ESPN Senior NFL Insider Adam Schefter broke the news of the record-setting deal on Twitter earlier this evening. The $160 million deal includes $126 million guaranteed and also includes no-trade and no-tag clauses in the contract. In addition, Prescott can earn up to $164 million if he fulfills the incentives added to the new deal.
According to ESPN, the quarterback’s $66 million signing bonus is the highest in NFL history. The Cowboys will owe Prescott $75 million in year one, Schefter reported. Additionally, he will receive an average of $42 million per season during the first three years of the new contract.
The new deal between Dallas and Prescott is years in the making. After suffering a season-ending ankle injury in Week 5 of the 2020 season, the organization is confident the QB will fully recover and return to his Pro Bowl-caliber play.
Dak Prescott and Dallas Cowboys Reach Historic Deal After Negotiating For Years
The Dallas Cowboys are expected to place the franchise tag on Dak Prescott, again. However, this time around it will be a procedural matter only. Some expected the organization to utilize the tag once again without a long-term deal agreed. It would’ve been the second year in a row that Dallas used the franchise tag on their quarterback. Yet two years later after negotiations began, and the richest contract in club history signed, Prescott is making NFL history.
Dallas avoided using the franchise tag, which would have given Prescott a salary for next season around $37.7 million. By avoiding the tag and coming to terms, the Cowboys will now be able to spread out his salary cap hit. Therefore, the salary-cap number for this season will be $22.2 million instead of $37.7 million, which gives the team more salary flexibility.
Supposedly, the organization preferred a five-year deal to stretch the cap hit out even further. But Prescott and his team stuck with a four-year deal, which means he will be a free agent when the NFL renegotiates its TV contracts in 2025. A formal team announcement is scheduled for this Wednesday.
In 2016, the Cowboys selected Dak Prescott out of Mississippi State with their fourth-round pick. During his five seasons in Dallas, he’s already earned a team-record of seven 400-yard passing games and 24 rushing touchdowns – the most by any Dallas quarterback. He only falls behind Tony Romo in 300-yard passing games with 15. Furthermore, he’s been clutch when it mattered. Prescott has an impressive 15 game-winning drives. The quarterback has a career 42-27 record, 17,364 passing yards, 106 touchdown passes, and 40 interceptions.