The Indianapolis Colts and quarterback Daniel Jones have reached a significant agreement that will keep Jones with the team through the next two seasons. The deal, confirmed by CBS Sports NFL insider Jonathan Jones, is a two-year contract worth $88 million, with the potential to reach $100 million when factoring in various incentives. This contract removes Jones from the transition tag, which the Colts had previously applied to him, and provides financial security and stability for both the player and the organization.
Jones, who is 28 years old, had been negotiating a long-term deal with the Colts even after receiving the rarely used transition tag. This tag was set to pay him $37.833 million for the 2026 season—about $6 million less than the franchise tag—while still allowing him to entertain offers from other teams. The Colts would have retained the right to match any offer Jones might have received from elsewhere. However, the two sides ultimately decided to finalize a multiyear contract instead. Notably, the new deal includes $50 million guaranteed in the first year alone, which is more than $13 million above what Jones would have earned under the transition tag. At an average of $44 million per year, Jones now ranks 18th among current NFL quarterbacks in annual salary.
Jones’s journey to this point has been remarkable. After being released by the New York Giants midway through the 2025 season, he briefly landed on the Minnesota Vikings’ practice squad. This turn of events was unexpected for a former first-round pick who had signed a lucrative four-year, $160 million contract with the Giants just two years prior. It appeared Jones might become a journeyman quarterback, bouncing from team to team. However, his fortunes changed when he signed a one-year, $14 million contract with the Colts and earned the opportunity to compete with rookie Anthony Richardson for the starting quarterback position.
Jones seized that opportunity and performed admirably, leading the Colts to an 8-2 start. Unfortunately, his season took a downturn after he suffered a fractured tibia, an injury he played through, followed by a season-ending torn Achilles tendon. The Colts finished the season 8-9, missing the playoffs. Despite the injuries and disappointing team finish, Jones’s individual performance was impressive. He ranked third in net yards per attempt (7.7), sixth in completion percentage (68%), and ninth in passer rating (100.2). He also led the league in expected points added per play, showcasing his playmaking ability and athleticism in Shane Steichen’s offense. His ability to make clutch throws and effectively run the offense was a key factor in the Colts’ early season success.
Looking ahead, the Colts are optimistic that Jones can recover fully from his Achilles injury and return to the form he displayed early in the 2025 season. The team’s offensive weapons remain strong despite some changes. They invested heavily in wide receiver Alec Pierce, who showed significant improvement, though they traded away wide receiver Michael Pittman Jr. Additionally, the Colts still have star running back Jonathan Taylor, a solid offensive line, and tight end Tyler Warren, who impressed during his rookie year. Defensively, the Colts anticipate boosts from the healthy returns of cornerbacks Sauce Gardner and Charvarius Ward, which should help shore up the defense.
The negotiations and final contract underscore the balancing act between player desires and team financial constraints. The Colts wanted to keep Jones, which is why they applied the transition tag initially. Jones, on the other hand, sought a more lucrative and secure deal, prompting continued discussions. The resulting agreement offers benefits to both sides. Jones gains a significant pay raise for 2026 despite his injury and the security of a two-year contract. This arrangement also means that if he performs well, he will be able to enter free agency again at age 30, potentially securing another major contract. For the Colts, the deal represents a substantial but reasonable investment in a starting quarterback, particularly one who showed promise before his injury. With $50 million guaranteed, the team has a degree of protection if Jones struggles, as the full $88 million is not guaranteed.
The Colts’ offseason focus will heavily revolve around Jones’s recovery and performance, as well as the development of their receiving corps. Alec Pierce, despite not yet establishing himself as a top-tier receiver, made a notable leap in 2025. He became the first player since 2019 to surpass 1,000 receiving yards while averaging over 20 yards per