After months of back-and-forth and a very public falling out, there was finally a resolution to Micah Parsons' contract dispute with the Cowboys on Thursday evening. Dallas decided to trade him to Green Bay, and it was the Packers who gave him the contract he wanted.
The two blockbuster moves sandwiched together and reported on Aug. 28. First, it was the trade of Parsons to Green Bay. The Packers had been rumored to be a landing spot, and the trade was agreed to in principle three days before it was announced. The reason it took so long to be made public was because certain details were being finalized.
These details included Green Bay’s second blockbuster move: rewarding Parsons with the largest contract ever given to a defensive player in NFL history. The Packers signed him to a four-year, $188 million deal with $136 million guaranteed.
Moves of that magnitude carry major ramifications. First, the Cowboys traded Parsons, who was in the final year of his previous contract, and received Kenny Clark in return. Second, the Packers committed to Parsons with a contract that takes effect in 2026.
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Here's more on how the Parsons trade is impacting earnings as well as the salary cap for both Dallas and Green Bay.
MORE MICAH PARSONS TRADE:
- Trade details for blockbuster deal between Packers and Cowboys
- Trade grades: Packers earn high marks, Cowboys save face
- Winners and Losers: EDGE rushers, NFC contenders impacted by deal
- Bender: Will Parsons be Reggie White 2.0 for Packers?
- What Jerry Jones said about Parsons trade at tense press conference
- When Cowboys and Packers are set to square off in 2025
- How Parsons deal impacts Packers' defensive depth chart
- What Kenny Clark brings to Cowboys defensive line
- Dallas sports fans go through Luka deja vu with Parsons trade
- Full Micah Parsons contract dispute timeline with Cowboys
Micah Parsons contract details
Parsons inked a massive four-year, $188 million extension with the Packers. It is the largest deal for a defender in history in terms of both annual value and guaranteed money. When the contract begins in 2026, the EDGE rusher will earn $47 million annually. He has $136 million guaranteed over the four-year period
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What does Micah Parsons' contract mean for Packers?
Parsons' contract means for the Packers that he will be playing in 2025 for much less than he will in the four years following. The EDGE rusher is technically still playing under his rookie contract. Dallas had picked up Parson's fifth-year option for the 2025 season, meaning he would have a cap hit of $21,324,000. He carries that with him to Green Bay and will cost the franchise that much against their salary cap in 2025. Then, his cap hit surges to $47 million starting in 2026.
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How does the Micah Parsons trade impact Cowboys/Packers salary cap?
Several factors affected the salary cap space for both teams. For Dallas, trading Parsons cleared more than $21 million from its books, as he was set to earn that amount on his fifth-year option. Because that option did not include a signing bonus, it counted entirely as salary. That $21 million now shifts to Green Bay for this season. The Cowboys also take on the salary of defensive tackle Kenny Clark, who came back in the trade, but the Packers will cover the bulk of it. As a result, Dallas will pay Clark only $2.3 million this season, according to Spotrac.
Green Bay’s cap situation is more complicated. The Packers not only add the $21 million owed to Parsons but also absorb $35 million in cap from trading Clark. In total, that means they are paying $56 million this year to acquire Parsons and have him on the field in 2025. According to Over the Cap, Green Bay has $1.45 million in remaining cap space.