Lamar Jackson's Contract Details: A Complete Breakdown of the NFL Star's Financial Agreement
Lamar Jackson's Contract Details: A Complete Breakdow...
By Jason Bolton August 16, 2024 23:25
Lamar Jackson, the electrifying quarterback of the Baltimore Ravens, has inked a contract that has established new standards within the NFL. This paper analyzes the unique intricacies of Jackson's contract, including the key terms, financial ramifications, and a comparison with other league-leading quarterback contracts.
Duration, Commencement, and End Dates
Lamar Jackson's current contract spans five years, from 2023 to 2027. The contract was signed into law on May 4, 2023, and includes two years rendered void to end in 2028. This gives the Ravens the much-needed salary cap flexibility while expressing utter financial commitment to Jackson.
Total Contract Value and Average Annual Salary
Complementarily, the total value of Jackson's contract is $260 million, marking one of the most generous contracts in the history of the NFL and translating to an average annual salary of $52 million. These terms make Jackson the highest-paid player in the NFL at the time of the contract signing. Previous record holder Jalen Hurts recently penned a five-year deal averaging $51 million annually; therefore, agreeing to Jackson's $52 million average per year offers him a considerable financial advantage.
Signing Bonus Amount and Structure:
Jackson's contract also features a record signing onus totaling $72.5 million. The contract marks the most significant signing bonus ever issued in the NFL, surpassing the previous record of $66 million held by Dak Prescott. The signing bonus is prorated across the contract's life for salary cap purposes and front-loaded, allowing the Ravens to spread the cap hit for this year over many years while still offering a significant share to Jackson upfront.
Guaranteed Money
Jackson's deal includes $185 million in total guarantees, with $135 million fully guaranteed at signing. That ranks as the second-largest cash guarantee in NFL history, behind only Deshaun Watson's $230 million fully guaranteed deal. Here's the structure of Jackson's guarantees in his contract:
- 2023Fully guaranteed base salary of $7.5 million
- 2024: Fully guaranteed base salary of $14.25MM
- 2025: $28.25 million base salary, with a guarantee of $29 million if he is on the roster by the fifth day of the league year
- 2026: Base salary of $51.25 million, again setting similar guarantees percentage-wise
- 2027: $51.25 million base salary (no roster guarantees)
The deal also features option bonuses that could escalate Jackson's guaranteed payouts in future years.
In addition to the signing bonus and guaranteed salaries, Jackson's contract includes workout bonuses in 2024-27, totaling $750K each year. The more significant bonuses are tied to Jackson's participation in 80 percent or more of the workouts. While not tied to performance in the traditional sense, these bonuses offer a means by which Jackson is financially incentivized to at least appear ready and devoted to football for OTAs.
Salary Cap Hits by Year
Jackson's contract carries major salary cap implications, something the Ravens must manage as they set a financial course. View this as the salary cap hits projected for each year of the contract:
- 2023: $22.1 million (9.9% of cap)
- 2024: $32.4 million (12.8% of cap)
- 2025y $43.6 million(16.8% of cap)
- 2026: $74.65 million (26.3% of the cap)
- 2027: $74.65 million;$23,8M(base percentage)
That 2026 cap hit is a big one, much larger than today or in any following offseason, and simultaneously an even bigger number for the Ravens to account for against its overall salary cap budget.
Contract Structure (includes base salary, roster bonuses, etc.)
The structure of Jackson's contract includes $6 million in base salaries this season, prorated bonuses, and roster bonuses. The key components include:
Base Salary: Base salaries have increased each year up until this point, which correlates with Jackson's ascendance to becoming one of the league's best quarterbacks.
Signing Bonus: The $72.5 million signing bonus is prorated throughout the contract and affects available cap space for each season while he remains on his new deal.
Roster Bonuses: This contract also contains workout bonuses and payment schedule incentives to encourage Jackson to work with his team in the offseason.
Among the Best QB Contracts in the League
Jackson distinguishes himself further from his peers in the length of the contract, annual value, and signing bonus of $18M with a cap-friendly structure, which will pay him as much as any QB on a per-game basis.
This deal reshaped quarterback salaries around football by extending contract numbers further into eighth years than ever before now sets wild marks across multiple benchmarks. The $260 million figure tops the current record held by Deshaun Watson ($156m) and Josh Allen ($258m), while that signing bonus is higher than its nearest rival ($113.9m for Patrick Mahomes). While the Ravens deal with their cap issues and Jackson's bottom line, his financial agreement will likely impact upcoming quarterback deals and other negotiations at premier positions across the league. The impact of this deal goes beyond just Jackson; it impacts teams around the league who are willing to come up on successful rosters or do so through financial wear and tear.
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