Lamar Jackson has already redefined what it means to be a franchise QB. Two-time MVP, a dual-threat phenom, and key face of Baltimore’s identity, he is a force. But now, with a record-breaking cap hit looming and younger QBs eclipsing his salary, Jackson’s $260M deal feels outdated. As training camp kicks off, the Ravens face a high-stakes dilemma. Whether to extend their superstar or risk fracturing their Super Bowl window.

The Ravens say there’s “no urgency.” While GM Eric DeCosta remains calm, it has put head coach John Harbaugh on notice.  With each passing day, it is building pressure on John Harbaugh. The front office hopes to finalize this second extension before the 2025 regular season begins. And, this was evident from the NFL’s The Insiders‘ July 15 episode, where Ian Rapoport dropped his two cents on the topic.

As per Rapoport, Ravens GM Eric DeCosta wants to extend Lamar proactively. It is a logical time for a restructuring or extension, but the real question is how much. “Does he eclipse the $60 million of Dak Prescott?” or “Maybe in the 55 range like Josh Allen… though Allen’s deal was more of a ripped-up deal, a brand new one,” he noted.

Jackson signed the previous long-awaited extension in April 2023, following a months-long standoff. The deal was historic at the time. He received $185 million guaranteed, $72.5 million in signing bonus, and a then-record $52 million AAV. But in just two years, quarterback salaries have exploded significantly. It has left Jackson ranked 10th in average annual value, behind names like Dak Prescott, Josh Allen, and Jordan Love.

The bigger problem is that Lamar Jackson’s cap hit will jump to $74.5 million in both 2026 and 2027. Many experts suggest that it is way too high for the team to manage, calling it an “untenable number for building a Super Bowl-caliber roster,” as mentioned in The Athletic’s article. The Ravens have just one more season of breathing room before that cap bomb detonates. In 2025, Jackson’s hit is a relatively manageable $43.5M, but in 2026, Baltimore risks being limited. “An extension would make him happy and open up a ton of salary cap space,” Aaron Schatz from ESPN remarked.

With a new deal, it would restructure the contract, spread bonuses and guarantees across future years. So, it is a race against time for the team. “We’re in the introductory stage of looking at what an extension might look like,” Eric DeCosta, Ravens GM, said in June 2025. However, the Ravens downplayed the urgency, remarking, “Just because they don’t get it done before camp doesn’t mean the Ravens won’t keep working on it.” Inadvertently, it has led John Harbaugh to notice.

Pressure builds on John Harbaugh

Though Jackson is under contract through 2027, John Harbaugh knows that they can’t afford to wait much longer. “There’s been conversations about that internally, I know… When the market’s paid, he’s going to be the highest-paid player in football—just like last time,” he said earlier. Harbaugh, now entering his 18th season in Baltimore, has never started a year in the final season of his contract.

The Ravens are known for negotiating major extensions during the season, but the stakes are different now. “They want to get an extension done proactively. Lamar Jackson wants to get an extension done regularly,” Ian Rapoport said.

Some sources suggest Jackson’s next deal could resemble Josh Allen’s deal. It could be a pre-expiration extension, with cap relief, escalating to huge bonuses later. Potential terms could include 5–6 years, $300M–$325M total, $60M–$65M/year AAV, $230M+ guaranteed, and void years to spread cap charges.

While Lamar Jackson is the top priority, the Ravens must balance cap space to retain key talent. Derrick Henry and Rashod Bateman got extensions, but Mark Andrews is aging in a contract year. Rising star Isaiah Likely and pending extensions for Linderbaum, Odafe Oweh, and Kyle Hamilton add urgency to manage finances wisely.

Despite fielding the NFL’s No. 1 defense in 2023 and the top-ranked offense in 2024, the Ravens have come up short. Their 27-25 playoff loss to the Bills, missing Zay Flowers and marked by Mark Andrews’s costly drop, exposed how slim their margin for error is. Still, Lamar Jackson remains confident, as he declared at the June 2025 minicamp, “We’re going to bounce back… we’re going to have vengeance on our mind.”

If Baltimore wants to compete well, it must secure the future of their most valuable asset. The question isn’t if Lamar Jackson will get paid, it is how much, and how soon, to keep things in balance.