Jacksonville Jaguars fans woke up to great news on Wednesday morning as the team came to a contract extension with Josh Allen. It closed the door on a situation that started brewing last season when the team had Allen play on the fifth-year option of his rookie contract.

As expected, the extension put Allen in the mega-deal category. He’ll be playing on a new five-year deal worth $141.25 million that includes $88 million in guaranteed money. His new deal is one that averages $30 million, which is only behind Nick Bosa of the San Francisco 49ers ($34M) and Chris Jones of the Kansas City Chiefs ($31.75M) on the defensive side.

Obviously, this is a big deal for Allen, the Jaguars and the Jaguars fanbase. It also has a big impact on the near and distant future for the organization. That said, here are four major takeaways we gathered from Allen’s massive signing: 

This is a historic event for the Jaguars organization

It goes without saying that Wednesday’s contract extension is a huge deal for Allen, but it’s also a very important one for the Jags history. Rarely have the Jags extended their first-round selections in the past, and Allen became one of three they’ve retained since 2010. The other two were quarterback Blake Bortles (2018) and defensive lineman Tyson Alualu (2015).

Allen’s deal also made him the first $100 million player in Jags history. It surpassed the four-year $88 million contract that was given to quarterback Nick Foles back in 2019.

While Trevor Lawrence’s future contract will surpass Allen’s eventually, he’s the perfect player to hold the honor temporarily when looking at his career, which brings me to the next takeaway.

Allen’s actions on and off the field were proof that he deserved a mega-deal

From the day he was drafted, it was clear that Allen wanted to be a key part of building the Jags organization. That was no easy task as the top executive in 2019, Tom Coughlin, made Jacksonville a less desirable destination for players on his way out. Nonetheless, Allen took in all that he learned from former Jags defensive lineman Calais Campbell and eventually became the locker room leader that the former Jags All-Pro was when he left. 

Needless to say, there have been highs and lows within the organization since Allen has been with them. Despite that, he continued to be the example that players needed within the locker room. While the Jags didn’t make the playoffs last season, Allen’s career really took a step forward in 2023 as he set the franchise record with a sack total of 17.5. That was a figure that was also second in the NFL only under T.J. Watt. Allen also proved to be an all-around player by acquiring a 73.2 overall grade against the run in addition to his accolades as a pass rusher.

Simply put, Allen’s journey with the Jags is an example of how a homegrown talent should approach an NFL career. For this reason, the right thing for the Jags to do was to compensate him properly. While it may have taken longer than it should’ve, the organization made it happen, and Allen’s contract is one that should speak positively for those looking to join the organization in the future. 

The deal makes a trade for a veteran WR more achievable… If the Jags want to go that route

With Allen’s deal now done, his cap hit for 2023 went from just over $24 million under the franchise tag to an $11.1 million cap hit. That saved the Jags about $12.9 million for the 2024 season and put them at a total figure of approximately $31.5 million, according to Spotrac. While the Jags may be eyeing a deal for Lawrence as a top priority, getting the young quarterback another veteran weapon should be on the table, too. 

The Jags had interest in trading for San Francisco 49ers receiver Brandon Aiyuk earlier this offseason, according to 1010XL’s Mia O’Brien. This news came after the team had already signed receiver Gabe Davis, which signals that they don’t necessarily want him to be the only big offseason addition at receiver. 

Drafting an edge rusher at pick No. 17 is likely off the table now 

There have been plenty of mock drafts where the Jags have had the opportunity to draft a really good player on the edge with the No. 17 overall pick like Laiatu Latu from UCLA, Jared Verse from Florida State, or Dallas Turner of Alabama. Allen’s deal has lowered their chances of being selected by the Jags, though a team could never have enough pass-rushers. On top of that, the Jags drafted Travon Walker, who is coming along fine, almost two years ago in the first round.

That said, the time to add some help on the edge will definitely have to come outside of the first round. When looking at their needs, the Jags may choose to take a cornerback instead, if options like Terrion Arnold and Quinyon Mitchell are available. Trading up or back for a receiver shouldn’t be out of the realm of possibilities, too, as we’ve already mentioned the need there. Lastly, taking advantage of this solid offensive line class early wouldn’t be a bad idea either, but the Jags would have to likely trade Cam Robinson to avoid drafting a non-starter.