The Falcons agree to trade quarterback Matt Ryan to the Colts

The Atlanta Falcons are parting with Matt Ryan as their quarterback, even after failing to complete a trade for Deshaun Watson to replace him. The Falcons agreed Monday to trade Ryan, a former league MVP, to the Indianapolis Colts.

The Colts are sending a third-round draft choice to the Falcons for Ryan, the former Penn Charter School star, according to a person familiar with the situation.

The deal came just before a deadline, postponed from last week, for Ryan to receive a $7.5 million roster bonus. That postponement occurred while the Falcons were attempting to land Watson, the three-time Pro Bowl quarterback for the Houston Texans. Instead, Watson agreed to waive the no-trade clause in his contract to facilitate a deal to the Cleveland Browns. The Browns agreed Friday to a deal with the Texans.

The Falcons met with Watson last week and had seemed well positioned to get him. Watson is a native of Gainesville, Ga., and once was a Falcons' ballboy. When the Watson trade didn't happen, the Falcons and Ryan had to decide whether to maintain the status quo or move on. They opted for moving on.

» READ MORE: Matt Ryan was always team-first, Penn Charter mates say

In Indianapolis, Ryan replaces Carson Wentz, who was traded from the Colts to the Washington Commanders. Ryan becomes the Colts' fifth different starting quarterback in a span of five seasons following Andrew Luck, Jacoby Brissett, Philip Rivers and Wentz.

Ryan, who turns 37 in May, is the fourth prominent NFL quarterback to be traded in recent weeks following Russell Wilson, Wentz and Watson. Wilson went from the Seattle Seahawks to the Denver Broncos.

The Browns' Baker Mayfield and the San Francisco 49ers' Jimmy Garoppolo also are expected to be dealt. The Falcons join the Seahawks, New Orleans Saints and Carolina Panthers among the teams in the quarterback market.

Ryan had spent his entire 14-year NFL career with the Falcons, being selected to four Pro Bowls while throwing for 59,735 yards and 367 touchdowns. The Falcons went 7-10 last season under Arthur Smith, their rookie NFL head coach, and missed the playoffs for a fourth straight year.

Ryan was named the NFL's MVP and led the Falcons to the Super Bowl in the 2016 season. They squandered a 28-3 lead in that game before losing in overtime to the New England Patriots.

The $7.5 million bonus was tied to Ryan being on the roster Tuesday. That meant that a trade, barring another postponement, had to be completed Monday by the close of NFL business at 4 p.m. Eastern time. Ryan and the Falcons had agreed last week to push back the qualifying day for the roster bonus from Friday to Tuesday.

Ryan has two seasons remaining on a five-year, $150 million contract that pays him $23.75 million for the 2022 season. He and the team reportedly agreed recently to a restructuring of his contract that would have made a trade all but impossible, based on the salary cap implications for the Falcons, but did not file that revised deal with the league.