The Indianapolis Colts placed the transition tag on Daniel Jones. Was this the right move?

The news broke on Tuesday that the Colts have placed the transition tag on Daniel Jones for the 2026 NFL season. Jones was a free agent this year after signing a one-year deal back in 2025. With that, it had been the hope of many in the organization to keep Jones another year to see if he could replicate the success that he had in the beginning of the season.

There are three reasons why the transition tag was the right move. This is not to be confused with the franchise tag, as that binds the player to the team for one year without any negotiations amongst other teams. The transition tag allows some freedom with the player as he can negotiate with other teams, thus setting their market value. If the player likes an offer from another team, he can leave.

The Transition Tag Is Cheaper

One of the main selling points for teams is that the transition tag, compared to the franchise tag, is cheaper. The transition tag offers a one-year deal that is worth an average of the top 10 salaries of the player’s position from the previous five years. The franchise tag uses the average of the top 5 salaries. Thus, the player is owed less, on average, under the transition tag.

By no means is Daniel Jones worthy of being a top five paid NFL quarterback. Early in the 2025 season, especially before his injury, he was playing like a top 10 quarterback.

The Colts are placing the transition tag on QB Daniel Jones, sources say.

The sides have been in negotiations on a multiyear contract and those talks will continue. The one-year transition tender is worth $37.833 million and gives Indianapolis the right to match any offer sheet. pic.twitter.com/FBJNIYFr75

— Tom Pelissero (@TomPelissero) March 3, 2026

As of now, the $37M that Jones is “worth” in 2026 ranks 17th just behind Matthew Stafford and Patrick Mahomes. With the quarterback value continually climbing, the Colts are not dumb in thinking that Jones will want more money than $37M. This is why the transition tag works well. Jones will be able to explore the market, see what quarterbacks are valued at, and negotiate accordingly. Both the Colts and Jones have full autonomy in what gets solidified. The Colts can match another teams offer to retain Jones and Jones can, essentially, call the shots on how much he thinks he is worth.

The Transition Tag Allows Time for the Colts

The main goal for the Colts is to solidify their long-term franchise quarterback. Early on in the season, it was clear that Daniel Jones could be that guy. Unfortunately, inconsistent play crept in down the stretch, and then Jones suffered a season-ending Achilles injury.

This season-ending injury has many question marks as it takes six to eight months for recovery. The last thing the Colts want to do is to sign a player to a long-term deal only to find out that said player will not recover from injury as expected. Thus, the transition tag allows some time. The Colts have, essentially, secured Jones for the 2026 season and can negotiate long term deals up until July 15th. By that time, any questions or concerns surrounding Jones’ recovery should be midigated.

As a side, if a long-term deal cannot be met, Jones can still play under the tag or restructure another one-year deal. This would create the utmost amount of tension in the room if it came down to it. The goal, ultimately, should be to solidify a long-term deal this season.

The Transition Tag Is Indicative that the Team Wants Daniel Jones

Regardless of what tag it is, most players and fans frown upon them. Typically it can cause the organization to look manipulative in it’s pursuit to maximize on money and not the player’s potential. While these perceptions are at large, there are two things that need to be noted.

1). By utilizing the transition tag, the Colts were able to secure Daniel Jones on their roster for 2026, while also allowing him the freedom to explore the market. One only tags a player if they want to retain that player. There are many other cheaper avenues that a team can explore if they do not see the value or potential in a player. The Colts clearly see value and potential with Jones

2). Since the year 2000, all players (though, there are few) who have been offered the transition tag stayed with the team that year.

While both of these notes seem very positive, it does need to be pointed that they are not predictors of how this will play out. By all accounts, Jones will be a Colt in 2026. The main issue will be whether he gets a long-term deal done or not.