The Dallas Cowboys have several major financial decisions on the horizon, but none loom larger than Micah Parsons’ upcoming contract extension.
The All-Pro edge rusher is eligible for a long-term deal in 2025, and while the Cowboys have historically waited on massive extensions, every moment they delay is a gamble.
If stars like Trey Hendrickson and T.J. Watt sign new contracts before Parsons, the price tag for No.11 is going to skyrocket.
This isn’t just speculation—it’s the financial reality of the modern NFL.
Edge rusher salaries are rising rapidly, and every new deal resets the market. If Dallas waits too long, they will be paying at the top of the market.
The Current Market for Elite Edge Rushers
Right now, the edge rusher market is anchored by the likes of Myles Garrett, who signed a record-breaking deal with the Cleveland Browns in 2025 worth $204.7 million, including $122.7 million in total guarantees.
The deal’s average annual value (AAV) is $40 million, which is significantly higher than any other edge rusher.
That’s a lot of money, and it’s certain to keep the competition fierce! T.J. Watt’s current deal, signed in 2021, pays him $28 million annually. Around $25-$30 million annually was the standard until Garrett blew it up.
Micah Parsons is not just in that conversation; he might be better.
Since entering the league in 2021, Micah Parsons has posted 52.5 sacks, made three straight All-Pro teams, and terrorized quarterbacks with his elite speed and pass-rush instincts.
He’s widely considered a top-3 defensive player in the NFL. His next contract will reflect that distinction.
Why Trey Hendrickson Matters to Parsons’ Contract Talks
Trey Hendrickson may not be quite as dynamic as Parsons or Watt, but he’s a proven pass rusher in his own right.
With 43 sacks over the past three seasons, Hendrickson has been a model of consistency for the Cincinnati Bengals.
Entering the final year of his deal, he’s reportedly seeking a new contract—potentially before the 2025 season.
If Hendrickson signs a new deal in the $30-$35 million per year range, it sets a new floor, not ceiling, for Parsons. Even if Hendrickson’s deal is slightly less than the top of the market, it still bumps everyone else up. Why?
Because Parsons’ camp will use any new contract as leverage, pointing to higher average salaries and guarantees as justification for a record-setting payday.
T.J. Watt’s Upcoming Extension
T.J. Watt is also approaching the end of his deal.
Though he’s still under contract through 2025, the Steelers are known for locking up stars before they reach the final year of their contract.
Watt’s extension will be more expensive than his last one, and if it comes before Parsons’ deal is finalized, it will raise the price even further.
Watt is a former Defensive Player of the Year and continues to be dominant.
If he inks a new deal worth $38-$40 million annually, Parsons will certainly demand more.
He’s younger, faster, and plays a more versatile role in the Dallas defense. If the Cowboys haven’t signed him before, and Watt re-signs in Pittsburgh, they’ll be negotiating from behind.
The Risk of the Cowboys Waiting to Extend Micah Parsons
Stephen Jones has been known for his cautious approach to big contracts. While it’s a strategy that occasionally saves the Cowboys money, it has burned them more often than not.
Waiting too long on Dak Prescott cost Dallas tens of millions. Delaying CeeDee Lamb’s extension resulted in an overpay that could’ve been avoided with earlier action.
If the Cowboys wait until after Hendrickson and Watt sign new deals, Parsons’ price tag could easily exceed $40 million per year.
That’s quarterback money—and it could strain Dallas’ cap in the future, especially with Dak and Lamb already on high-dollar deals.
Micah Parsons: The Face of the Cowboys Defense
Micah Parsons is the face of the Cowboys’ defense and one of the most dominant players in the NFL.
If Dallas wants to avoid another contract saga, they should act now. Every day they wait increases the odds that Trey Hendrickson or T.J. Watt reset the edge rusher market—again.
Locking up Parsons now, even if it’s expensive, is smarter than letting the market climb higher. Delay could cost Dallas tens of millions, and risk alienating their most valuable defensive player.
