Instant Grade: Colts Hand Daniel Jones Massive Two-Year Extension

The Indianapolis Colts have made a massive commitment at quarterback, agreeing to a two-year, $88 million contract extension worth up to $100 million with Daniel Jones. The new agreement will pay Jones roughly $50 million in the first season, and it is the largest two-year deal in NFL history, according to NFL insider Jordan Schultz.

BREAKING: The #Colts and QB Daniel Jones have agreed to a 2-year, $88M deal that could be worth up to $100M, multiple sources tell me.

He gets $50M in the first year and it’s the largest 2-year contract in history. Both sides wanted this to get done, and it officially makes… pic.twitter.com/ymhQ65MsRg
— Jordan Schultz (@Schultz_Report) March 11, 2026

The extension comes after a breakout season in Indianapolis for the former first-round pick. Jones joined the Colts in 2025 on a one-year, $14 million deal and quickly seized the starting job during training camp. What began as a prove-it opportunity turned into a historic first-half stretch that revived his career and reshaped the Colts’ quarterback plans.

Despite Achilles Tear, Colts Agree to Largest Two-Year Deal in NFL History

In 13 games with the Colts, Jones completed a career-high 68% of his passes for 3,101 yards with 19 touchdowns and eight interceptions. His mobility remained an important part of the offense as well, as he added five rushing touchdowns.

However, Jones' season ended abruptly when he tore his Achilles tendon in Week 14, forcing the Colts to place him on injured reserve. Achilles injuries are particularly concerning for quarterbacks who rely on mobility, and Jones has proven to be one of the more athletic passers in the league. His ability to escape pressure and create plays outside the pocket has been a major element of his effectiveness.

Dec 28, 2025; Indianapolis, Indiana, USA; Indianapolis Colts quarterback Daniel Jones moves along the sideline on a scooter ahead a game against the Jacksonville Jaguars at Lucas Oil Stadium. Mandatory Credit: Grace Hollars-USA TODAY Network via Imagn Images | Grace Hollars-USA TODAY Network via Imagn Images

Even with the injury, Colts general manager Chris Ballard has faith that Jones can make a full recovery ahead of the 2026 season. The team’s early-season success with Jones under center showed the potential of the offense when he was healthy. By offering the largest two-year contract in NFL history, the Colts are signaling confidence that Jones can return to form once he completes his rehab.

Jones & Pierce Are Back Together

One of the reasons that Alec Pierce stayed in Indy on a four-year, $114 million deal is that he wanted to play with Daniel Jones again. Pierce had a career year with Jones under center, eclipsing 1,000 yards for the first time in his career. Pierce became the first player to reach 1,000 yards on under 50 receptions since DeSean Jackson in 2010.

Pierce turned down larger offers from other teams to stay with the Colts. Now, Indy is guaranteed to have the two play together for at least two more years.

Daniel Jones and Alec Pierc — Oct 12, 2025; Indianapolis, Indiana, USA; Indianapolis Colts quarterback Daniel Jones (17) celebrates with wide receiver Alec Pierce (14) after Jones scores a touchdown during a game against the Arizona Cardinals at Lucas Oil Stadium. Mandatory Credit: Christine Tannous-USA TODAY Network via Imagn Images | Christine Tannous-USA TODAY Network via Imagn Images

The team’s willingness to commit to both players signals confidence in the offensive core that helped drive the early-season surge. The focus should now be on trying to replicate that early-season success across a 17-game stretch.

The most important step in making that happen will be keeping Jones and Pierce on the field. Jones has only completed a full season once in his career, so it's certainly a gamble by the Colts to pay him such a large amount of money without knowing his future availability. The biggest question will be his recovery timeline. The Achilles injury could impact his availability during training camp and potentially the start of the 2026 season.

The Colts have retained their biggest in-house free agents. We'll see if their massive spending pays off.

GRADE: C+

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