The Baltimore Ravens are running out of time to make a critical decision ahead of free agency. They must agree on a new contract with quarterback Lamar Jackson in the coming weeks. His $74.5 million cap hit in 2026 is way too high to work through other negotiations comfortably.
The Ravens know this; they highlighted earlier in the offseason that they’re hoping to work out a similar contract to that of his last extension. Still, the pressure is on, and it’s only mounting. They’re pretty much out of excuses to not have a new contract worked out at this point.
This week, the Kansas City Chiefs restructured quarterback Patrick Mahomes’ contract. Mahomes’ cap hit was set to be an astronomical $78.2 million in 2026, but it shrinks down to $34.65 million with the move. The Chiefs also added a much-needed $43.56 million in cap space.
Obviously, a contract extension is a bit different. Mahomes is under contract through 2031, giving the Chiefs more years to spread that money out. Jackson’s contract, on the other hand, is up after the 2027 campaign. Still, Kansas City’s decision adds a greater sense of urgency to the Jackson situation in Baltimore.
Ravens must work out a new contract with Lamar Jackson soon
It’s easier said than done with Jackson. When the dust settles on the contract negotiations, Jackson will almost certainly be the highest-paid player in the NFL. Spotrac projects his next deal to be worth around $250 million over four years, including an average annual salary of about $62.6 million.
Currently, Jackson has two years left on the five-year, $260 million contract he signed ahead of the 2023 campaign. At the time, that $52 million salary was a new league record, but since then, nine quarterbacks have passed that mark, with Dallas Cowboys quarterback Dak Prescott earning the highest average salary with $60 million. It’ll take a lot out of Baltimore’s pocket to surpass that, but Jackson undoubtedly deserves it.
Entering the 2026 season, there are just two current players who have won multiple MVPs: Mahomes and Jackson. It could even be three for Jackson, if it weren’t for a questionable call to name Buffalo Bills quarterback Josh Allen the MVP in 2024. Regardless, Jackson has been on a tear pretty much since he earned the starting job late in his rookie year in 2018, and of course, he has been setting unthinkable records since that moment.
The Ravens’ offense is always a threat with Jackson. He’s proven throughout his illustrious career that no matter who his weapons are and who’s blocking for him, he is going to embarrass the opposing defense. Baltimore fans are spoiled to have him under center.
The injury bug will definitely be the biggest question as the front office conducts contract talks. A variety of injuries hampered Jackson for most of his 2025 season, but in those moments where he was 100 percent healthy, he was possibly the most dangerous player in all of football.
Through the first four weeks, Jackson threw for 869 passing yards and 10 touchdowns to just one interception. He added another 166 yards and one touchdown on the ground. He still showcased himself as a lethal dual threat before that agonizing stretch of injuries, which started with a Week 4 hamstring injury against the Chiefs.
To satisfy Jackson, not only will the largest contract in NFL history have to be thrown on the table, but a new and improved offensive line should be a priority. The horrific play at offensive guard played an unfortunate role in Jackson getting banged up over the course of last season. A stable addition or two at that spot this offseason should not only help keep Jackson healthy, but also let him fully blossom into the player everyone knows he is.
Ultimately, Jackson’s next contract needs to be finalized soon. That substantial cap hit looms like a thunderous cloud over everything Baltimore will be looking to do this offseason. Hopefully, the Mahomes move forces general manager Eric DeCosta and the Ravens’ front office to hit the accelerator on those negotiations with Jackson.