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The contract standoff between Dallas Cowboys owner Jerry Jones and star linebacker Micah Parsons has reached a stalemate, with both sides offering different versions of events surrounding negotiations that began in March.

Jones has repeatedly characterized their discussions as a “handshake” agreement, while the two-time All-Pro has insisted any serious talks must involve his agent.

ESPN insider Adam Schefter provided new details Thursday about the specific terms Jones believed were agreed upon earlier this year.

“Jerry Jones had what he thought was an agreement for a deal that averaged $40.5M per year. Five-year deal, $40.5M, that was the agreement,” Schefter said.

The proposed $40.5 million annual average would have made Parsons the highest-paid non-quarterback at the time.However, the landscape shifted when the Pittsburgh Steelers linebacker T.J. Watt signed a record-breaking $41 million per year extension recently.

Cleveland Browns pass rusher Myles Garrett also secured a four-year, $160 million deal in late March.

Schefter noted uncertainty about whether the $40.5 million figure included Parsons’ remaining rookie contract year.

From Jones’ perspective, the deal was settled before Watt reset the market in Pittsburgh.

The breakdown appears to stem from the procedural disagreement over agent involvement rather than financial terms.

Parsons remains under contract through 2025 after Dallas exercised his fifth-year option this offseason.

Jones has suggested the franchise tag could keep the pass rusher in Dallas through 2027, maintaining leverage while ensuring Parsons anchors their defense for years to come.