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Ravens Insider: Explaining Ravens QB Lamar Jackson’s contract situation and its implications


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The bell marking the start of a new NFL year tolls, and with it arrives a pivotal moment in Baltimore.

Monday signals the effective beginning of free agency, with the legal tampering period — when teams can contact agents of impending free agents — kicking off at noon. Wednesday at 4 p.m., players can officially put ink to paper with the start of the 2026 league year, though several deals will have long been agreed upon by then.

The Ravens enter the fray with 19 unrestricted free agents, meaning that general manager Eric DeCosta and right-hand man and vice president of football administration Nick Matteo have their hands full, especially with the possibility that three-time Pro Bowl center Tyler Linderbaum could be cashing in elsewhere, thus leaving a gaping hole in the middle of the interior of an offensive line that will need to be rebuilt given the struggles of guards Daniel Faalele (also a free agent) and Andrew Vorhees.

Baltimore’s most expensive proposition, though, revolves around the fulcrum of its organization, quarterback and two-time NFL Most Valuable Player Lamar Jackson, whom the team has been trying to sign to a contract extension to lower his $74.5 million salary-cap hit to no avail.

It’s a figure that looms large. The sum represents his value, but also a financial gravity that shapes decisions now and in the future.

Restructure

From where Jackson, 29, sits, agreeing to a deal later rather than sooner makes at least some financial sense.

If Baltimore converts a portion of his $51.25 million salary to a signing bonus and adds void years, he would get a large chunk of money now. He then could wait until next offseason — when quarterbacks Caleb Williams, Jayden Daniels, Drake Maye and Bo Nix are all eligible for what should be top-of-the-market deals — to sign his own extension that would certainly top theirs.

Another advantage he would have is seeing how he meshes with first-year coach Jesse Minter and new offensive coordinator Declan Doyle to determine whether he wanted to remain in Baltimore long-term.

The Ravens, meanwhile, would clear up about $37 million of salary cap space, on top of the approximately $9 million to $12 million they are projected to have, to address myriad needs, from edge rusher to offensive line and beyond.

The downside for Jackson in this equation, of course, is the risk of injury. A spate of maladies impacted his 2025 season, causing him to miss four games while also enduring, in most respects, the worst campaign of his eight-year career.

The downside for Baltimore is also significant. Jackson’s 2027 salary cap hit would soar to $87 million, which would be tops in the NFL.

Extension

There are advantages to Jackson signing an extension now as well.

For the quarterback, the injury risk is mitigated. When he signed his five-year, $260 million deal in 2023, it included $185 million guaranteed, and a similar formula would likely follow now.

For the Ravens, signing Jackson to an extension would clear up the same amount of space for 2026, keep his 2027 number at a manageable figure, and, more importantly, keep him in Baltimore for the foreseeable future.

This is owner Steve Bisciotti’s preference. As he said in January, simply plug new numbers into the previous contract and away they go.

As for what that new number could look like? As previous coach John Harbaugh predicted, Jackson would be the highest-paid player in football, same as last time.

That would mean a deal that would leapfrog Dallas Cowboys star Dak Prescott’s $60 million a year from the four-year, $240 million contract he signed in September 2024. Prescott holds the top mark for the biggest signing bonus at $80 million, while Buffalo Bills quarterback and 2024 NFL MVP Josh Allen got the most in guaranteed money at $250 million for the deal he signed last March.

For context, Jackson, who has two years and $104 million left on his contract, is currently the 10th highest-paid quarterback in terms of average annual value behind Joe Burrow, Allen, Jordan Love, Trevor Lawrence, Tua Tagovailoa, Jared Goff, Brock Purdy and Justin Herbert.

Void years

What would happen if Jackson doesn’t sign an extension and the Ravens go the void-year route?

Aside from his cap hit skyrocketing in 2027, so would the price of an extension, given a robust quarterback market. The Ravens would also risk losing him to free agency the following year since his contract has a no-tag clause and a no-trade clause, the latter meaning that he has final sign-off if Baltimore tried to deal him.

From the podium at the NFL scouting combine two weeks ago, DeCosta was asked the inevitable question: Is he confident that he will be able to sign Jackson to an extension? He didn’t equivocate.

“I am,” he said. “I definitely am.”

Then on Friday afternoon, Jackson posted on X an animated image of actor Denzel Washington saying “boom” during the movie “Training Day,” adding a smiley face. Interpreting the meaning is a lot like trying to divine Washington’s character’s initial intent for his partner, played by Ethan Hawke. The question ultimately remains unknown.

The Ravens’ situation is not dissimilar: the clock is ticking. But unlike in the film, the answer will arrive any day now.

Have a news tip? Contact Brian Wacker at bwacker@baltsun.com, 410-332-6200 and x.com/brianwacker1.

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