Jaguars, OLB Josh Allen agree to five-year contract extension. Here are our takeaways

Jacksonville Jaguars general manager Trent Baalke indicated in January that "Josh will be a Jaguar," and followed through with his decree.

There was not much waffling with this one, the Jaguars acted with precision to get a contract extension done with outside linebacker/defensive end Josh Allen ahead of the July 15 deadline for extending franchise-tagged players.

The deal was made official Wednesday afternoon.

“We are pleased to announce the signing of Josh Allen to a five-year contract," said Jaguars general manager Trent Baalke. “Josh is a true pro who has developed into one of the top producing defensive players at his position in the NFL and a cornerstone of our defense. He is a leader on and off the field, and we are excited for Josh and his family, as well as our fanbase."

Allen released a statement as well, thanking the Jaguars organization for placing their faith in him.

“I’m grateful to the Jaguars organization for putting their faith in me once again.  Five years ago, as a first-round pick and again today, they’ve shown that they believe in my talent and value my contributions to this team. I’m prepared to make good on their investment and do whatever it takes to bring a championship to Jacksonville," said Allen.

"Thank you to my wife, Kaitlyn, and my kids Wesley, Julian and Vanessa for supporting me on this journey.  It’s always been my goal to leave a legacy wherever I go, and I’m proud that work continues in Duval.”

The five-year deal is worth a reported $150 million, including $88 million guaranteed. In a massive deal, the Jaguars paid Allen as one of the top players at his position after the pass rusher earned a franchise-record 17.5 sacks last season. Allen was initially set to play this year on a one-year deal after being handed the franchise tag in March.

Done deal!: Jaguars, OLB Josh Allen agree to franchise-record 5-year, $150 million contract extension

The Pro Bowler was originally selected with the seventh-overall pick in the 2019 NFL Draft and has 45 career sacks, good for the second-most in franchise history behind Tony Brackens (55 sacks).

Now that the extension nears finalization, what does it mean for Allen and the Jaguars moving forward?

Josh Allen has 150 million reasons to smile, becomes one of the league's highest-paid players

There was no question of Allen's loyalty to the team or his growing presence in the history of the franchise before agreeing to a contract extension with the team.

Though Allen was not a team captain last season in Jacksonville, many players within the team's locker room looked up to him as one. Allen routinely held court in his corner of the locker room and his interactions with players demonstrated just how much respect he commanded.

His play on the field didn't hurt, either.

In his rookie season, Allen ended the year with the second most pressures among all rookies with 49, according to Pro Football Focus. Years later, last season, Allen finished fifth in pressures (90) among all players and 7th in win-rate.

Now, Allen's reward is becoming not just the highest-paid player in team history, but also one of the highest players at his position. His legacy, however it turns out, will be cemented in Jaguars' history forever.

Among edge rushers, Allen's $150 million deal ranks second behind Nick Bosa in total value. He ranks ahead of New York Giants pass rusher Brian Burns ($28.2 million per year) in average annual salary at $30 million. He also tops Burns by $500,000 with a reported guarantee of $88 million, making Allen the fourth-highest-paid non-quarterback player in NFL history behind Bosa, Chiefs' Chris Jones and Browns' Myles Garrett.

Jaguars can now shift focus to QB Trevor Lawrence's contract extension

Getting a deal done with Allen well ahead of the league's deadline gives Jacksonville several opportunities to improve the team by the start of the regular season. Assuming Allen's contract is backloaded, the team will get some salary cap relief.

But what stands out about the team's deal and the timing of it is the situation surrounding QB Trevor Lawrence and his contract extension with the team. Lawrence finished his third season in the league last year making him now eligible for a contract extension.

Baalke did not rule out an extension for Lawrence this offseason, indicating that the team would be comfortable with paying the franchise QB as soon as possible.

Lawrence is eligible to have his fifth-year option picked up in May, giving the team an extra buffer year if an extension agreement is not reached by the start of the season.

Typically, quarterbacks will sign extensions deep into the offseason or just before the start of training camp as was the case with Chargers QB Justin Herbert. With Allen now under the fold long-term, the Jaguars can shift their full focus to Lawrence as the next man up to ink a mega deal with the team.

Whether or not the team has a deal done by the time camp rolls around remains to be seen, but both Lawrence and the Jaguars are motivated and after the draft, there won't be much holding up upper management from getting it done.

What does Josh Allen's extension mean for the Jaguars, NFL Draft?

Before the Jaguars and Allen reportedly agreed to a five-year contract extension, the team's perceived draft moves looked murky when it came to the pass-rushing position.

Conceivably, the Jaguars could have hedged against Allen, selecting a pass rusher with the 17th-overall pick, giving the team insurance in case they couldn't agree with the former first-rounder.

With Allen locked into a deal for at least five seasons, the net gain from taking another pass rusher early has shrunk.

The Jaguars now have both Allen and fellow pass rusher Travon Walker locked into the team at least through the 2025, likely 2026 season. Though the team could certainly use another pass rusher to take some heat off of their top players, doing so early on might not be as prudent.

The Jaguars have invested significant resources into the position and have bigger holes elsewhere, including at cornerback where the team spends the least money, defensively. According to Spotrac.com, the Jaguars have $26,474,397 invested in the secondary, the lowest total on defense once Allen's contract is factored in.

Note: Spotrac lumped both Allen and Walker into the "linebacker" position for their purposes. The Jaguars' defensive line position technically ranks lower due to cap purposes.

Jacksonville's secondary will need some work this year with Tyson Campbell entering the final year of his deal and journeyman CB Ronald Darby set to hold down the spot opposite Campbell. Investing in the position becomes a priority, especially after Allen's contract extension.

Demetrius Harvey is the Jacksonville Jaguars reporter for the Florida Times-Union. You can follow him on X, formerly known as Twitter, at @Demetrius82.

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This article originally appeared on Florida Times-Union: What Jaguars OLB Josh Allen's contract extension means moving forward