Baltimore Ravens head coach John Harbaugh gave an interesting revelation Monday at his AFC coaching breakfast during the NFL annual league meeting. He said the Ravens had internal discussions about quarterback Lamar Jackson’s contract extension.
“There was an internal conversation about it,” Harbaugh said. “Along with that, I don’t know. I definitely think that’s a clear point…it’s really going to have to deal with it with everyone.
Jackson, who represents himself and has no agent, is entering his third year of his five-year, $260 million contract he signed in 2023 after being designated as a franchise player. He is expected to make $43.5 million in 2025 with a salary cap of $43.5 million.
A $52 million annual deal, including a then-recorded $72.5 million signature bonus, made Jackson the NFL’s best paid player. Of the $260 million, there was a $185 million guarantee, fully guaranteed at the time of signing.
Jackson has a no-trade clause. There are also regulations that prevent the Ravens from designating Jackson as a franchise or transition player when the contract expires after the 2027 season.
Jackson should not be in a hurry to get the deal done. Jackson fell to the NFL’s ninth-highest pay player in average annual salary, but this is a separate story from actual cash. Only Dallas Cowboys quarterback Duck Prescott, the NFL’s highest-paid player, has made more than $155.25 million for Jackson since he signed the 2023 season after the 2025 season. Prescott has made $165 million over the last three years. Kansas City Chiefs quarterback Patrick Mahomes is third at $152.6 million. It was supposed to be $156 million for Jackson, but in 2024 he didn’t win a $750,000 training bonus.
Jackson already has a huge amount of contract leverage thanks to his performance. His leverage will be even greater in 2026, with his $74.5 million cap number being the third highest in the NFL.
Jackson has taken the game to another level since signing the contract. He was named NFL MVP in 2023, which was his second award.
Surprisingly, Jackson did not repeat as MVP. He had a historic 2024 season. Jackson was the first to throw for at least 4,000 yards and run for at least 900 yards. His 4,172-yard pass (6th in the NFL) was a career-high, with 41 touchdown passes (tie for 2 seconds), 8.8 yards per pass (first time) and a passerby rating of 119.6 (first time). The 915-yard rushing was his most since the 2020 season. Jackson’s 119.6 passing rating was the fourth-best mark of all time of the season. He also led the NFL with 6.6 yards per carry.
Players in NFL history didn’t lead both yards on a run-by-run at the same time until Jackson. Jackson only had four intercepts, but had a touchdown and interception ratio of over 10-1. Those with over 40 touchdown passes had fewer intercepts in the same season.
One thing Jackson doesn’t need to worry about is his place in the NFL pay hierarchy. “The value is top,” Harbaugh said. “If Lamar gets paid, he will be the highest paying player in football, like last time.
Aaron Donald approach
Jackson will have to wait until 2026, when the NFL salary cap can approach $300 million. Otherwise, Jackson could recommend that the Ravens exercise their contractual rights to convert their pay into signature bonuses to create 2025 cap space, rather than reserving space through new deals.
Jackson needs to propose an Aaron Donald approach. That way, if the Ravens begin debating this offseason and contract, they can try and eat cake.
The Los Angeles Rams did something for Donald in 2022, but that rarely happens in the NFL. The three-time NFL defensive player of the year worth $55 million was essentially stripped away and replaced by a three-year, $95 million deal, with the NFL’s highest wage non-quarterback reaching the highest non-quarterly of $31,666,667 per year, rather than giving contract extensions that include the New Year.
Donald has earned a $40 million increase in three existing contract years with his New Deal. His 2022 compensation went from $14.25 million to $46.25 million for renegotiation. Donald made $60 million over 2022 and 2023, rather than the initially planned $3,325 million.
Going this route, Jackson will need to add $42.5 million to the remaining three contract years worth $147.5 million. The total $190 million marks Jackson as the league’s highest-paid player, bringing it to $63,333,333 per year. That $190 million is added to the $112.5 million negotiated in the first two years of the current contract in 2023 and 2024, bringing it to $303.5 million over the five years from 2023 to 2027. That’s $60.5 million a year.
The Ravens will need to add more than $16.5 million to Jackson’s 2025 compensation this year to help him become a cash leader. Los Angeles Chargers quarterback Justin Herbert is the 2025 Top Horner for $60 million.
Josh Allen renegotiation/AJ Brown Extension Model
Raven should alk with a Donald approach. Jackson’s alternative would require three years to be added, so he has a total of six years on a contract. Like NFL MVP Josh Allen’s recent deal with the Buffalo bill in 2024, it doesn’t really matter whether the Philadelphia Eagles are categorized as renegotiations like a three-year, three-year contract extension, as they did with wide receiver AJ Brown last April. There are sweet spots where both parties can place their trades in an advantageous position.
