The Indianapolis Colts are evaluating whether to apply the franchise tag or the transition tag to either quarterback Daniel Jones or wide receiver Alec Pierce during the upcoming offseason, according to NFL insider Stephen Holder. This decision comes as the team assesses contract values and the available options in the free-agent market.
Daniel Jones Remains a Leading Candidate for Franchise Tag
Daniel Jones appears to be the most likely recipient of the franchise tag, partly due to his impending unrestricted free agency and a substantial projected salary. In 2026, the Colts would need to pay Jones around $47 million under the franchise tag, a significant amount especially given his recent Achilles injury. Jones is set to enter free agency after completing a one-year, $14 million contract for the 2025 season.
Originally drafted sixth overall by the New York Giants in 2019 out of Duke, Jones finished his rookie contract, which totaled over $25 million and included a signing bonus exceeding $16 million. In 2025 with the Colts, Jones played 13 games, throwing for 3,101 yards with 19 touchdowns and eight interceptions. He also contributed 164 rushing yards and added five rushing touchdowns.
Alec Pierce’s Potential Role Amid a Weak Wide Receiver Market
At 25 years old, Alec Pierce is entering the final year of his rookie contract, which spans four years and is valued just above $6.6 million including a nearly $2 million signing bonus. Drafted in the second round in 2022 from Cincinnati, Pierce saw action in 15 games during the 2025 season. He recorded 47 catches on 84 targets, accumulating 1,004 yards and six touchdowns, with an impressive 21.3 yards per catch average.
Given the underwhelming wide receiver free-agent class, the Colts may lean toward offering Pierce a lucrative extension or possibly placing a short-term tag on him for another season to retain his talent.
Implications for Colts’ Roster Strategy Moving Forward
The Colts face a critical decision as they balance financial commitments and roster talent. Applying the franchise tag to Daniel Jones would secure a key position on offense but carry a high salary cap hit. Alternatively, focusing on Pierce could retain a rising wide receiver amid limited free-agent options, allowing the team to negotiate an extension with Jones.
As the offseason progresses, these decisions will shape the Colts’ approach to maintaining competitiveness. Fans and analysts will watch closely for updates regarding contract negotiations and tag designations for both players.
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
