What the Colts' Transition Tag Decision Means for Alec Pierce

The Indianapolis Colts waited until an hour before Tuesday's 4 p.m. deadline to use their transition tag on quarterback Daniel Jones, who was set to become an unrestricted free agent next week alongside wide receiver Alec Pierce.

The Colts are still working toward multi-year deals for both Jones and Pierce, but Tuesday's news means Pierce will still become a free agent.

Over the past month, most thought that the Colts would use their tag on Pierce, who is expected to draw serious interest in the open market. Instead, they opted to use the rare transition tag on Jones, a decision that signifies a few things.

Colts Believe Tagging Jones Could Entice Pierce to Return

Jan 4, 2026; Houston, Texas, USA; Indianapolis Colts wide receiver Alec Pierce (14) catches a touchdown pass against the Houston Texans during the first half at NRG Stadium. | Thomas Shea-Imagn Images

In an earlier report from Jeremy Fowler of ESPN, the Colts figure that using the tag on Jones could appeal to Pierce. The fourth-year receiver expressed an interest in playing alongside Jones for another year during end-of-season interviews, but the two sides haven't been able to agree on a number just yet.

Now that Jones is tagged, the Colts could be thinking that Pierce may want to take a little less money now that he knows who the quarterback will be in 2026. Of course, teams can still offer Jones a massive contract while he's on the transition tag, but the Colts get an opportunity to match any offer Jones receives.

Pierce, on the other hand, will draw interest from around the league next week. Teams can begin negotiations on March 9, and there are several receiver-needy teams with cap space to blow. The Tennessee Titans and Las Vegas Raiders are both in need of a WR1, and both teams have over $88 million to work with.

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Colts Still Working on Multi-Year Deals

If the Colts want to keep their core offensive pieces together, it's going to cost a lot of money. The transition tag on Jones would cost Indy $37.8 million, which is somewhat cheaper than the $43.8 million franchise tag. It's unclear what number Jones is demanding in a multi-year deal, but one would imagine it's within the $40 million a year range.

According to a report from Dianna Russini of The Athletic, Pierce and the Colts are still working on negotiations, and there is a chance the two sides can agree to a deal before free agency opens.

Alec Pierce’s reps and the Colts continue to negotiate at this hour, one other note that helps Indy: Alec’s brother Caden, a standout basketball player for Princeton, recently transferred… to Purdue.
— Dianna Russini (@DMRussini) March 3, 2026

Pierce had the best year of his career with Jones, hauling in 47 receptions for 1,003 yards and 6 touchdowns. Four of those touchdowns came from Riley Leonard and Philip Rivers, but Pierce and Jones were connecting on deep balls nearly every week in the first half of the season.

ESPN reporter Stephen Holder said that the Colts' decision to keep Jones is "VERY important" to Pierce, so we'll see if the Colts can negotiate a deal with one of the two within the next week.

Whatever you think of the Colts’ decision to tag Daniel Jones, the below statement remains true. Moving a step closer to keeping Jones in-house (via transition tag) is a positive for retaining Pierce. He wants clarity at QB before signing.

This is VERY important to him. https://t.co/EMcUaUuAwD
— Stephen Holder (@HolderStephen) March 3, 2026

As of Wednesday, the Colts only had about $33 million in cap space to work with. They'll need to make some other roster moves to free up money, such as cutting or extending Michael Pittman Jr.

Pittman has a $29 million cap hit in 2026. If the Colts cut him, they'll save $24 million. If they extend him, they could prorate his cap hit over the length of a few years and keep him for 2026.

The Colts have several contract situations to take care of this offseason. Pierce and Jones are the most important, but they can't pay both without moving money around elsewhere.