Dak Prescott’s Record-Breaking Contract: What You Need to Know

Just hours before the kickoff of the new NFL season, Dak Prescott made headlines by signing a megadeal with the Dallas Cowboys that averages a staggering $60 million per year. However, are these figures as impressive upon closer examination?

After a lengthy negotiation period, Prescott’s agent, Todd France, and the Cowboys reached an agreement right before Week 1. The deal reportedly makes him the highest-paid quarterback in NFL history, with a contract extension running through 2028 worth a total of $240 million over four years, including $231 million guaranteed.

The Fine Print: Guarantees and Structure

Understanding NFL contracts comes down to the guarantees players actually receive upon signing. In Prescott’s case, he is set to receive $129 million guaranteed, which includes an $80 million signing bonus and fully guaranteed salaries for 2024 ($1.25 million) and 2025 ($47.75 million).

But that’s just the beginning. Further guarantees will kick in as the years progress. For example, his $40 million salary for the 2026 season will be fully guaranteed if he remains on the roster by March 16, 2025, bringing his total to $169 million in guaranteed money. In 2027, his $45 million salary will be guaranteed by the fifth day of the 2026 league year, totaling $214 million in guarantees. Finally, an additional $17 million of his 2028 salary (set at $55 million) will also be guaranteed in a similar timeframe, which raises the potential guarantee to $231 million.

Interestingly, Prescott’s contract extension essentially adds onto his previous contract, which included a guaranteed $29 million that moves into the signing bonus to lower the cap number at the start of this deal.

Dak Prescott is set to lead the Cowboys to success for years to come.

What Does This Mean for the Cowboys?

In reality, Prescott’s chance of achieving this $231 million guarantee appears realistic as he is seen as the franchise quarterback, a role that the Cowboys are unlikely to change anytime soon. Additionally, the Cowboys have a tendency to refrain from making adjustments to existing contracts, indicating a level of stability in Prescott’s role with the team.

However, the structure of the contract suggests that some form of salary restructuring will be necessary in the coming years, particularly in 2025 when his cap number could reach an eye-watering $89.9 million. At that point, the Cowboys may need to convert salary into another signing bonus to lighten the financial load. Eventually, this could necessitate the introduction of void years at the end of the contract to distribute cap hits more evenly into the future.

The Impact on the League

Ultimately, the Cowboys maintain their most valuable asset, and Prescott has maximized his leverage to secure an impressive deal—not just for himself but potentially for other quarterbacks approaching contract renegotiations, such as Brock Purdy in San Francisco. Additionally, this new deal bumps Deshaun Watson’s previous record of $230 million for guaranteed money out of the top spot, a move that many in the league view positively.

Conclusion: An Era of Change

Dak Prescott’s new contract marks a significant moment not only for him and the Cowboys but also for the NFL as a whole. As contracts become increasingly complex and financial figures soar, the way quarterbacks negotiate their worth is transforming. With new stars emerging and veterans like Prescott setting new benchmarks, the landscape of the league is undoubtedly shifting. The next few seasons promise to be exciting, not just on the field, but in the offices where deals are made.

The financial stakes have never been higher for NFL quarterbacks.