Dak Prescott, quarterback of the Dallas Cowboys, has agreed to a four-year, $160-million contract offered by the team, according to ESPN's Adam Schefter.

The deal includes $126 million of guaranteed money and a signing bonus of $66 million, which is the highest in NFL history. Prescott will receive $75 million in the first year. This is the second-biggest contract in total number, guaranteed money and average salary, only next to the 10-year, $503-million deal signed by Patrick Mahomes with the Kansas City Chiefs.

The Cowboys also announced the news on Monday without disclosing many details. ESPN reported that the franchise tag will be placed on Prescott on Tuesday as a procedural matter. The team also announced that they will hold a press conference on Wednesday.

Technically it's a six-year deal but voids to four years, which leads to a win-win situation for both the team and the player. The Cowboys will be able to maintain some flexibility with their salary cap and Prescott can enter the free-agent market in 2025.

It took the Cowboys quite a complicated deal and three offseasons to get the business done with Prescott. But are their efforts worth the gains?

Prescott was selected by the team with a No. 135 pick in the fourth round in 2016. He was made the starting QB only because Tony Romo suffered a compression fracture to the L1 vertebra in his back in a pre-season game.

Prescott's performance in his debut season was surprisingly brilliant. Not only did he throw 3,667 yards and 23 touchdowns, he also led his team to five comeback wins in the fourth quarter. He was named a Pro-Bowler and became Offensive Rookie of the Year in 2016.

Prescott was even more incredible in 2019 as he scored 4,902 yards and 30 touchdowns. That gave him the confidence to ask for a $40-million annual salary in the following offseason. The top salary back then belonged to Russell Wilson of the Seattle Seahawks and it's $35 million. The Cowboys' response was to keep him with a franchise tag worth $31.4 million.

Prescott suffered season-ending compound fracture and dislocation to his right ankle in the game against the New York Giants in the 2020 season. He had averaged 422.5 yards in the four games before that and was likely to claim the first passing leader of his career.

This time, the Cowboys decided to give what he wants, which is fairly expensive. However, if the team's owner Jerry Jones takes a look (he probably did) at the contracts quarterbacks signed in the past year – Kirk Cousins signed with the Minnesota Vikings for two years, $66 million; Ryan Tannehill reached a four-year, $118-million deal with the Tennessee Titans; the Houston Texans gave Deshaun Watson a four-year, $156-million contract, not to mention Mahomes' shocking deal with the Chiefs – Jones may feel less painful writing the check.