The Baltimore Ravens have restructured Lamar Jackson's contract to create nearly $40 million in salary cap space, a source told ESPN. The move converts most of Jackson's $51.25 million salary into a bonus, spreading the cap hit over four years while reducing his 2026 cap figure from $74.5 million to $34.54 million.

Baltimore needed the cap room to fit Trey Hendrickson's four-year, $112 million contract under the salary cap before Wednesday's league year deadline. The Ravens reached agreement with the four-time Pro Bowl pass rusher less than 24 hours after backing out of a trade for Maxx Crosby. By triggering an automatic restructure clause, Baltimore freed up $39.96 million in cap space.

The restructuring increases Jackson's 2027 cap number from $74.5 million to $84.49 million, which would rank third-highest in the NFL. The two-time MVP, who has two years left on his current deal, can become an unrestricted free agent after the 2027 season. Baltimore still hopes to work out a long-term extension with the 29-year-old quarterback before he hits the open market.