Alec Pierce, Colts Reportedly Agree to Historic Contract in 2026 NFL Free Agency, Updated Salary Cap

The Indianapolis Colts haven't had much to celebrate in recent years, but they will certainly be happy to hold on to one of their top young players.

According to ESPN's Adam Schefter, the Colts and wide receiver Alec Pierce agreed to a new four-year, $116 million contract on Monday. NFL Network's Ian Rapoport added that the deal includes $84 million fully guaranteed with $60 million guaranteed at signing, and Pierce is now the highest-paid free-agent receiver in NFL history.

Per Spotrac, the Colts have under $1 million in salary cap space, so the team will have some work to do to add Pierce's deal to the books.

The Athletic's Dianna Russini reported that the teams interested in signing Pierce in free agency included the New England Patriots, Las Vegas Raiders, Los Angeles Chargers and San Francisco 49ers, but "most had a strong belief" that he would stay in Indianapolis.

The 2025 season was the final year of Pierce's rookie deal and included a base salary of $3.7 million, so Monday's agreement is a major bump in pay for the 2022 second-round pick.

Pierce declared his intention to test free agency this offseason and wanted to land with a team with a stable quarterback situation, but he ultimately decided to stay with the only franchise he's ever known.

In his four years in the NFL, Pierce has established himself as one of the most dangerous deep threats in the league. In 15 games this season, he led the Colts with 1,003 yards for his first career 1,000-yard campaign while also producing six touchdowns and a career-high 47 catches. He averaged 21.3 yards per catch, the most of any receiver to play more than 10 games in 20205. He built off his breakout 2024 season, in which he recorded 824 receiving yards and seven touchdowns while leading the NFL with an average of 22.3 yards per catch.

The Colts handed the reins to veteran quarterback Daniel Jones this season, and it initially paid off in a big way. After starting the year with an 8-2 record, Indianapolis ended the season with seven straight losses and missed the playoffs. Jones suffered a season-ending torn Achilles tendon in Week 14, and the team coaxed Philip Rivers out of retirement, but he wasn't able to stop the skid. Indianapolis placed the transition tag on Jones ahead of the start of free agency in hopes of retaining him.

Pierce has become an integral part of the passing attack, so the Colts should feel confident that they made the right move to reward him with a new deal on Monday.