The Baltimore Ravens face a critical deadline with quarterback Lamar Jackson as free agency approaches. Jackson's $74.5 million salary cap hit for 2026 ranks second-highest in the NFL, creating urgency for Baltimore to either extend his contract or restructure it to free up cap space. The Ravens want to reduce this massive cap figure to pursue free agents and improve their roster after an 8-9 season.

Baltimore's ideal scenario involves striking a new deal with Jackson, who represents himself without an agent. An extension would not only create immediate cap room but also push his contract beyond 2028 when he's set to become an unrestricted free agent. Ravens owner Steve Bisciotti has made clear the team's preference for a long-term agreement rather than temporary cap manipulation.

If Jackson doesn't sign an extension, Baltimore can restructure his contract to create over $30 million in cap room, though this approach pushes significant cap hits into future seasons. The Ravens project having only $9-12 million in cap space heading into free agency. Without a new deal, Jackson would enter 2027 with substantial leverage in a quarterback market that could see extensions for Caleb Williams, Jayden Daniels, Drake Maye, and Bo Nix. The situation creates a complex dynamic as Jackson approaches his 31st birthday in 2028.