Dallas Cowboys quarterback Dak Prescott is poised to become the highest-paid player in NFL history, having signed a four-year, $240 million extension, according to ESPN’s Adam Schefter. The deal includes $231 million in guaranteed money, as reported by CBS Sports’ Jonathan Jones.

This announcement comes just weeks after the Cowboys secured Prescott’s top receiver, CeeDee Lamb, with a four-year, $136 million extension. Lamb’s contract will average $38 million annually starting in the 2025 season, initially costing $8.75 million against the cap in 2024, but rising to about $35.5 million in 2025, per Spotrac.

Prescott’s landmark contract grants him a record average annual salary of $60 million through the 2028 season. Before this deal, he was set to have a cap hit of $40 million in 2025, but that figure is now expected to drop below $30 million due to the structure of his extension, allowing over $26 million of his salary to be prorated to future years, as noted by ESPN’s Todd Archer.

Currently, the Cowboys hold $65 million in cap space for 2024, per Spotrac. However, Prescott’s estimated cap hit for 2024 could exceed $55 million. If the Cowboys had let him enter free agency before the season, they would face an NFL-record dead cap total of $95 million post-season.

According to Fox Sports’ Jay Glazer, the Cowboys view Prescott’s contract as “a very salary cap-friendly deal,” enabling them to pursue future moves. The Cowboys have now committed $331 million in total guaranteed money to both Prescott and Lamb, per Spotrac.

This figure may increase as Dallas shifts focus to extending defensive standout Micah Parsons. In April, the Cowboys exercised Parsons’ fifth-year, $21.3 million option for 2025. Given Lamb’s successful contract negotiations, Parsons may have leverage to secure a new deal before 2025, potentially targeting a contract comparable to San Francisco 49ers defensive end Nick Bosa’s record annual average of $34 million.

The Cowboys appear to be structuring their contracts to create cap space for 2024, facilitating a potential deal for Parsons. Dallas aims for a deep playoff run with their three stars before facing future salary cap challenges.