The Baltimore Ravens have reportedly restructured Lamar Jackson's contract to create millions in cap space.
The Baltimore Ravens have reportedly restructured Lamar Jackson's contract.
The two sides have lowered his contract to create nearly $40 million in salary cap space.
ESPN's Adam Schefter shared the news via X.
"Ravens have reworked the contract of Lamar Jackson, as @AKinkhabwala also reported. Sources say the restructure with Jackson creates about $40 million in salary cap space for the 2026 season. It’s similar to what Patrick Mahomes and Josh Allen have done this offseason for their teams."
While the Ravens reworked Jackson's contract, they are still working on a contract extension. The two-time MVP has two years left on his current deal. If the Ravens fail to get an extension done with Jackson, he will become an unrestricted free agent after the 2027 season.
The former Louisville Cardinal was due to enter 2026 with a cap number of $74.5 million. However, by reworking his contract, that dollar sign drops significantly from $74.5 million to $34.54 million.
Ravens owner Steve Bisciotti has always been adamant in getting a deal done, as he expressed shortly after the end of the 2025 season.
"We want another window, and Lamar knows that," Bisciotti said. "I think he is amenable to doing something that mirrors the last deal that he did, although the annual number will be a little higher. But I'm hoping that it's plug in your number in the same contract he signed [in 2023] and move on.
"The urgency of that matters to me because we've got free agents, and I don't want to go into free agency with that hanging over our head. I made that clear to Lamar, and I think he was very appreciative of my stance, and hopefully, willing to work with Eric and not get this thing dragged out into April like it was the last time."
Jackson was also vocal in getting a deal done and remaining in Baltimore for the foreseeable future when asked in December.
"Absolutely, man. Absolutely. Absolutely. Absolutely. I don't even know where that comes from," Jackson said. "We have to focus on winning right now. So, contract talk can be after the season or whatever, but during the season, I'm locked in."
The 29-year-old is arguably the best player in the league. Jackson has shown he can do it all, but the one thing missing from his resume is a Super Bowl title. Following a disappointing 2025 season, Jackson and the Ravens will aim to bounce back in a major way in 2026.