The Indianapolis Colts were stuck between a rock and a hard place with Daniel Jones and Alec Pierce. Ultimately, they chose positional value over anything else, placing the transition tag on Jones, thus leaving Pierce free to negotiate with other teams.
While the Colts are still optimistic about getting a long-term deal done, anything can happen in free agency. Multiple teams will be interested in Pierce, and several of them can probably offer them more money than the Colts.
According to Over The Cap, the Colts are $4.715 million over the salary cap.