NFL insider reveals massive roadblock in Daniel Jones’ contract extension as Alec Pierce looks for new deal

The Indianapolis Colts want Daniel Jones and Alec Pierce locked up. However, there’s only one franchise tag, and the clock expires on Tuesday at 4 p.m. ET.

Jones is the Colts’ starting quarterback, while Pierce is their top receiver. Lose either one to free agency on March 11, and Indianapolis is rebuilding its offensive core from scratch.

ESPN’s Jeremy Fowler reported on the situation on Saturday at the NFL scouting combine in Indianapolis. The tag decision has been the loudest topic surrounding the Colts all week.

“The team has made it clear to Pierce that he will be a Colt, either through a tag or a long-term deal, before the new league year,” Fowler wrote. “But while Pierce seems like a logical tag candidate, multiple people connected to the situation believe Jones is a prime candidate for it.

“Pierce has a good relationship with Jones. If the team tags Pierce but doesn’t reach a deal with Jones, for example, that could be an issue for Pierce. Conversely, tagging Jones ensures he will be there in 2026, a move that would appeal to Pierce.”

A franchise tag on Jones runs at $43.9 million, while Pierce’s tag is $27 million. Indianapolis has just over $33 million in cap space, not enough to cover either figure without significant roster moves.

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Transition tag on Daniel Jones could cost Colts dearly if he signs elsewhere

There’s a fallback option on the table; however, it comes with serious consequences. If Indianapolis can’t finalize a long-term deal with Daniel Jones before Tuesday’s deadline, ESPN’s Dan Graziano reported that the team may pivot to the transition tag. It’s a move that would leave Alec Pierce exposed to the open market.

“If the Colts can’t get a deal done with Jones by Tuesday’s tag deadline, it sounds like they’ll put the transition tag on him,” Graziano wrote. “That means Pierce could hit free agency and another team could sign Jones to an offer sheet (and the Colts wouldn’t get draft pick compensation if he were to sign elsewhere).

“I think the Colts push to get a long-term deal done with Jones to avoid those possibilities, but as of Saturday morning, it doesn’t sound close.”

The transition tag on Jones runs at $37.8. Unlike the franchise tag, it provides zero draft compensation if he signs elsewhere. Colts general manager Chris Ballard has hours left to find a path forward but there isn’t a clear one in sight.