Lamar Jackson may have two years remaining on his contract, but his future in Baltimore suddenly feels less certain than ever before. The franchise is facing a tough financial reality as the quarterback heads towards the 2026 offseason, one that may take 25% of their cap space. Alternatives? A whopping $250 million extension. 

Michael Ginnitti of Spotrac projected Jackson to command a lucrative four-year, $250 million contract extension this offseason. However, with two years and $104 million remaining on his current five-year deal, talk of an extension raises questions. 

It turns out the two-time NFL MVP’s cap hit is scheduled to balloon to a massive $74.5 million. It’s a figure that ESPN’s Jamison Hensley says is virtually unmanageable for the Ravens’ front office. 

They need to bring in an impact edge rusher, which has become the top priority with Dre’Mont Jones and Kyle Van Noy headed for the market as unrestricted free agents. If Jackson takes such a substantial number, it would become utterly difficult for Baltimore to bring in an impact player. 

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This cap wall makes Jackson’s extension not a reward but rather a financial necessity for the team to make roster adjustments in 2026. 

“The Ravens will be extremely limited with what they can do in free agency if they don’t lower Jackson’s cap figure,” wrote Hensley. “The team likely needs to sign him to a new contract.”

This isn’t the first time Jackson’s extension has been in conversation.

Last offseason, the Ravens were speculated to be negotiating with the signal-caller, but “that never materialized.” Hensley believes part of the reason why the negotiations didn’t pan out is Jackson, who doesn’t have an agent and prefers negotiating by himself. 

This means he’s an excellent person to give an update on the ongoing projections. But only if he talks. The All-Pro quarterback has been reluctant to discuss his future in Purple and Black. 

“I’m not even thinking about that right now, to be honest with you,” he said. “I’m still caught up in what just happened. That’s not my focus right now.”

The 28-year-old is still grieving over the demise of the Ravens’ 2025 campaign. Despite having a three-touchdown performance, he couldn’t make Week 18 count. A close 26-24 loss at the hands of Pittsburgh ended the season in the most painful way possible. This is the first time since 2021 that the Ravens are not headed to the postseason. 

However, Jackson’s contract news is complicated by a growing sense of unrest in Baltimore. 

John Harbaugh’s speculative rift with Lamar Jackson

For the first time in over a decade, head coach John Harbaugh’s seat is reportedly hot. Owner Steve Bisciotti has locked him down in a three-year deal. Since he’s staying, his speculative rift with the signal-caller might create some complications. 

Reports have swirled regarding a potential rift between Harbaugh and the star quarterback Jackson. The Baltimore Sun previously claimed that Jackson has been acting like an “overgrown kid” that Harbaugh no longer wants to entertain. 

Allegedly, the former MVP has caused delays in practice, shifting them from morning to the afternoons. He has also been distracted by video games, which he plays all night and falls asleep during team meetings. 

“We don’t take too much credence in anonymous-type sources,” the head coach responded to the claims. “So, I don’t know where that’s coming from. I’ve never seen that ever. That’s not something that I’ve ever witnessed, and I’m in every meeting.”

Harbaugh has publicly downplayed the tension, though, calling his relationship with the quarterback “A+.” Clearing his stance, he claimed that he’s “transparent” with his players and whenever he has something to say, he’s upfront with them.

There isn’t an option for the Ravens to let go of Jackson; all they need is to address his cap hit, which seems to be the next plan of action.