The Indianapolis Colts head into the 2026 offseason with a decent chunk of cap space-just under $27 million, to be exact. That figure ranks 13th in the league, according to Over the Cap. It’s a solid starting point, but not exactly a war chest when you consider what’s on their to-do list: re-signing key contributors, locking in their 2026 draft class, and rounding out the practice squad.
And while that $27 million is based on the projected salary cap ceiling-which could rise once the league finalizes the numbers-it’s important to remember that every team will get that same bump. Translation: the Colts might have a little more wiggle room, but so will their competitors.
So if Indy wants to keep players like quarterback Daniel Jones and wide receiver Alec Pierce in-house, they’ll need to be strategic. Jones, recovering from a torn Achilles suffered in Week 14, might come at a reduced price.
Pierce, on the other hand, saw his value climb steadily throughout the 2025 season.
The good news? The Colts have multiple levers they can pull to free up serious cash-up to $46 million in additional cap room, according to Over the Cap.
That’s more than enough to bring back Jones, Pierce, and right tackle Braden Smith if the front office wants to run it back with that core. Let’s break down five key moves Indy can make to create that space.
**1. Releasing WR Michael Pittman Jr.
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2026 Cap Hit: $29 million | Cap Savings: $24 million
Pittman’s been a reliable target and a respected voice in the locker room, no question. But at a $29 million cap hit, the production simply hasn’t matched the price tag. He’s more of a possession receiver-strong hands, dependable routes-but he’s not stretching the field or putting up WR1 numbers consistently.
The only season where he came close to that level of output was back in 2023. In 2025, he averaged just 9.8 yards per catch and finished with 784 yards.
That’s not what you want to see from someone eating up that much cap space. If his number were closer to $16 million, this would be a different conversation.
But with a chance to save $24 million by moving on, this is a tough financial call that leans toward the business side of the sport.
2. Extending RB Jonathan Taylor
2026 Cap Hit: $15.56 million | Cap Savings: $8.61 million (via extension)
Taylor is still the heartbeat of this offense, and even after six years in the league, he’s only 27. That’s a sweet spot for a running back-still explosive, still durable, and still capable of carrying a heavy workload. While the shelf life for backs can be short, Taylor hasn’t shown signs of slowing down just yet.
An extension here makes a lot of sense. Not only does it keep a foundational piece in place, but it also opens up over $8 million in cap space.
With free agency looming, that kind of flexibility could be huge. Locking up Taylor now would be a proactive move-one that rewards performance and helps the bottom line.
3. Releasing K Spencer Shrader
2026 Cap Hit: $1.375 million | Cap Savings: $1.2 million
This one’s about efficiency. The Colts have two kickers on the roster, but only need one.
Shrader looked promising early in the year before a knee injury sidelined him. In his absence, Blake Grupe stepped in and made a case for the job with a stronger leg and clutch performances.
Grupe, an exclusive rights free agent, can be retained with a minimal offer. Shrader, on the other hand, carries a higher cap number and doesn’t offer the same range.
While the savings here are modest, every dollar counts-and so does the roster spot. Moving on from Shrader clears the way for Grupe to take over full-time.
4. Releasing DL Grover Stewart
2026 Cap Hit: $14.25 million | Cap Savings: $12.25 million
Stewart has been a rock in the middle of Indy’s defensive line for nearly a decade. He’s a grinder-tough against the run, dependable, and a leader in the trenches.
But at 33 years old heading into next season, his production has started to dip. In 2025, his tackles and tackles for loss were the lowest they’ve been in a full season since 2021.
General manager Chris Ballard made it clear in his end-of-season press conference: the defensive front needs to get younger and more athletic. Stewart’s value in the locker room is undeniable, but from a cap perspective, saving $12.25 million by moving on could help the Colts retool that unit with fresh legs and more upside.
The Bottom Line
The Colts are in a decent spot financially, but if they want to stay competitive and retain key talent, they’ll need to make some hard decisions. Between releasing veterans with hefty cap hits and extending cornerstone players, there’s a clear path to creating up to $46 million in space. That kind of flexibility opens the door to re-signing Daniel Jones, Alec Pierce, and Braden Smith-while also giving the front office room to navigate the draft and free agency.
This offseason is shaping up to be a pivotal one in Indianapolis. The pieces are there. Now it’s about making the right moves to keep the momentum going.