What’s the deal with Lamar Jackson’s contract situation?

OWINGS MILLS, Md. — The clock is formally ticking on the Baltimore Ravens‘desired deadline with quarterback Lamar Jackson.

At the finish of the season, Ravens proprietor Steve Bisciotti spoke to Jackson and harassed the urgency to get a contract extension accomplished by the begin of free company. The Ravens need to cut back Jackson’s ballooning $74.5 million wage cap hit — which is the second highest in the NFL — to liberate room to re-sign their very own free brokers and pursue different accessible gamers to improve the roster after final season’s disappointing 8-9 season.

If Jackson chooses to not signal a brand new deal by the official begin of free company Wednesday, Baltimore can restructure the two-time NFL Most Valuable Player’s contract to create $30-plus million in cap room. But this transfer is problematic as a result of it pushes an enormous chunk of Jackson’s 2026 cap hit into subsequent season, causes his 2027 cap determine to soar even greater and stirs up questions on his future with the Ravens.

Baltimore prefers to achieve a brand new settlement with Jackson, who does not have an agent and represents himself. By placing a deal, the Ravens can open up cap room and prolong their contract past 2028, when he is presently set to grow to be an unrestricted free agent.

It’s clear that Jackson’s contact scenario has important ramifications. With a contract extension, the Ravens’ championship pursuit is extended. Without one, their relationship turns into sophisticated.

“You can play with that money all you want [by restructuring a contract],” Bisciotti mentioned in January. “That’s not what we want. We want another window, and Lamar knows that.”

What would a brand new deal with Jackson appear like?

Bisciotti’s hope has been this: plug the next quantity in the similar contract that he signed in April 2023 and transfer on.

How excessive ought to that quantity go? A 12 months in the past, when John Harbaugh was the Ravens coach, he made this prediction when discussing Jackson’s subsequent contract: “When Lamar gets paid, he’s going to be the highest-paid player in football, just like he was last time.”

To grow to be the NFL’s highest-paid participant, Jackson would want to surpass Dallas Cowboys quarterback Dak Prescottwho’s averaging $60 million per season on a four-year, $240 million contract he signed in September 2024. Prescott’s $80 million signing bonus additionally stays a league document. The most assured cash was given to Buffalo Bills quarterback Josh Allenwho totaled $250 million in ensures in March 2025.

Jackson, 29, has two years and $104 million remaining on a five-year, $260 million contract that he signed three years in the past. At the time, his common of $52 million per 12 months and his $72.5 million signing bonus each reset the quarterback market. Now, he ranks tenth amongst quarterbacks in common per 12 months and fourth in signing bonus.

It took 27 months of difficult negotiations to get the final deal accomplished with Jackson. The sides haven’t got that sort of time proper now, though Ravens basic supervisor Eric DeCosta expressed optimism lately when requested if he was assured {that a} contract extension might be reached with Jackson.

“I am,” DeCosta mentioned at the NFL mix final month. “I definitely love.”

What occurs if Jackson does not restructure his contract?

Jackson does not have a say in the restructuring of his contract. There’s a clause in Jackson’s contract that claims the Ravens can routinely decrease his 2026 cap determine by changing a portion of his $51.25 million wage right into a signing bonus and including extra void years.

The Ravens would then must resolve once they need to set off the restructuring of Jackson’s contract and the way a lot cap room they need to create by doing so.

Baltimore is projected to have between $9 million and $12 million in wage cap room heading into free company, and DeCosta talked about that Jackson’s contract is not essentially the huge domino in the group’s offseason plans. It does not sound like if Baltimore has to restructure Jackson’s contract subsequent week due to a determined want for cap house.

“We never have as much cap room as we’d like to have,” DeCosta mentioned. “But we feel like we can start at the beginning of the new league year and conduct business.”

If the Ravens need to create as a lot cap house as doable in restructuring Jackson’s contract, they’d acquire almost $38 million in further cap room by spreading out $50 million cap hit over his remaining two years of his contract and two void years. The excellent news is Baltimore would decrease Jackson’s 2026 cap determine from $74.5 million to $37 million. The dangerous information is Jackson’s 2027 cap quantity would soar to $87 million, which might be the highest in the NFL.

What occurs subsequent offseason if there is not any contract extension?

This is when the drama actually begins. Without a contract extension, Jackson would enter subsequent offseason with one 12 months left on his present deal.

If Jackson bounces again from a disappointing 2025 season, he would have all the leverage in a quarterback market that would explode. In 2027, 4 of the league’s finest younger quarterbacks — Caleb Williams, Jayden Daniels, Drake Maye and Bo Nix — are all eligible for contract extensions for the first time.

The stress could be on Baltimore to get a deal accomplished with Jackson or threat shedding him to free company a 12 months later. The Ravens cannot use the franchise tag to maintain Jackson from turning into a free agent the manner they did in 2023 as a result of he has a no-tag clause in his contract. If Baltimore would attempt to commerce Jackson, he must log off on the place he would go as a result of he additionally has a no-trade clause.

The different incentive to enter 2027 with out a contract extension is it’ll give Jackson extra time to resolve if he needs to remain with the Ravens, who employed a brand new head coach in Jesse Minter and a brand new offensive coordinator in Declan Doyle this offseason.

Would or not it’s a threat for Jackson to set his sights on turning into a free agent in 2028?

There’s at all times of venture when projecting a participant’s worth two years from now, particularly one like Jackson who will flip 31 in 2028 and has taken extra hits (1,234) than another quarterback since 2018. But it is uncommon {that a} quarterback with Jackson’s résumé ever reaches free company.

Jackson has confirmed he can nonetheless play at a excessive degree regardless of the sustainability considerations that surrounds dual-threat quarterbacks. It was solely two years in the past when Jackson recorded profession highs with 4,172 yards passing and 41 landing passes.

But sturdiness has been a difficulty with Jackson. He has sat out not less than 4 video games due to harm in three of his previous 5 seasons, together with 4 final 12 months due to a hamstring harm and a again bruise.

There have been some quarterbacks who’ve been cellular earlier of their profession who’ve performed into their late 30’s like Russell Wilson. There are different dual-threat quarterbacks like Cam Newton who had been out of the league at 32.

If Jackson needs to check free company for the first time in his profession, he has to play out the remaining two years of his present contract. No one is aware of whether or not Jackson is even considering this as a result of he does not have an agent.

The final time Jackson was requested about his contract scenario was at minicamp 9 months in the past.

“I don’t want to talk about it, if that’s OK with you,” Jackson mentioned.

When requested if turning into the NFL’s highest-paid participant sounds good to him, he replied, “It sounds good.”