Ravens Have $38 Million Last-Gasp Option for Lamar Jackson Contract

Baltimore has different approaches it can take to address its star quarterback's looming cap hit.

Published on Mar. 2, 2026

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The Baltimore Ravens have a $74 million cap hit for quarterback Lamar Jackson in 2026 if they don't address his contract this offseason. According to ESPN's Dan Graziano, the Ravens have an option to convert salary to signing bonuses and add more void years to Jackson's deal, which could provide them with up to $38 million in savings without needing Jackson's approval. However, the Ravens would prefer to sign Jackson to a contract extension to avoid pushing more cap charges into future years.

Why it matters

Lamar Jackson's contract situation has been a pressing issue for the Ravens, who are committed to keeping their star quarterback long-term. The team's ability to maneuver Jackson's contract could have significant implications for their salary cap flexibility and roster-building efforts in the coming years.

The details

Jackson's current contract has him carrying a $74 million cap hit in 2026, which the Ravens cannot afford. The team has the ability to convert salary to signing bonuses and add more void years to Jackson's deal, which could provide them with up to $38 million in savings for the 2026 season. However, the Ravens would prefer to sign Jackson to a contract extension to avoid pushing more cap charges into future years for which he is not yet signed.

  • Jackson's current contract has him carrying a $74 million cap hit in 2026.

The players

Lamar Jackson

The Baltimore Ravens' star quarterback who is currently playing on his rookie contract.

John Harbaugh

The former head coach of the Baltimore Ravens, who was recently let go by the team.

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What they’re saying

“The Ravens have automatic conversion rights in the contract, meaning they can add more void years, convert salary to signing bonuses and knock down this year's cap number by as much as $38 million -- and they don't need Jackson's permission to do it.”

— Dan Graziano, ESPN Reporter (ESPN)

“Jackson still doesn't use an agent, and that has led to some complications in these kinds of talks between him and the team in the past, so it's hard to handicap the Ravens' chances of getting it done.”

— Dan Graziano, ESPN Reporter (ESPN)

What’s next

The Ravens will need to decide whether to pursue a contract extension with Lamar Jackson or utilize the $38 million in potential savings by converting salary to signing bonuses and adding void years to his deal.

The takeaway

The Ravens' ability to manage Lamar Jackson's contract will be crucial in determining their salary cap flexibility and roster-building efforts in the coming years. While they have a potential $38 million 'last-gasp' option, the team's preference is to sign Jackson to a long-term extension to ensure stability at the quarterback position.