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Daniel Jones, Colts grades for $88 million contract extension in 2026 NFL free agency
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The Indianapolis Colts and Daniel Jones are in business once again. Indy signed Jones to a two-year extension worth $88 million on Wednesday. That deal is worth up to $100 million counting incentives. Now "Indiana Jones" is under contract with the Colts through the 2027 NFL season.
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Indianapolis used a $37.8 million transition tag on Jones while they negotiated the extension. Jones was rumored to have requested $50 million per year on a new contract. He will end up with that figure if he hits every single incentive. Otherwise, it is a $44 million per year deal on average.
This is huge news for both sides, especially after Jones tore his Achilles back in December . Early reports indicate that Jones should be ready for Week 1 , with one source telling ESPN's Adam Schefter that Jones could even be healthy by training camp. Either way, the short-term future of the organization now rests on Jones' shoulder.
But which side got the better end of this deal?
Here are trade grades for both Daniel Jones and the Colts after Wednesday's big extension announcement.
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Colts retain their franchise quarterback for two-year Super Bowl window
Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images
It is easy to see the appeal of this deal for the Colts.
Indianapolis keeps their Super Bowl window open, such as it is, by keeping Jones in the building.
Remember that the Colts spent two first-round pick on Sauce Gardner at the trade deadline. Indy does not have a first round pick over the next two seasons, which happens to coincide with the years on Jones' contract.
Theoretically, that gives the Colts some protection if Jones does not work out. If the Colts are not happy with Jones after two years, they can at least use a 2028 first-round pick to replace him. They don't have that option right now, so why not ride with Jones?
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The fact that this deal includes $12 million in incentives, compared to salary or bonus, is great for Indy from a purely financial perspective.
All of that being said, the combination of Jones' recent injuries and his streaky track record make it difficult to call this move a slam dunk.
Ultimately, the Colts made a big bet that Sauce could be the final piece of a Super Bowl run in 2026. It did not work out, but keeping Jones makes the most sense without first-round picks.
Solid move by the Colts.
Grade: B+
Daniel Jones lands ideal payday after career season in 2025
Mykal McEldowney/IndyStar / USA TODAY NETWORK via Imagn Images.
This feels like a much easier transaction to judge if you're Jones.
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The veteran quarterback will earn $44 million per season over the next two years with $60 million guaranteed. That makes it the most lucrative contract of his career purely based on cash earned.
Jones now gets two more bites at the apple to prove he can take a team on a deep playoff run. Or even make a Super Bowl. The Colts looked primed to do this in 2025, so it is fair for Jones to hope he could do it again.
Indy was able to pay both Jones and wide receiver Alec Pierce , which is another big victory for him.
If all goes well for Jones, he could earn another extension from the Colts in 2028. Or he could head to free agency and take the best deal available.
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From a purely financial perspective, that is a great situation to be in. Especially considering the quarterback market will only increase between now and then.
Grade: A+
Related: Colts' 2026 NFL Mock Draft roundup after NFL Combine
Related: Colts land Micheal Clemons on $17.5 million contract in move to boost defense
