Patrick Mahomes vs. Dak Prescott: How Their Contracts Compare

Patrick Mahomes of the Kansas City Chiefs is currently one of the most beloved NFL quarterbacks and is often marketed. As one of the faces of the NFL because of his flamboyant playing style and demeanor, Patrick Mahomes’ contract reflects his immense value to the league and his team.

Mahomes has already won two MVPs and three Super Bowl MVPs. This shows that he has transformed the notion of how a quarterback should play. It is not a surprise that the encounter became a basis for future contract negotiations.

Especially when Mahomes signed his record-breaking ten-year $450 million extension in 2020. However, as we look at the current market for quarterback deals. It no longer sits first in AAV and guarantees, even though it still has the largest total overall.

Patrick Mahomes’ Groundbreaking Contract in 2020

When Mahomes took an extension with the Chiefs back in 2020, it was huge in terms of years and overall money. The length of 10 years was very special in NFL contracts, in general, let alone for one person. As contracts with durations longer than that are almost nonexistent.

Patrick Mahomes’ $450 million contract became sensational not only for its duration but for the total value and the level of commitment and investment it signaled, underscoring his importance to the Chiefs. The structure of Patrick Mahomes’ contract ensures he will remain a Chief for the long term.

While Kansas City was provided with roster and salary cap ammunition to construct a competitive roster around him. This long-term investment held Mahomes; he will stay with the team substantially through his 30s. Giving the Chiefs a thing most teams do not have stability at the position of quarterback.

While Mahomes’ contract has all the making of a record-setting deal, it is still back-ended. When compared to other recent quarterback deals, contains fewer guarantees, which makes evident how much the quarterback market has evolved even in the past couple of years.

How Mahomes’ Deal Stacks Up in 2024

Entering 2024 Ellison Mahomes still has the largest contract in total money in the NFL. However, it is no longer arguably the most lucrative when other components including the average annual value (AAV) or guaranteed money. Which have assumed new importance as quarterbacks enter shorter-year, higher-dollar contracts.

Patrick Mahomes’ contract provides him an average salary of $45 million per year, a figure now eclipsed by several other quarterbacks. For instance, his AAV currently stands outside the NFL’s top 10 among quarterbacks, a position he held when he first signed the contract.

Other elite quarterbacks secure more money annually based on shorter contracts recently signed with a focus on AAV. This approach has been embraced since it enables players to renounce earlier with a view of benefiting from increasing players’ salary caps.

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Guaranteed Money in Contracts

Moreover, the ranking of Mahomes’ contract is low based on the guaranteed money that is to be paid to a player. They are slowly becoming critical to players so that means that they will be able to receive their cash no matter what. The performance of their team or whether they are injured or not.

Mahomes may be set financially because of the structure of the deal. But this is not even close to the kind of guaranteed sums top quarterbacks have recently earned. For instance, Deshaun Watson agreed in March 2022 to a fully guaranteed $230 million five-year deal with the Cleveland Browns.

While Watson’s agreement wasn’t quite as long and with less total value. As Mahomes gets, there is far more in terms of the protection it offers Watson from an upfront and total value evaluation standpoint that Mahomes’ deal does not.

Dak Prescott Takes the Top Spot in 2024

Dallas Cowboys quarterback Dak Prescott signed a new deal right before the start of the 2024 season. However, this pushed him to the forefront in terms of both AAV and guaranteed money. Prescott’s contract is the largest in NFL history in terms of average annual earnings and guarantees.

Emphasizes the evolution of NFL contract structures. While his total contract value isn’t as high as Mahomes’, Prescott is set to earn $56 million annually on average. While solidifying him as the league’s highest-paid quarterback in terms of yearly earnings.

Prescott’s contract also leads the NFL in guaranteed money, exceeding Watson’s record by $1 million. This significant increase in guaranteed money reflects Prescott’s strong negotiating position. The Cowboys’ commitment to keeping their franchise quarterback secured long-term. For Prescott, this structure allows him to earn a substantial amount over a shorter time, giving him the option to negotiate again sooner as the market grows.

Comparing Contract Strategies: Stability vs. Flexibility

Mahomes and Prescott’s contracts are two different approaches that exist in the NFL. The deal was designed to bring long-term security to Mahomes and the Kansas City Chiefs football franchise. Extending its length may provide security to Mahomes knowing he has a home in Kansas City.

The extra length also gives the team wiggle room to handle the cap over the years. That approach, however, would see Mahomes possibly lose the chance of earning even much bigger money in the future, particularly with quarterbacks’ wages set to increase exponentially.

While Prescott’s contract focuses more on flexibility and offers an optimum number of revenues in the short run. This way, thanks to a high AAV and large guarantees, Prescott has arranged business in a way that he will be able to reap from the constantly ascending NFL salary cap.

While not worrying about his contract renegotiation until his current deal is up. Such a strategy has become popular as players come to realize that the essence of shorter deals with larger AAVs keeps them aligned with the rising market trend.

The Changing Landscape of NFL Quarterback Contracts

The NFL quarterback contract structure has grown rather dynamic. Particularly the focus on the amount of money to be guaranteed and AAV as opposed to the total contract value. Mahomes’ deal could still perhaps be the largest of all time by total value. But players today are trending towards less long-term money and more annual money and guarantees.

This is a shift as the NFL players have more bargaining power now because in the league having a good quarterback is critical. Mahomes is still a very accomplished quarterback in the league through the year 2024. Moreover, his future with the Chiefs is tied to him with a monster contract.

However, as the market grows, contracts such as Prescott’s prove that star quarterback players can still negotiate. Their revenue share though is willing and able to adapt as wages move up the ladder. While Mahomes’ contract plays out. It will be fascinating to find out if the Chiefs & Mahomes decide to embark on the restructuring exercise.

If he remains consistent with the long-term strategy despite also embracing the market-led approaches to renegotiate his contract frequently. The deals NFL quarterbacks are going to sign in future will continue changing as high-profile players. Such as Prescott define how new contracts should look like.