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Dallas Cowboys sign Dak Prescott to record-breaking $160 million contract

NFL schedule: Dallas Cowboys at Tampa Bay Buccaneers
Oct 11, 2020; Arlington, Texas, USA; Dallas Cowboys quarterback Dak Prescott (4) calls a play in the second quarter against the New York Giants at AT&T Stadium. Mandatory Credit: Tim Heitman-USA TODAY Sports

It’s been 18 months in the making. Contract negotiations taking place on a near never-ending loop. But it’s finally here. The Dallas Cowboys and Dak Prescott have agreed to terms on a new contract.

In absolutely shocking news, the Cowboys made the announcement themselves on Monday. This keeps the star quarterback off the NFL free agent market and eliminates what would have been a massive 2021 salary cap hit for Dallas.

“The Cowboys announced Monday night that Prescott and the club have agreed to terms on a new contract. Terms have not been disclosed; further information and details will be released at a formal press announcement on Wednesday, the club said in a press release,” the Cowboys announced Monday. “Both sides have agreed to terms before Tuesday’s tentative deadline to place a second straight franchise tag for Prescott.

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Dallas Cowboys and Dak Prescott agree to terms on a new contract

Dak Prescott contract: Dallas Cowboys
Sep 13, 2020; Inglewood, California, USA; Dallas Cowboys quarterback Dak Prescott (4) runs onto the field before the game against the Los Angeles Ramsat SoFi Stadium. Mandatory Credit: Kirby Lee-USA TODAY Sports

As noted above, there’s been drawn-out negotiations between the star quarterback and his team. Things seemed to take another turn once Prescott suffered a devastating ankle injury five games into the 2020 season.

It’s obvious that the two sides did what they could to get something done before the NFL franchise tag deadline. If that did not happen, the Cowboys would have had to pay out $37.7 million against the 2021 NFL salary cap. Given their financial situation, this seemed to be a less-than-ideal scenario.

Read More: NFL salary cap tracker: Where each team stands in 2021

Terms of Dak Prescott contract extension with the Dallas Cowboys

Hard Knocks, Dallas Cowboys
Dec 22, 2019; Philadelphia, Pennsylvania, USA; Dallas Cowboys quarterback Dak Prescott (4) runs off the field after losing to the Philadelphia Eagles at Lincoln Financial Field. Mandatory Credit: James Lang-USA TODAY Sports

According to ESPN’s Adam Schefter, Prescott’s contract will pay him $160 million over four seasons. He nets a record $126 million guaranteed while averaging $42 million per season over the course of the first three years of the contract. That’s a massive pay day. Absolutely massive.

The previous high in terms of fully-guaranteed cash went to Atlanta Falcons quarterback Matt Ryan when he received $94.5 million back in 2018. Despite signing a 10-year, $450 million contract with the Kansas City Chiefs last year, Patrick Mahomes received a mere $63.08 million in fully-guaranteed cash. Yeah, Dak Prescott cashed in big time here.

Antonio Brown to the Kansas City Chiefs?
Feb 7, 2021; Tampa, FL, USA; Kansas City Chiefs quarterback Patrick Mahomes (15) reacts during the fourth quarter against the Tampa Bay Buccaneers in Super Bowl LV at Raymond James Stadium. Mandatory Credit: Mark J. Rebilas-USA TODAY Sports

As for the further information coming from Prescott’s extension, the remaining numbers are absolutely stunning. He gets a $66 million signing bonus and will earn a total cash amount of $75 million in Year 1. It remains to be seen how the Cowboys’ 2021 NFL salary cap will be impacted by this. But it’s safe to assume that Prescott’s cap hit is going to be nowhere near what it would have been under the franchise tag.

Read More: Dallas Cowboys want to sign Dak Prescott ‘now’, contract could reportedly approach $40 million annually

Prescott, 27, has more than earned it. Over the course of 69 career starts, the former mid-round pick from Mississippi State has put up 130 total touchdowns against a mere 40 interceptions. Back in 2019, Prescott passed for north of 4,900 yards with 30 touchdowns and 11 picks.

There’s going to be a ton of financial ramifications that comes with this massive Dak Prescott news. What we do know is that he’s finally locked up in Big D. That’s no small thing for the Pro Bowl signal caller.