Understanding the NFL Franchise Tag: What It Means and How It Works

The NFL franchise tag is a key element in the business side of professional football. While fans often focus on touchdowns and tackles, contract negotiations play a crucial role in shaping NFL teams. One of the most talked-about mechanisms during the NFL offseason is the franchise tag, a tool teams use to retain top talent. In this comprehensive guide, we’ll explore what the franchise tag is, how it works, the different types of tags, and what it means for players and teams.

What Is the NFL Franchise Tag

The franchise tag is a designation NFL teams can apply to one player scheduled to become an unrestricted free agent. It allows the team to keep that player for at least one more season without negotiating a new long-term contract. The tag offers a one-year deal that comes with a guaranteed salary, determined by a specific formula set by the league and the NFL Players Association (NFLPA).

This system gives teams a strategic advantage in managing their roster and salary cap while working toward a long-term agreement with a key player.

Why Do NFL Teams Use the Franchise Tag

NFL teams use the franchise tag to avoid losing valuable players in free agency. Often, these players are among the most important members of the roster—such as quarterbacks, wide receivers, edge rushers, or cornerbacks. When negotiations for a long-term deal stall, the franchise tag gives teams more time to work out an agreement without risking the player’s departure.

Using a franchise tag also allows teams to control costs by offering a set, one-year salary based on market conditions instead of immediately committing to a multi-year deal.

Types of NFL Franchise Tags

There are three types of franchise tags in the NFL, each with specific rules and implications:

Exclusive Franchise Tag

The exclusive franchise tag prevents the tagged player from negotiating with any other team. The player can either sign the tag and play for the one-year salary or sit out (which rarely happens). The salary for an exclusive tag is based on the average of the top five salaries at the player’s position for the current year or 120% of their previous salary, whichever is higher.

This tag is most commonly used for elite players, such as franchise quarterbacks or top pass rushers.

Non-Exclusive Franchise Tag

The non-exclusive franchise tag is the most commonly used tag in the NFL. It allows the player to negotiate with other teams, but the tagging team has the right to match any offer. If they choose not to match, the player’s new team must give the original team two first-round draft picks as compensation.

The salary for a non-exclusive tag is based on the average of the top five salaries at the player’s position over the last five years, adjusted for the current salary cap.

Transition Tag

The transition tag offers a one-year contract with a salary calculated by averaging the top ten salaries at the player’s position. The tagged player can negotiate with other teams, and the original team has the right to match any offer. However, if they don’t match, they receive no compensation in return.

This tag is rarely used because it offers fewer protections to teams compared to the franchise tag.

Franchise Tag Salary Calculations

Franchise tag salaries are calculated using a formula that averages the top five salaries at a given position over the past five years and adjusts for the current salary cap. As the salary cap increases each year, so do franchise tag numbers.

For example, a tagged quarterback could earn upwards of $30 million for one season, while a kicker might earn significantly less due to lower positional averages.

Common Franchise Tag Scenarios

Each NFL offseason, several star players receive the franchise tag. High-profile examples include quarterbacks, defensive ends, and wide receivers. While some players sign the tag and play the season, others use it as leverage in long-term contract negotiations.

In some cases, players refuse to sign the tag and hold out, seeking a better deal or a trade. This adds drama and complexity to the offseason for both the player and the team.

Deadline for Franchise Tag Decisions

NFL teams have a limited window—usually from mid-February to early March—to apply the franchise tag each offseason. After the tag is placed, teams and players have until mid-July to negotiate a long-term contract. If no deal is reached by the deadline, the player must either play under the tag or sit out the season.

The Future of the Franchise Tag

The franchise tag continues to be a controversial topic in collective bargaining between the NFL and the NFLPA. Some players feel the tag limits their earning potential and freedom, while teams see it as an essential tool for roster management. As the league evolves, discussions about modifying or eliminating the franchise tag are likely to continue in future labor negotiations.

FAQs

Why Do Teams Use the Franchise Tag?

Teams use the franchise tag to retain important players without committing to a long-term deal right away. It allows teams more time to negotiate a long-term contract or avoid losing a key player in free agency.

How is the Franchise Tag Salary Determined?

The salary for a franchise tag is determined by averaging the top five salaries for the player’s position across the league or by using 120% of the player’s previous salary (whichever is greater). This can vary each year depending on salary cap fluctuations.

Can Players Reject the Franchise Tag?

Players can choose to not sign the franchise tag, but they will not be able to play for another team unless traded. If they don’t sign the tag, they may sit out the season, as seen in past player holdouts.

What Happens After a Player is Tagged?

Once a player is tagged, the team has until mid-July to negotiate a long-term contract. If no deal is reached by that deadline, the player must play under the franchise tag or sit out the season.

Can a Player Be Tagged Multiple Times?

Yes, a player can be tagged multiple times, but it comes with increasing salary demands. The second franchise tag is set at 120% of the player’s previous year’s salary, and the third tag is set at 144% of the second tag’s salary.

To Conclude

The NFL franchise tag is a powerful and strategic tool used by teams to manage talent and salary cap issues. Whether you’re a casual fan or a die-hard football enthusiast, understanding how the franchise tag works helps you better appreciate the business side of the game. From exclusive and non-exclusive tags to transition tags, this mechanism plays a vital role in shaping NFL rosters every season.

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