His three-year contract is worth $250,000 this season and will escalate to at least $400,000 if he stays through its duration, said people in television familiar with the deal.
In addition to appearing on "NFL Live," Parcells may handle game analysis for a few late-season NFL games. He also will preview NFL games along with Will McDonough after NBC's six broadcasts of Notre Dame football games, and contribute to the weekend "Prudential Updates" if necessary.
"This is a chance to stay close to the game and hopefully provide some expertise that may not be available," Parcells said. He denied that he had broadcasting in mind as a career goal when he resigned from the Giants May 15. He had auditioned as a game analyst for NBC on March 28.
Parcells said one of the deciding factors in his becoming a studio analyst rather than a game analyst in the booth was his friendship with McDonough, one of the "NFL Live" mainstays.
"When you're doing something that's a new career endeavor, you want to talk to somebody you have confidence in, who'll give it to you straight," Parcells explained. "Will convinced me that this would be a real good opportunity."
The shift toward the studio job came within the last 10 days when Parcells sent word to NBC Sports executive producer Terry O'Neil that he preferred teaming with McDonough rather than analyzing games in the booth.
The talks were simplified because Parcells pursued the studio job for less money than it would have taken to sign him as a game analyst.
"He allowed us a very important thing," said Dick Ebersol, NBC Sports president. "In return for giving him something he clearly wanted, he was willing to make a very sensible business deal."
Parcells' contract, according to those familiar with it, allows him to leave NBC for a job as coach or general manager.
Parcells said he was aware he'd have to respond on "NFL Live" to reports he is being considered for various NFL jobs. "I've talked to Pat about it and I understand there will be some of that," he said, referring to new Knicks coach Pat Riley, who had a similar "out" clause in his NBC contract last season.