RT Terence Steele, Cowboys agree to $86.8M extension

The Dallas Cowboys and right tackle Terence Steele agreed on a five-year, $86.8 million contract extension on Sunday that includes guarantees of $50 million.

The agreement could be worth as much as $91.8 million, Steele's agent Erik Burkhardt confirmed to ESPN.

At the base value, the contract is worth $17.36 million annually. Lane Johnson of the Philadelphia Eagles is the highest-paid right tackle per season in the NFL at $20.18 million, per Spotrac.

Steele, an undrafted free agent from Texas Tech, signed with the Cowboys in May 2020. This past March, he was assigned a one-year, $4.3 million tender by the Cowboys. He was due to become a free agent in 2024.

It's the latest big deal for the Cowboys, who since the start of the league year in March have signed cornerback Trevon Diggs (five years, $97 million) and guard Zack Martin (two years, $36.85 million) to contracts. Running back Tony Pollard also is playing on the franchise tag worth $10.09 million for the 2023 season.

Owner Jerry Jones is going to need to dig further into the bank account in the coming months. Quarterback Dak Prescott and wide receiver CeeDee Lamb are eligible for extensions, and linebacker Micah Parsons will command a huge contract when he becomes extension-eligible in 2024.

Steele, 26, has played in 45 games (40 starts) for the Cowboys. He tore an ACL in Week 13 last season against the Houston Texans, and coach Mike McCarthy has said Steele will be ready for Week 1 when the Cowboys visit the New York Giants next Sunday night.