What possibilities does a Lamar Jackson contract extension open up for the Baltimore Ravens?

Lamar Jackson has been with the Baltimore Ravens since he was drafted at pick number 32 in 2018. 

In his eight season tenure he's passed for over 22,000 yards, rushed for over 6,500 yards and scored 222 touchdowns. He's won the MVP twice, with his first in 2019 being the second ever time a player had won it unanimously. 

Now, with his contract entering the final two years, the cap hit on the Ravens will be $74.5 million in 2026 and 2027, which would be 24% of their projected cap space.

However, the Ravens are planning to enter negotiation talks with the three-time First-Team All-Pro quarterback in the hopes of not only extending his contract but freeing up cap space for the next two seasons.

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In August of last year Ravens' General Manager Eric DeCosta said contract negotiations were ongoing and if an extension is not reached before his cap jump it would make it much harder for the Ravens to build around him in the coming years. 

DeCosta said: "A deal with Lamar would give us the ability to be more active to re-sign, probably more players on the team, and potentially go after a couple big-ticket items." 

It's clear that the Ravens front office want this extension signed as soon as possible to one relieve them any stress of Jackson's future, but arguably more importantly it gives them much increased flexibility this coming free agency and in 2027 as well.

So if Lamar Jackson does sign a contract extension before free agency opens on March 11, meaning he was on less money for the next two years, what doors does that open?

For example if it was similar to Josh Allen's contract with the Bills last year, Jackson would be on around $55,000,000 for at least the next two years. This would free up around $19,500,000 in additional cap space for the next two years.

All of a sudden they have a lot more than $29,509,560 of cap space going into free agency.

What does the possibility of the Ravens having almost $50,000,000 in cap space mean for their 2026 off-season?

Ravens' ability to re-sign all their key players

If the Ravens got the Jackson deal done and had around $50,000,000 in cap space it would mean they could re-sign as many of their key assets as they wanted. But who should be top of their list?

Tyler Linderbaum - Centre

The Ravens' first round pick in 2022, has been the core of their offensive line since he was drafted and most importantly has only missed two games in his entire NFL career so far. Finding a player of his quality at centre is hard to come by and one that can stay healthy is even harder. 

Now with the Los Angeles Chargers looking to make upgrades to protect Justin Herbert, and the New York Giants wanting an upgrade at this position, especially as John Harbaugh with now becoming their Head Coach, the Ravens must do everything they can do lock him down for the future. 

Dre'Mont Jones - Defensive Line

The 29-year-old defensive lineman joined midway through the season from the Tennessee Titans in exchange for a conditional fifth round pick. Despite having a slightly worse end to the season he still finished with seven sacks and 43 total tackles. 

He's exactly the mix of experience and talent, with years still left in him that the Ravens need if they are set on extending Jackson and giving him and the franchise an extended Superbowl window. 

Ar'Darius Washington and Alohi Gilman - Safety

These two are put together as Gilman was brought to the Ravens after five games due to the Ravens' lack of depth at safety as Washington was out for the first 14 weeks of the season. 

Washington's five year career in the NFL has been plagued with injuries however, in 2024 when he remained fit he put up 64 tackles, two interceptions, a forced fumble and a sack proving that when he can stay healthy the 26-year-old can be a game-changer for the Ravens defense. So it's too early to give up on him in my opinion. 

Gilman in his 12 games for the Ravens this season recorded 68 tackles taking his season total to 90, a career best, along with a forced fumble and two fumble recoveries.

Despite being two years older than Washington he's more than proved his worth to the Ravens and they would be a much stronger defensive unit with both still on team going into next season.

They can look into the free agent market to improve their squad

Now re-signing players isn't all the Ravens will be looking to do, they will want to spend some of this extra money they've hopefully got. Here are some suggestions on free agent pick-ups that could help them get back to the post-season, make a deep playoff run and maybe help Jackson get his first ring.

Jauan Jennings, Wide Receiver - San Francisco 49ers

DeCosta said extending Jackson's contract would allow them to "go after a couple big-ticket items." This is definitely that, they need a strong wide receiver to pair next to Zay Flowers and following a season with 643 yards and nine touchdowns Jennings would be more than capable of that. 

It could be argued this would give them two wide receiver one options and looking at the receiving stats from this season for the Ravens they drop from Flowers with over 1,200 to tight end Mark Andrews on 422, help is definitely needed on that side of the ball. 

It would not be cheap to sign Jennings. But in terms of players that can push the Ravens back into Superbowl contenders there's few better in a desperately needed position. 

This would put the whole league on high alert of just how serious the Ravens are heading into the 2026 season.

Joey Bosa, Defensive Line - Buffalo Bills

The Ravens need everything at edge rusher from experience, to leadership, to talent. A healthy Joey Bosa can offer all of that in buckets. Recording five sacks and five forced fumbles for one of the strongest pass defenses in the league this season it's another signing that would be a statement. 

He would cost approximately $13,500,000 a year and on a two-year contract the 30-year-old definitely has at least two years of high-level play left in him. 

Rashid Shaheed, Wide Receiver - Seattle Seahawks

It can't be understated how badly Jackson needs another high-level target to throw to. In comparison to Jennings he only has two touchdowns but more receiving yards with 687. He's also a year younger and would be a cheaper option. 

The wideout, who went undrafted in 2022, is having statistically his second-best ever season with the first-seed Seahawks.

On top of being a great second option to Jaxon Smith-Njigba has also proven to be an elite punt returner, running 58 yards in for the touchdown against division rivals the Los Angeles Rams in one of the games of the season. 

In conclusion, an extension to Lamar Jackson's contract is beneficial to everybody involved.

For Jackson, he can stay in Baltimore and continue his dream of bringing the city a Superbowl.

For the franchise, they can further aid him in that pursuit with using the additional cap space to re-sign and bring in elite level players across the field.