Lamar Jackson Extension Talks: What’s Next for the Ravens’ Star QB?

By Jason Bolton June 29, 2025 14:11

Lamar Jackson, the dynamic quarterback of the Baltimore Ravens, remains a central figure in the franchise’s future as contract extension talks enter a critical phase. Currently in the third year of his five-year, $260 million deal signed in 2023, Jackson’s contract features a hefty cap hit of $43.5 million in 2025, which balloons to $74.5 million in 2026. With three years remaining on this deal, both Jackson and the Ravens are navigating the complex landscape of contract negotiations, balancing financial flexibility with securing one of the NFL’s most electrifying talents.

Current Contract Landscape

Jackson’s 2023 extension made him the highest-paid player in the NFL at the time, with $185 million guaranteed and an average annual value of $52 million. However, as newer contracts have reset the market, Jackson now ranks 10th among quarterbacks in average annual salary. His deal includes significant guaranteed money upfront, including a $72.5 million signing bonus, but the escalating cap hits in the later years pose challenges for the Ravens’ salary cap management.

General Manager Eric DeCosta recently described the extension talks as being in an “introductory stage,” highlighting that while conversations have occurred before and after the draft, a formal agreement remains elusive. “We’ve had some conversations, before the draft, after the draft, in person last week,” DeCosta said. “I think we’re in the introductory stage of looking at what an extension might look like.”

Why an Extension Makes Sense

From the Ravens’ perspective, extending Jackson could provide critical salary cap relief. The looming $74.5 million cap hit in 2026 is unsustainable and could hamper the team’s ability to retain other key players or add talent around Jackson. By restructuring or extending the deal, the Ravens can push cap charges further into the future, creating flexibility to keep their Super Bowl window open.

ESPN analyst Aaron Schatz emphasized the urgency, noting, “An extension would make him happy and open up a ton of salary cap space for the Ravens to use in 2026 and 2027.” Given Jackson’s status as a two-time MVP and the centerpiece of Baltimore’s offense, securing his long-term future is paramount.

Jackson’s Perspective and Leverage

Jackson himself holds significant leverage. With three years left on his current deal and a no-trade clause, he can afford to wait before committing to a new contract. However, a new deal could offer him additional financial security and potentially extend his tenure beyond 2027, when his current contract expires.

The quarterback has not publicly pushed for an extension, and reports suggest both sides are taking a measured approach. Jackson and the Ravens are focused on preparing for the upcoming season, with training camp approaching and players resting their bodies. This cautious pace allows both parties to evaluate performance and market conditions before finalizing terms.

What’s Next?

The timeline for a new contract remains uncertain, but the Ravens have signaled that extending Jackson is a priority. DeCosta indicated that the team aims to “keep as many good players as we can” and views Jackson as “certainly a big part of that.”

With the NFL’s salary cap landscape evolving and Jackson’s value expected to rise as one of the league’s premier quarterbacks, the next 6 to 12 months will be critical. An extension would not only secure Baltimore’s franchise quarterback but also provide the financial flexibility needed to build a championship-caliber roster around him.

Lamar Jackson’s contract extension talks are at a pivotal juncture. While currently under contract through 2027, the escalating cap hits threaten the Ravens’ roster-building ability. Both sides appear committed to reaching a deal that balances Jackson’s elite talent and market value with Baltimore’s need for salary cap flexibility. As the 2025 season approaches, fans and analysts alike will be watching closely to see how the Ravens navigate this high-stakes negotiation, with the franchise’s future very much tied to the outcome.