Cowboys should have had some buyer’s remorse when it came to their most recent offensive line signing, but according to a new report dealing with a restructure, they aren’t showing it.

Dallas inked right tackle Terence Steele to a five-year, $82.5 million extension right before the start of the 2023 season. Already under contract as a restricted free agent, Steele’s new money was on top of the $4.3 million he was expected to make. The controversy centered around the fact that Steele’s 2022 season ended with ACL surgery, and the former Texas Tech UDFA had worked his tail off and was actually ready for the start of the season.

Steele, while playing in all 17 games, was nowhere near the ascending player he appeared to be prior to the injury. His Pro Football Focus grades plummeted, going from a 73.9 overall with a near-elite run-blocking grade of 82.1, to a 52.3 overall with a 56.1 run-blocking grade. His pass-pro grade sunk from a pedestrian 63.7 to a doggy-paddling 48.9.

Steele’s contract was structured in a way that it was essentially a three-year deal that could be escaped from rather easily after the 2025 season, leaving $46.25 million of base salary in 2026 through 2028.

According to Field Yates (via Twitter), that figure went up after the club pushed a bunch of his 2024 base salary off into the future via a restructure.

Teams creating cap space via restructures to begin the season:

Seahawks via WR DK Metcalf: $9.5M

Vikings via TE T.J. Hockenson: $7M

Falcons via DT David Onyemata: $4.85M

Cowboys via OT Terence Steele: $4.5M

The move shrinks Steele’s base salary from $7.25 million to $1.625 million for the 2024 season, shaving $4.5 million from this year’s cap hit and adding $1.125 million to each of the next four seasons. For those keeping track at home, that’s $3.375 million added to the dead money total if Dallas chooses to move on from Steele after 2025.

The hope is obviously that a year removed from the injury, Steele’s performance returns to the trajectory it had before. He played 63 snaps on Sunday in the season opener against the stout Cleveland Browns defensive line, earning a 67.9 overall grade with 58.8 pass-pro score and a 71.8 run-blocking mark.

Dallas has approximately $14.3 million in cap space prior to the impact of extending QB Dak Prescott.