Colts capology: By placing transition tag on QB Daniel Jones, Indy is currently over the cap, but have flexibility

The Indianapolis Colts have reportedly placed the transition tag, worth $37.833 million, on pending free agent starting quarterback Daniel Jones, which means they’re currently a projected $4.7 million over the 2026 team salary cap (via Fox59/CBS4’s Mike Chappell):

Now, the Colts salary cap situation remains entirely fluid.

For one, the Colts could still agree to a long-term deal with Jones before free agency hits and potentially lessen his 2026 salary cap hit from the $37.833M.

Second, the Colts have a number of veteran players they could potentially restructure, particularly starting wideout Michael Pittman Jr., who’s due a $29 million cap hit next season. If a trade or restructuring cannot be reached, the Colts could save $24 million by cutting Pittman Jr. outright.

Trading primary backup quarterback Anthony Richardson would also save the Colts a projected $5.4 million.

There’s also a number of other veteran players that the Colts could potentially restructure including starting left guard Quenton Nelson, defensive tackles DeForest Buckner and Grover Stewart, linebacker Zaire Franklin, and cornerback Kenny Moore II.

Still, if the Colts want to free up enough cap space to also retain lead wideout Alec Pierce, who along with Jones is a priority internal free agent, they’ll have to make some moves here—while freeing up some ample cap space.