Daniel Jones
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JACKSONVILLE, FLORIDA - DECEMBER 07: Daniel Jones #17 of the Indianapolis Colts looks on during warmups before the game against the Jacksonville Jaguars at EverBank Stadium on December 07, 2025 in Jacksonville, Florida. (Photo by Mike Carlson/Getty Images)
The Indianapolis Colts have reached an agreement with QB Daniel Jones on a two-year, $88 million contract extension worth up to $100 million with incentives and over $60 million in guarantees, per NFL Network’s Tom Pelissero. The Colts had previously used the transition tag on Jones, worth $37.833 million for 2026. That’s a lot of money to have tied up on the cap for one player, even a quarterback, and now Indianapolis has agreed to a deal that both secures Jones long-term and helps with short-term financial flexibility.
The transition tag is like the franchise tag, except it costs a little less and doesn’t entitle the Colts to draft compensation if another team were to offer him a contract. Indianapolis would still have the right of first refusal, but they wouldn’t get two first-round picks if another team signed Jones like they would if they had used the franchise tag.
Now, however, the Colts have Jones signed on for two years, eliminating that possibility. After opening free agency by signing WR Alec Pierce to a four-year, $116 million deal, the Colts have locked up their top two priorities in free agency without overpaying for either, a decisive win for Indianapolis that should keep them competitive in the AFC in 2026.
Indianapolis Colts QB Daniel Jones is Coming Off a Major Injury
Daniel Jones
GettyKANSAS CITY, MISSOURI – NOVEMBER 23: Daniel Jones #17 of the Indianapolis Colts looks on in the second half of the game against the Kansas City Chiefs at Arrowhead Stadium on November 23, 2025 in Kansas City, Missouri. (Photo by David Eulitt/Getty Images)
Complicating the negotiating process between the Colts and Jones was the fact that Jones is coming off several major injuries suffered during the 2025 season. He fractured his tibia in Week 11 and then tore his Achilles in Week 14, a brutal end to a promising season for both Jones and the Colts.
The Colts began the season 7-1 and looked like the best team in the AFC before Jones fractured his tibia. After that, his play declined, and the offense struggled. When he tore his Achilles, ending his season, the Colts fell off a cliff and failed to win another game. All told, Indianapolis finished the 2025 season 8-9 and missed the playoffs despite such a promising start.
In his first season with the Colts, Jones played in 13 games and threw for 3,101 yards and 19 touchdowns to eight interceptions while completing 68.0 percent of his passes. He added 164 rushing yards and another five touchdowns on the ground.
The Indianapolis Colts Still Have Questions on Defense
So far, the Colts have focused on offense in free agency, making sure to lock up Jones and Pierce. But Indianapolis’ defense still has major concerns. They did sign ED Arden Key to a two-year deal on Monday, but so far that’s the only move they’ve made on defense.
Five-year starter ED Kwity Paye signed with the Raiders in free agency, while starting S Nick Cross remains a free agent. That’s not including LB Zaire Franklin, who was traded to the Packers just before free agency began.
That’s three defensive starters the Colts need to replace, and Indianapolis also needs to add depth at other positions. Expect the rest of the Colts’ offseason to be defense-focused because of this.