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In a normal year, the practical deadline for signing a long-term contract with a franchised player is July 15. For Cowboys, this year’s deadline for quarterback Dak Prescott is set to change.
Since Prescott won $ 31.4 million with the franchise brand in 2020, he will be entitled to a 20 percent increase if he marks it again in 2021. That equates to $ 37.68 million. With the limit set to drop in 2021 – possibly up to $ 180 million – that’s a lot to dedicate to the starting quarterback.
In fact, if the limit reaches $ 180 million, Prescott will consume almost 21% alone.
It makes a lot more sense for the Cowboys to get Prescott to sign a long-term contract, with a maximum limit of 2021, before the deadline for applying the franchise tag arrives. Last year, negotiations stalled over the duration of the contract; Prescott wanted four years, the Cowboys wanted five. This year, Prescott is expected to remain even stronger in a four-year deal.
The length will be the easy part. The amount becomes more difficult, as Patrick Mahomes has an average new money of $ 45 million and Deshaun Watson receives $ 39 million.
There is another important factor at play here: the value of the contract on the subscription. Watson’s contract has an average subscription value of $ 29.11 million. The Mahomes deal has an average signing value of $ 39.8 million.
Of course, Mahomes’ signed a 12-year contract. Watson signed a four-year extension. Prescott, if he signs a four-year contract, will be back at the table after the 2024 season.
So, what will it take? In four years, $ 130 million would result in an average of $ 32.5 million. With, for example, a signing bonus of $ 60 million and a salary of $ 5 million for 2021, Prescott would have a maximum limit of $ 20 million. Additional collateral would be required, and there would be cash flow details to negotiate.
Regardless, if the Cowboys still believe that Prescott is their guy, this is the kind of business they need to do, before they have to squeeze the rest of the ceiling around a $ 37.68 million salary.
There is one more reason to close the deal before the franchise etiquette deadline. If the Cowboys applied the tag to Dak a second time, he would be entitled to a 44 percent increase from his last maximum number if he received the franchise tag at any time in the future.
To better deal with the approaching capitalization crisis and to better manage the relationship when the next contract expires, Cowboys need to prioritize completing the Dak Prescott contract before receiving what would be a $ 37 one-year contract, 68 million.