Here’s How Much Dak Prescott Will Make – After Taxes – With His New Contract

ByJoey Heldon March 16, 2021inArticles›Sports News

Dak Prescott just signed a massive deal with the Dallas Cowboys. The contract was years in the making, with both sides going back and forth. The Cowboys slapped the franchise tag on Prescott last season; that gave him plenty of money, but no job security.

So signing the four-year, $160 million extension was a big sigh of relief for Prescott. The contract includes a $66 million signing bonus (an NFL record) and a guarantee of $126 million.

Thanks to the way the deal is structured with all that guaranteed money – and a favorable living situation – Prescott will make nearly as much in guaranteed money as Patrick Mahomes , who signed a record-setting, ten-year extension with the Kansas City Chiefs last year that included $141,428,000 in guaranteed wages.

If Prescott chooses to live in Texas, he’ll have the benefit of no state income taxes. As Sportico first reported , that means he’ll keep a little more than $75.5 million of his $126 million guaranteed salary.

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Despite Mahomes earning $15.4 million more than Prescott in guaranteed money, Mahomes will only take home about $75.8 million – just $243,233 more than Prescott.

Mahomes presumably lives in Kansas City, which means he’ll pay 5.4% in income taxes and 1% in local income tax. And when you’re earning hundreds of millions of dollars, that percentage equates a significant chunk of change.

Prescott doesn’t get off scot-free, of course. As a part of the highest tax bracket, he’s still giving 37% of his earnings to federal taxes. Jock taxes are also always prevalent. And even though Texas doesn’t have state income tax, there are local and sales fees, too, which can reach as high as 8.25%.

These numbers are also only considering the guaranteed portions of each quarterback’s salary. If they play through their entire deals on their respective teams, Mahomes will earn a much larger amount overall.

Still, this comparison shows the benefit of living in a state with no income tax. And that plays out very nicely for Prescott.

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Dak Prescott Will Make More Than $30 Million Next Year – But Will He Be Happy?

ByJoey Heldon July 2, 2020inArticles›Sports News

It seems like ever since Dak Prescott replaced an injured Tony Romo , he’s had to deal with questions about his future. At first, it was whether he’d hold onto his starting job. Then, it was whether he could return the Dallas Cowboys to postseason greatness. And lately, it’s been whether he’ll get the contract he wants from the team.

We have an answer to that last one: No, at least not yet.

The Cowboys placed the franchise tag on Prescott, which will give the quarterback $31.4 million next year. The two sides do have until July 15 to agree on a long-term deal, but it’s looking likely that Prescott will be playing under the franchise tag this year.

In most situations, receiving more than $30 million to play one season of football would be a dream come true. But Prescott was looking for a long-term contract worth about $40 million per season.

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Chris Graythen/Getty Images

Prescott and the Cowboys never really seemed close to coming to terms, and that could be an underlying issue. It may just be that paying Prescott that much money for several seasons could hurt the team financially. Or could it be something bigger?

Quarterbacks have been dominating the market over the past few years as more teams realize the importance of the position. However, even with the rising price of franchise quarterbacks, the most expensive player next season will be Russell Wilson , at $35 million. Prescott wanted more than that, and he doesn’t have the career pedigree of some of the other highest-paid quarterbacks, including Ben Roethlisberger and Aaron Rodgers .

Instead of taking over that top spot, Prescott now finds himself the seventh-highest-paid quarterback in the league. That’s still nothing to scoff at, but it presents the possibility that the Cowboys don’t view Prescott in that same tier. The team gave extensions to running back Ezekiel Elliott and wide receiver Amari Cooper ; they could have done the same with Prescott, yet didn’t.

The COVID-19 pandemic adds another wrinkle to any contract negotiations. Professional sports teams are likely to lose a lot of money this year, and probably for several years to come. Maybe the Cowboys looked at the landscape and thought they’d say some money this year.

Whatever the case may be, it looks like Prescott is going to have to prove himself once again this year. If he can put up solid numbers and lead the Cowboys deep into the playoffs, he’ll probably get the exact number he wants.

For now, he’ll have to be content playing under the franchise tag. It’s an expensive one-year tryout that could pay tremendous dividends.

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