Jori EpsteinSenior reporterWed, March 4, 2026 at 2:43 AM UTC·2 min readThe Indianapolis Colts tagged quarterback Daniel Jones on Tuesday, but chose to use the $37.8 million transition tag rather than the $43.9 million franchise tag. The tag may send a message about the Colts’ long-term plans — while also clarifying the climate of negotiations.
The transition tag gives the other 31 teams more ability to sign Jones than the franchise tag would have. While a non-exclusive franchise tag would have allowed teams to negotiate with Jones, they would have owed the Colts two first-round picks in order to complete the transaction. The transition tag, meanwhile, allows teams to negotiate with Jones free of any draft compensation hangup — though the Colts do have the right of first refusal to match any offer.
AdvertisementAdvertisementAdvertisementThe Colts may be willing to bet on Jones glimpsing the market because they know teams will see that his December Achilles tear presents a huge question mark. Jones played MVP-caliber ball to start the 2025 season. But his play tailed off some as the season elapsed, and then his injury followed. Additionally, the bulk of Jones’ résumé reverts to a mean below what he displays in 2025. The Colts will need to decide: Do they think Jones’ early 2025 performance is indicative of his long-term ability under head coach Shane Steichen? And do they believe his rehabilitation is progressing well enough that they can count on his physical ability to execute that level of play? Paying a player before they came back from injury is risky but not totally unheard of: The Cowboys gave quarterback Dak Prescott a mega-contract in March 2021 before he had returned from a compound fracture and dislocation of his ankle.
Colts brass may prefer to watch Jones play out a one-year deal that doesn’t strap him to the organization beyond 2026, especially if a regime change at general manager or head coach comes. The “risk” ofJones playing well again in 2026 and costing the club is unlikely to be prohibitive from the team perspective: The Colts would still have the opportunity to re-sign him.
There are reasons for the Colts to prefer a one-year deal with Jones on the tag. Some league sources believe that’s reflective of the sentiment among at least some in Colts leadership. And yet: The transition tag smooths the path to a multiyear deal in the event the Colts decide they want to move forward. With Jones owed about $6 million fewer this year than if he were franchise-tagged, the floor for negotiations (with this tag, and a theoretical 2027 tag worth 120% of the 2026 cost) is less prohibitive for conversations.
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