The Bills renegotiated Allen’s contract, but on a four-year extension of six years with a remaining $154,554,595, averaged $43 million (equivalent to $288 million through incentives). He signed in 2021. The maximum value of the deal is worth $333 million due to the $500,000 annual incentive to win the Super Bowl. The deal is guaranteed to be $250 million for NFL-Record. The $147 million fully guaranteed at the time of signing is the second most common NFL contract.
Rather than maximizing average annual salary, Allen clearly focused on cash flow. For $55 million a year, Allen is tied up as the NFL’s second-highest pay player, along with Joe Barrow (Cincinnati Bengals), Trevor Lawrence (Jacksonville Jaguars) and Jordan Love (Green Bay Packers). Allen’s $220 million from 2025 to 2028 is the highest ever-growing cash flow for four years on an NFL contract. A four-year extension of Prescott signed last September, surpassing the previous high of $229 million (2024-2027) with a $240 million extension that made him the first $60 million player in the NFL.
Brown signed for $96 million over three years, and he became the NFL’s highest-paid wide receiver at $32 million a year, before the Minnesota Vikings gave Justin Jefferson an extension of $35 million a year last June. Brown sets a wide receiver record with a $84 million guarantee. Jefferson shattered. The $51 million fully guaranteed at the time of signing was the second-highest ever for a wide range of receivers.
The Eagles were aggressive in eliminating potential issues with Brown’s New Deal. Perhaps what didn’t work very well with Brown would have been that if he signed a three-year $75 million extension a few weeks ago and left his deal intact, he averaged the same $25 million extension as the 2022 extension, signing a $75 million extension. Brown’s 106 reception in 2023 was six fewer than Smith’s 2023 target.
Jackson’s sweet spot will be a new $342.5 million deal over six years. The Ravens were able to characterize a renegotiation agreement average of $57,083,333 in a year that lags behind Prescott’s $60 million annual extension or new money average alone. Jackson earns $147.5 million over the remaining three years running until 2027, so the new money of $195 million over the three new contract years (2028-2030) is a three-year extension, an average of $65 million per year.
Since signing in 2023, Jackson’s $52 million annual contract, adjusted to a 24.2% increase in salary cap, has exceeded $64.5 million per year. Prescott’s $60 million annual increase from his annual $55 million quarterly standard before his transaction by 9.09%. The increase, which applies to Prescott’s $60 million, is just under $65.5 million a year.
Jackson’s accumulated cash could be $60.5 million (2025), $120 million (2026), $175 million (2027), $230 million (2028), $285 million (2029), and $342.5 million (2030) annually. He will be $2.5 million, $7 million, $9 million, $10 million, $12.5 million and $12.5 million for each of his six years. These numbers will bring Jackson to 42.31% of his new money after his first new contract year (2028) and 70.51% of his second New Year (2029).
The total guarantee is $230 million, and is cash for the first four years. To make it simple, for $175 million, the first three years are fully guaranteed at signing.
Notredead clauses and prohibitions on franchise or transition tags, even if they were signed in 2025 or 2026, are included in the New Deal. This is what happened in Prescott. These items in his 2021 deal were also part of his 2024 contract extension.
Unique pay escalator
Harbaugh opened the door to Jackson, the NFL’s highest-paid player, so he should argue for clauses that guarantee that it will happen in the new contract year (2028-2030). I previously asked NFL sources if the pay escalator is making players the best payment in their positions and if they would allow his side of the ball (attack or defense). This type of escalator is permitted. Players with sufficient leverage to obtain such unprecedented provisions are a bigger problem.
One way the clause works is if Jackson is named the NFL MVP, or if the Ravens win the Super Bowl by meeting a certain regular-season or playoff offensive playtime threshold, the fully guaranteed fifth day of the league year roster bonus will be added with a proper new contract equal to the amount that will become Jackson as the top player in the NFL.
For example, if the Ravens win the Super Bowl in the 2025, 2026, or 2027 season and the NFL’s highest-paid player is $67.5 million a year at the end of the 2027 regular season, the March 2028 roster bonus will be added to Jackson’s contract. Jackson’s third year new money averages $67.5 million per year, up from $195 million to $202.5 million. With the highest-paying player of $70 million a year at the end of the 2028 regular season, the March 2029 roster bonus will be added, bringing new money to a total of $210 million for $70 million a year. Obviously, if $67.5 million per year is the league’s salary benchmark in 2028, there will be no additional escalations.
Final thoughts
The Ravens would be wise to consider Jackson’s very early contract extension. History shows that the longer a team waits to deal with an All-Pro Caliber player contract, the more expensive it will be. Jackson definitely fits that bill.
What Jackson is willing to embrace this year will likely become obsolete in 2026, especially if he continues to play at the MVP level. The Ravens should expect Jackson to drive a difficult bargain next offseason.
