The Dallas Cowboys are facing a financial headache that could have serious implications for their future. While the need to extend Micah Parsons is obvious-he’s arguably the best defensive player in the league-an expensive misfire in the form of Terence Steele‘s contract is creating significant complications for Dallas’ front office.
Parsons, still on his rookie deal, is entering the final year of his contract. The Cowboys cannot afford to let a generational pass-rusher test free agency. Extending him should be a no-brainer. But thanks to the team’s commitment to Steele, a right tackle who hasn’t lived up to his price tag, it’s not as easy as writing a big check.
Terence Steele’s contract is becoming a liability
When the Cowboys signed Steele to a five-year, $82.5 million extension, they believed they were locking up a foundational piece of the offensive line. At the time, the deal seemed like a prudent move for a player showing promise. Now, it’s increasingly viewed as a burden.
Steele did play all 17 games in 2024 and never missed a snap-something you expect from a high-paid lineman. But performance-wise, he didn’t deliver. According to Pro Football Focus, Steele earned a 67.0 overall grade, ranking 47th among 140 offensive tackles. In the run game, he held his own. But as a pass protector, his 57.5 grade ranked 90th, a massive concern for a team trying to protect its quarterback and push for playoff success.
To be blunt, the Cowboys didn’t sign Steele to a $16 million per year deal to be a middle-of-the-pack lineman. They signed him to be elite. And that’s not what they’ve gotten.
When comparing Steele‘s deal to the team’s other high-value contracts, the disparity becomes glaring. Dak Prescott is expensive, but he’s the face of the franchise. CeeDee Lamb just got paid top-tier wide receiver money, and he’s one of the best in the league. Trevon Diggs, when healthy, is a game-changing cornerback. These players may cost a lot, but they play like stars.
Steele? Right now, his contract is an anchor.
How Steele’s deal complicates Parsons’ future
The Cowboys finished the 2024 season at 7-10, and that was with Micah Parsons carrying just a $5 million cap hit. In the near future, if Dallas locks him up as expected, that number could balloon dramatically-possibly into the $30 million-per-year range, depending on structure and guarantees.
That means more money tied up in elite players, and less flexibility to build the rest of the roster. While extending Parsons is non-negotiable, the financial gymnastics required to do it-while also keeping a competitive team on the field-are now more difficult because of the money committed to underperformers like Steele.
The Cowboys can still make it work. A Parsons extension will likely come with cap-friendly structuring in its early years. But that only buys so much relief when Steele‘s contract is eating a chunk of space that could have gone elsewhere.
If Dallas is serious about contending and maximizing Parsons‘ prime years, they may have to make some tough decisions. Whether it’s restructuring Steele‘s deal, seeking trade options, or cutting elsewhere, something has to give.
Because while Terence Steele‘s price tag was once based on promise, Micah Parsons‘ price tag is rooted in proof. And Dallas can’t afford to let the latter be jeopardized by the former.
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