"The Dallas Cowboys agreed to terms on a new contract with quarterback Dak Prescott on Monday," the Cowboys said, per Jane Slater of NFL Network. "Further information and details will be released at a formal press announcement on Wednesday."
Adam Schefter of ESPN reported it's a four-year, $160 million deal with a record $126 million in guaranteed money. The deal can reportedly max out at $164 million. Schefter later added that it's technically a six-year deal that is voidable to four years:
According to Schefter, Prescott will receive a $66 million signing bonus and will earn $75 million in the first year.
James Palmer of NFL Network put that total in perspective:
Schefter noted the Cowboys will still place the franchise tag on Prescott on Tuesday as a procedural move. Ian Rapoport of NFL Network reported Prescott's deal will also include a no-trade clause and a no-tag provision.
After news of the deal broke, Prescott's brother Tad tweeted a photo of him and Dak:
Prescott was able to obtain the security even after suffering a season-ending leg injury against the New York Giants in October. He was leading the NFL with 1,690 passing yards through the first four games in 2020.
Despite the significance of the injury, the Cowboys insisted they wanted to keep Prescott as their quarterback.
"But at the end of the day—and Andy (Dalton) knows this—this is Dak's football team. We're obviously very committed to getting Dak signed," Jones said.
The two-time Pro Bowler was due to become a free agent for the second straight year after playing last season under the one-year franchise tender worth $31.4 million.
Per Sports Illustrated's Mike Fisher, one key difference for Prescott and the Cowboys when they were talking about an extension last offseason was how many years it would be.
Fisher noted the Cowboys were offering a five-year deal worth $35 million per season with "virtual guarantees of in excess of $106 million," but Prescott preferred a four-year contract that gave him the ability to test the market after his age-30 season.
It's widely believed that the salary cap will go up after the 2022 season when the NFL will have new television contracts.
Regardless of those future implications, the most important thing for the Cowboys right now is they were able to get Prescott under contract to avoid another season of constant contract talk with their franchise quarterback.
Prescott had the best season of his career in 2019. The 27-year-old ranked second in the NFL with 4,902 passing yards, fourth with 30 touchdown passes and fourth with a 71.9 QBR.