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The Colts structured the contract of wide receiver Alec Pierce in a way that gives Indianapolis salary-cap relief in 2026 and saves the larger cap hits for 2027 and beyond, after several other large contracts come off the books.
Pierce signed a four-year deal worth up to $114 million that includes a $26 million signing bonus, according to a source familiar with the contract, an average of $28.5 million that makes Pierce the 11th-highest paid wide receiver in the NFL.
Indianapolis also included one void year in 2030 that spreads out the cap hit even further, although it will not come into play unless the Colts negotiate an extension at some point in the future. When a player’s signing bonus is calculated, it is spread over the full life of the contract, so teams sometimes include a void year at the end to further divide the signing bonus.
Pierce’s cap hit in 2026 is only $9.2 million because of the way the deal is structured.
From Pierce’s standpoint, the money headed into his bank account is roughly the same. Pierce’s $26 million signing bonus is paid in 2026, and coupled with his $4 million base salary, he gets $30 million in the first year of the deal.
Pierce also gets $30 million in the second year of his contract, but it is paid out in base salary, raising his cap hit in 2027 to $35.2 million. The first two base salaries of his contract are fully guaranteed at the time of signing.
The wide receiver’s base salary in 2028 is $27 million. If Pierce is on the roster on the fifth day of the 2027 league year, $14 million of that salary becomes fully guaranteed, and an additional $10 million becomes fully guaranteed on the fifth day of the 2028 league year.
That $24 million in 2028 is already guaranteed for injury; it becomes fully guaranteed on those dates. Pierce’s base salary in 2029 is $25 million, and he has a $2 million roster bonus that is payable on the fifth day of the league year.
Then the contract automatically voids, meaning the final $5.2 million in prorated signing bonus becomes dead money in 2030 if Pierce is not extended. If the Colts still have Pierce on the roster, they can erase the void year in an extension or a restructure at a later date.
With a low cap hit in 2026, Indianapolis still likely has a significant amount of cap space available in 2026, although the exact amount is dependent on the structure of the contracts the Colts have paid to Alec Pierce and other free agents.
Signing bonus: $26M
2026: $4 million base salary (fully guaranteed), $9.2 million salary-cap hit
2027: $30 million base salary (fully guaranteed), $35.2 million cap hit
2028: $27 million base salary ($24 million guaranteed for injury at signing; $14 million becomes fully guaranteed on fifth day of 2027 league year,
2029: $25 million base salary, $2 million roster bonus
2030: Contract automatically voids, $5.2 million cap hit
This article originally appeared on Indianapolis Star: Alec Pierce's megadeal structured to give Colts extra cap space in 2026
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Pierce signed a four-year deal worth up to $114 million that includes a $26 million signing bonus, according to a source familiar with the contract, an average of $28.5 million that makes Pierce the 11th-highest paid wide receiver in the NFL.
Indianapolis also included one void year in 2030 that spreads out the cap hit even further, although it will not come into play unless the Colts negotiate an extension at some point in the future. When a player’s signing bonus is calculated, it is spread over the full life of the contract, so teams sometimes include a void year at the end to further divide the signing bonus.
Pierce’s cap hit in 2026 is only $9.2 million because of the way the deal is structured.
From Pierce’s standpoint, the money headed into his bank account is roughly the same. Pierce’s $26 million signing bonus is paid in 2026, and coupled with his $4 million base salary, he gets $30 million in the first year of the deal.
Pierce also gets $30 million in the second year of his contract, but it is paid out in base salary, raising his cap hit in 2027 to $35.2 million. The first two base salaries of his contract are fully guaranteed at the time of signing.
The wide receiver’s base salary in 2028 is $27 million. If Pierce is on the roster on the fifth day of the 2027 league year, $14 million of that salary becomes fully guaranteed, and an additional $10 million becomes fully guaranteed on the fifth day of the 2028 league year.
That $24 million in 2028 is already guaranteed for injury; it becomes fully guaranteed on those dates. Pierce’s base salary in 2029 is $25 million, and he has a $2 million roster bonus that is payable on the fifth day of the league year.
Then the contract automatically voids, meaning the final $5.2 million in prorated signing bonus becomes dead money in 2030 if Pierce is not extended. If the Colts still have Pierce on the roster, they can erase the void year in an extension or a restructure at a later date.
With a low cap hit in 2026, Indianapolis still likely has a significant amount of cap space available in 2026, although the exact amount is dependent on the structure of the contracts the Colts have paid to Alec Pierce and other free agents.
Alec Pierce’s contract
Signing bonus: $26M
2026: $4 million base salary (fully guaranteed), $9.2 million salary-cap hit
2027: $30 million base salary (fully guaranteed), $35.2 million cap hit
2028: $27 million base salary ($24 million guaranteed for injury at signing; $14 million becomes fully guaranteed on fifth day of 2027 league year,
2029: $25 million base salary, $2 million roster bonus
2030: Contract automatically voids, $5.2 million cap hit
This article originally appeared on Indianapolis Star: Alec Pierce's megadeal structured to give Colts extra cap space in 2026
Continue reading...
