Lamar Jacksonand theBaltimore Ravens avoided an immediate cap crunch this offseason, but they did not solve the bigger issue.
After months of speculation about a new deal, the Ravens instead restructured Jackson’s contract on March 11, 2026. The move created much-needed salary-cap space, however, it also pushed a massive financial burden into the future. Now, with no extension in place and Jackson holding significant leverage, the franchise could be heading toward another complicated round of negotiations.
Ravens Buy Time But Lamar Jackson Still Holds The Cards
Jan 4, 2026; Pittsburgh, Pennsylvania, USA; Baltimore Ravens quarterback Lamar Jackson (8) rushes the ball against the Pittsburgh Steelers during the first half at Acrisure Stadium. Mandatory Credit: Charles LeClaire-Imagn Images
According to ESPN’s Jamison Hensley and comments from the Ravens general manager Eric DeCosta in March 2026, the Ravens reworked Jackson’s contract after the sides failed to finalize an extension before free agency.
Baltimore and Lamar Jackson were very close on a contract last summer. Very interesting it didn't happen and it's been quiet since.
Dolphins and Cowboys are two teams Jackson has expressed interest in playing for in the past.
Ultimately, Baltimore and Lamar will likely get… https://t.co/N75D1B6cY6
— Neal Driscoll (@NealDriscoll) June 14, 2026
The restructure dropped Jackson’s 2026 cap hit from roughly $74.5M to about $34.5M, freeing nearly $40M in space. That flexibility helped Baltimore stay active this offseason, however, it came with a cost. Jackson’s 2027 cap figure now sits at approximately $84.5M, which would be the largest scheduled cap hit in the NFL.
DeCosta maintained that an extension remains a priority for both sides.
“We’re certainly hopeful that we’ll get an extension done. I think it’s important to both parties. But we remain to see what’s going to take place in the future.” (ViaESPN)
That future becomes tricky because Jackson has uncommon leverage.Jackson is a two-time MVP who negotiates alone, meaning that all discussions happen according to Jackson’s schedule. Moreover, his deal comprises both a no-trade clause and a no-tag clause, thus restricting the Ravens’ ability to maneuver in case of failure to make progress in the negotiations.
Ideally, the Ravens should work towards extending Jackson’s contract way ahead of him becoming a free agent because, in the past, team owner Steve Bisciotti has always emphasized the need to achieve another championship era instead of restructuring contracts in future years.
However, the QB market continues to inflate. Today, Dak Prescott takes the lead with $60 million annual value, whereas Josh Allen owns the record in terms of guaranteed amount. In case Jackson performs exceptionally well next year, he might be in an even better position in 2027.
There is also a football element to this story. The Ravens enters a new era under head coach Jesse Minter and offensive coordinator Declan Doyle. Jackson has already joined offseason work and begun learning the revamped offense.
For now, both sides appear motivated to find common ground. However, the restructure only delayed the conversation, the Ravens gained cap flexibility today, while creating a much bigger decision for tomorrow. If an extension does not arrive soon, the Ravens could find themselves facing one of the NFL’s most expensive and complicated contract situations.