Ravens restructure Lamar Jackson deal to create $40M cap space

The Baltimore Ravens have restructured quarterback Lamar Jackson’s contract, creating nearly $40 million in salary cap space ahead of the start of the new NFL league year, according to ESPN’s Adam Schefter. The move provides the financial flexibility Baltimore needed to finalize the four year, $112 million deal for newly acquired pass rusher Trey Hendrickson.

Jackson, a two time NFL MVP, still has two seasons remaining on his current contract. However, the Ravens continue to work toward a long term extension that would keep their franchise quarterback in Baltimore beyond the 2027 season. Without a new deal, Jackson could become an unrestricted free agent following that year.

By activating a clause that automatically restructures his contract, the Ravens were able to reduce Jackson’s 2026 salary cap hit from $74.5 million, which ranked among the highest in the league, to $34.54 million. The move freed up $39.96 million in cap space. While the restructuring helps Baltimore in the short term, it also increases Jackson’s projected cap number for 2027 to $84.49 million.

The adjustment converts much of Jackson’s $51.25 million salary into a signing bonus that will be spread out over multiple seasons, including two void years. Team owner Steve Bisciotti previously emphasized the organization’s urgency in securing a contract extension that would lower Jackson’s cap figure while ensuring long term stability at the quarterback position.

Jackson enters the 2026 season looking to rebound after a challenging 2025 campaign. Injuries limited him to 13 games and contributed to his first losing record as a starter. Despite the setback, Jackson remains one of the most dynamic quarterbacks in NFL history, known for his dual threat ability and postseason success. He will now begin a new chapter under head coach Jesse Minter and offensive coordinator Declan Doyle.