On Tuesday, the Indianapolis Colts applied the transition tag to Daniel Jones. What is the difference between the transition tag and the franchise tag, and can he still sign with another team?

After an outstanding 2025 NFL season, the veteran quarterback was expected to land a lucrative long-term deal. Instead, the Colts opted to use the transition tag, reminding the New York Giants of their failed decision with Jones in 2023.

A transition tag is not the same as a franchise tag. There are key differences between the two, and the Colts are likely betting that Jones will not receive an offer sheet they are unwilling to match.

What is a transition tag in the NFL, and how does it differ from the franchise tag?

The transition tag is rarely used in the NFL. For a quarterback, it was last applied in 1996, when the Atlanta Falcons used it on Jeff George. The differences compared to the franchise tag are significant.

First, under both the exclusive and non-exclusive franchise tag, a player’s rights are more tightly controlled. In the non-exclusive version, a player can negotiate with other teams, but if his original team declines to match an offer, it receives two first-round picks as compensation. Under the transition tag, however, if the original team declines to match an offer sheet, it receives no compensation at all.

Second — and likely the main reason the Colts chose this option — is the financial aspect. A franchise tag guarantees a one-year contract based on the average of the top five salaries at the player’s position over the last five years. The transition tag, on the other hand, is calculated using the average of the top 10 salaries at the position, making it less expensive.

Colts hope not to receive any offers for Daniel Jones

Even though Daniel Jones delivered a strong 2025 season, the torn Achilles injury raises questions about his level once he returns. That may be one of the main reasons the Colts applied the transition tag, hoping other teams remain hesitant and choose not to submit an offer sheet for the quarterback.

Despite the transition tag allowing Jones to negotiate with other teams, the Colts still hold significant leverage. If another franchise presents an offer sheet, Indianapolis would have the right to match it. Given the circumstances, the Colts would likely do so rather than risk losing Jones without receiving any compensation in return.