What $33.4 Million in Cap Space Really Means for Colts

The Indianapolis Colts know their cap figure. Now comes the philosophy behind how they use it.

Following the NFL’s announcement of a $301.2 million league-wide salary cap, it was reported that the Colts are projected to have roughly $33.4 million in cap space entering the 2026 offseason.

That figure, based on current projections from OverTheCap.com, comes before anticipated extensions for quarterback Daniel Jones and wide receiver Alec Pierce.

Jones and Pierce are obviously the priorities, but this increase could allow Chris Ballard to weave in other in-house free agents that Indy could use in 2026, like safety Nick Cross, among others.

On the surface, $33.4 million feels workable. In practice, it shrinks quickly once internal priorities are addressed.

With the cap number set at $301.2M, the Colts will have roughly $33.4M in cap space heading into the 2026 offseason (before the expected Daniel Jones and Alec Pierce extensions).

Top 5 cap hits for 2026 currently (per Over The Cap):

1. Michael Pittman Jr: $29M
2. DeForest…
— Andrew Moore (@AndrewMooreNFL) February 27, 2026

Indianapolis Colts on SI's Andrew Moore also outlined the Colts’ five largest cap hits for 2026, and the distribution tells a clear story about where resources are allocated.

Michael Pittman Jr. leads the way at $29 million, followed by DeForest Buckner at $26.6 million and Quenton Nelson at $24.2 million.

Cornerback Charvarius Ward carries a $20.2 million hit, while left tackle Bernhard Raimann rounds out the top five at $17.5 million.

That is a top-heavy structure built around premium positions, and it leaves little margin for error.

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This structure signals a clear commitment to winning at the line of scrimmage and insulating the quarterback, while paying for their No. 1 receiver and a veteran corner capable of handling high-leverage snaps.

But cap management is less about who you pay and more about when you pay them. Large cap hits can be massaged through restructures, extensions, and bonus conversions, yet each move pushes proration into future years and narrows flexibility down the road.

With Jones and Pierce extensions looming, the timing element becomes critical. Do you lower 2026 hits to stay aggressive now, or preserve long-term maneuverability and accept a tighter spring?

Also, given that Pittman has been floated as a potential cut candidate that would save Indy $24 million, is it smarter to retain the veteran with an extension to space out the money owed?

Cap gymnastics are exhausting, but for the Colts, it might be the way to go with Pittman's deal to keep the offense as intact as possible following an impressive showing through the first half of the 2025 season.

The Colts “aren’t close” to contract extensions with Daniel Jones or Alec Pierce. Both the franchise and transition tags remain options, per @HolderStephen.

Meanwhile, Indianapolis is actively working on a multi-year deal for Jones, which appears to be the priority over Pierce,… pic.twitter.com/KpZKDR9xZ7
— Colts Muse (@ColtsMusee) February 23, 2026

Large cap figures naturally invite discussion, especially when a player carries a $29 million number like Pittman Jr.

The expectation, however, is that an extension designed to smooth the hit is more likely than any drastic roster decision.

Similar questions surface whenever veterans like Buckner or Ward carry significant cap hits. Yet the current trajectory points toward structural adjustments rather than subtraction, with the core of the roster expected to remain intact.

This is the balancing act front offices live in. The Colts are not cap-strapped, but they are operating within defined guardrails that demand precision.

The philosophy appears consistent: retain core pieces at impact positions and build around them rather than reset. The question now is not whether Indianapolis can make moves — it is how aggressively they are willing to structure the future to do so.