Colts Get Daniel Jones, Alec Pierce Updates Ahead of NFL Combine

For the past month, 99% of the talk surrounding the Indianapolis Colts has been about what they will do with Daniel Jones and Alec Pierce, their two most important impending free agents.

Both players have expressed interest in returning to Indianapolis, but with only $35 million in available cap space, the Colts would have to shuffle some things around to keep the two of them together in the near future.

A couple of weeks ago, NFL insider Tom Pelissero delivered an update on how the Colts are expected to open negotiations with Jones. Pelissero brought fans a second update on Monday morning, live from Lucas Oil Stadium.

Colts Expected to Meet Face-to-Face With Jones This Week

"It is also a big week for the Colts and Daniel Jones, who have been in negotiations on a multi-year contract extension to keep him in Indianapolis," NFL insider Tom Pelissero said on GMFB. "The sides, I would anticipate, would meet face-to-face this week. Jones wants to stay here in Indianapolis. The Colts want to keep Jones, who was playing his best football prior to injuries last year.

Daniel Jones and Shane Steiche — Oct 19, 2025; Inglewood, California, USA; Indianapolis Colts quarterback Daniel Jones (17) talks with head coach Shane Steichen during a stoppage in play in the first half against the Los Angeles Chargers at SoFi Stadium. | Jayne Kamin-Oncea-Imagn Images

"The question really is: what exactly is that number that makes sense on a multi-year deal? If the sides cannot come to an agreement on that, a tag is an option, whether that is the franchise tag or transition tag. The deadline for applying that is March 3, just two days after the combine ends, so those conversations this week are going to be pivotal to deciding excatly what direction things go in Indianapolis."

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Jones' torn Achilles tendon and fractured fibula certainly complicate contract talks. The biggest takeaway from Pelissero's update is that the Colts want to bring Jones back on a multi-year deal, not a one-year deal. Most estimates have Jones reeling in anywhere from $35 to $40 million per year in any extension.

Colts Aren't Close to Finalizing a Deal

Obviously, a deal like that would chew up a majority of the Colts' cap space. You can imagine the team would be somewhat hesitant to spend that much money, and according to ESPN insider Stephen Holder, the two sides aren't close to finalizing a deal.

"Regarding the negotiations [with] QB Daniel Jones and WR Alec Pierce, they weren’t close as of my last conversations," Holder posted on X. "I would say the franchise tag AND transition tag are in play. Ballard tends to work on deadline, so this isn’t surprising IMO."

Regarding the negotiations w QB Daniel Jones and WR Alec Pierce, they weren’t close as of my last conversations. I would say the franchise tag AND transition tag are in play. Ballard tends to work on deadline, so this isn’t surprising IMO.

The market for Pierce is 📈
— Stephen Holder (@HolderStephen) February 23, 2026

One interesting thing to point out is that both Pelissero and Holder mentioned the transition tag, which is rarely used in the NFL. The transition tag is cheaper than the franchise tag, but other teams can send in competitive offers to the tagged player. If the team refuses to match those offers, they receive zero compensation if the player leaves.

Under the franchise tag, a team would receive two first-round draft picks if the tagged player accepts another team's offer.

Colts Willing to Tag Pierce

Narrowing in on Alec Pierce, the Colts have both tags on the table.

"They also have another big-ticket free agent to be in wide receiver Alec Pierce, who Daniel Jones loves," Pelissero said. "If Jones ends up getting a deal, a tag would be an option if they can't work out a deal with Pierce, who they'd also like to sign for the long term."

From what Holder's heard, Pierce's market value is up there. Most projections have Pierce earning upwards of $20 million annually, but there's a chance a receiver-needy team would be willing to pay $30 million annually for a guy like Pierce.

The Colts have the whole week to decide if they want to use their franchise or transition tag on either Jones/Pierce.