Josh Allen Deal Sets New Bar for Lamar Jackson, Ravens

On April 27, 2023, the Baltimore Ravens signed superstar quarterback Lamar Jackson to what was then the largest contract in NFL history, one that would pay him $260 million over five years with $185 million guaranteed.

Less than two years later, that contract looks small in comparison.

On Sunday, the Buffalo Bills signed star quarterback Josh Allen to a six-year deal worth $330 million with $250 million guaranteed, the most in NFL history. The reigning league MVP now has the second-highest average annual value (tied with several other quarterbacks) behind Dallas Cowboys star Dak Prescott, whose contract has an AAV of $60 million.

It's a well-deserved reward for one of the NFL's best quarterbacks, and it will have significant implications for the rest of the league as well.

Baltimore Ravens quarterback Lamar Jackson celebrates against the Buffalo Bills — Baltimore Ravens quarterback Lamar Jackson reacts to not getting the two-point conversion attempt during second half action at the Buffalo Bills divisional game against the Baltimore Ravens at Highmark Stadium in Orchard Park on Jan. 19, 2025. | Tina MacIntyre-Yee/Democrat and Chronicle / USA TODAY NETWORK via Imagn Images

For Baltimore, Jackson now ranks ninth among quarterbacks with an AAV of $52 million. That's obviously a steal for arguably the best quarterback in the league, but how long will the Ravens have that luxury?

The Ravens have Jackson signed through the 2027 season, so they don't technically need to sign him to a new deal for another three years. However, Allen was signed through the 2028 season and still signed a new deal, so they can't just wait until the last minute to get a deal done.

Allen wasn't the first to sign a new deal years before his current one expires. In fact, general manager Eric DeCosta even acknowledged that trend when asked about Jackson's contract in his end-of-season press conference.

"Yes, we've seen teams do that," DeCosta told reporters on Jan. 22. "And Lamar [Jackson] and I, we've had a lot of discussions about contracts over the years, and at some point, I'll probably talk to Lamar. I'm just really happy [and] blessed to have watched him play football this year. We just finished the season; I want Lamar relax a little bit and think back to what we accomplished as a team and what he accomplished individually. We'll have those conversations probably at some point."

According to OverTheCap, Jackson's cap hit is a reasonable $43.65 million for 2025, but balloons to $74.65 million in 2026 and 2027. An extension could drive those cap hits down, and give the Ravens plenty of room to build around him while he's still in his prime.

At the bare minimum, expect Jackson's next deal to clear Allen's $55 million AAV, and possibly be in the neighborhood of Prescott's $60 million AAV.

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