What is a franchise tag in the NFL?
- Non-exclusive franchise tag
Definition and rules: The non-exclusive franchise tender shall be a one-year NFL player contract for …
— (A), The average of the five largest prior year salaries for players at the position at which the franchise player participated in the most plays during the prior league year, which average shall be calculated by:
- Summing the amounts of the franchise tags for players at that position for the five preceding league years
- Dividing the resulting amount by the sum of the salary caps for the five preceding league years
- Multiplying the resulting percentage by the salary cap for the upcoming league year
— or (B), 120 percent of his prior year salary, whichever is greater.
If the team extends the tender pursuant to this subsection, the player shall be permitted to negotiate a player contract with any club, except that draft choice compensation of two first round draft selections shall be made with respect to such player in the event he signs with the new club.
Meaning: This is by far the most common tag applied to players for a number of reasons. Mainly, teams applying the tag have the ability to match any offer put on the table by another team, but it also costs them less in the case that no other team puts in an offer on the player. The non-exclusive franchise tag cost is determined by 120 percent of the player’s cap number from the previous season or the average of the five largest prior year salaries at the player’s position.
The NFL team that puts the non-exclusive tag on a player can match an offer sheet extended from any other team. Should the team decide to decline to match the offer, the team that tagged the player will receive two first-round picks from the team that signed the player to the team.
- Exclusive franchise tag
Definition and rules: The exclusive franchise tender shall be a one-year NFL player contract for …
— (A) the average of the five largest salaries in player contracts for that league year as of the end of the restricted free-agent signing period that league year
— or (B) the amount of the required tender under the subsection above, whichever is greater.
Meaning: Since 2012, there have only been four players hit with the exclusive franchise tag: Drew Brees (2012), Von Miller (2016), Kirk Cousins (2017) and Le’Veon Bell (2017). Teams placing the exclusive franchise tag on another are essentially acknowledging that they know a player would have a huge market and won’t run the risk of losing them, while also saying they can’t sign a player to an extension.
If a player is hit with the exclusive franchise tag, they will not hit the open market. Their price tag will be limited to either the average of the five largest salaries in player contracts for that active league year or the amount of the non-exclusive tag only if the non-exclusive number is larger (which rarely, if ever, happens). The only way a player can play the following season for a different team is if he is traded by his current team.
- Transition tag
Definition and rules: Each club shall be permitted to designate one player who would otherwise be an unrestricted free agent as a transition player … during the same designation period as the franchise
player designation period.
Any club that designates a transition player shall receive the rights of first refusal specified in this article notwithstanding the number of his accrued seasons. Any transition player shall be completely free to negotiate and sign a player contract with any club during the period from the first day of the league year following the expiration of his last player contract to July 22, and any club shall be completely free to negotiate and sign a player contract with such player, without penalty or restriction, including, but not limited to, draft choice compensation between clubs of any kind, subject only to the prior club’s right of first refusal.
Any club that designates a transition player shall be deemed on the first day of the league year following the expiration of the player’s last contract to have automatically tendered the player a one-year NFL player contract for …
— (A) the cap percentage average of the ten largest prior year salaries for players at the position
— or (B) 120 percent of his prior year salary, whichever is greater.
The tender may be withdrawn at any time, but if such tender is withdrawn, the player immediately becomes an unrestricted free agent. For purposes of this subsection, the “transition tag” for any league year is the average of the ten largest prior year salaries for players at that position.
Meaning: Another tag that is less not often used, the transition tag operates in a similar fashion to the non-exclusive tag, but with a few catches. The price tag is determined by the cap percentage average of the 10 largest prior year salaries at a player’s position or 120 percent of his previous season’s salary, whichever is higher.
A player on the transition tag can negotiate with other teams like those on the non-exclusive tag and can be extended an offer sheet. However, if the player’s current team can’t match the offer of the other team, that player can sign with the other team, which would not have to provide any form of compensation to his previous team.
