The 37-year-old is due to make over $19 million next season in what is the final year of a five-year, $150 million contract he signed with the Falcons back in 2018.
Per Spotrac , Colts will incur an $18 million dead cap hit, but they are effectively saving $17.2 million against the cap by moving on from Ryan, who carried a $35.2 million cap hit in 2023.
Once released, Ryan will become an unrestricted free agent for the first time in his career, if he opts against retirement.
Ryan spent just one season in Indianapolis after being acquired in a trade with the Falcons. In 2022, the veteran quarterback started 12 games for the Colts, throwing 14 touchdowns and 13 interceptions while completing 67% of his pass attempts.
The former MVP’s contract would have become guaranteed had he remained on the Colts roster this Friday.
The decision to part ways with Ryan comes on the heels of the Colts’ trading Stephon Gilmore to the Cowboys in exchange for a fifth-round pick, another move which opened up some financial flexibility for the organization ahead of free agency.