What Does the Franchise Tag Mean in the NFL?

The franchise tag is a designation used by NFL teams to retain the rights to a player who would otherwise become an unrestricted free agent.

Introduction

In the National Football League (NFL), the franchise tag is a designation a team may apply to a player scheduled to become an unrestricted free agent. The tag binds the player to the team for one season, during which he is paid a predetermined salary for that season.

What is the Franchise Tag?

In the NFL, the franchise tag is a designation a team may apply to a player that they do not want to lose to free agency. The tag binds the player to the team for one year and pays him the average of the top five salaries at his position, or 120% of his previous salary, whichever is greater.

The Different Types of Franchise Tags

In the NFL, each team is allowed to designate one player each year as its franchise player. The label guarantees the player a one-year contract worth no less than the average of the top five salaries at his position, or 120 percent of his previous year’s salary — whichever is greater. Players can be tagged as many as three times in their careers.

There are two types of franchise tags — exclusive and non-exclusive. An exclusive tag means the player cannot negotiate with any other team, and he is considered under contract with his current team for one year at the specified salary. A non-exclusive tag allows the player to negotiate with other teams, but if he signs an offer sheet from another club, his current team has seven days to match the offer and keep him. If it does not match, it receives two first-round draft picks as compensation.

The transition tag is similar to the non-exclusive franchise tag in that it allows a team to retain negotiating rights with a pending free agent by offering him a one-year tender at a specified salary level. But unlike the non-exclusive tag, if another team signs the transition player to an offer sheet, his original team does not receive any draft pick compensation if it declines to match the offer.

Non-Exclusive Franchise Tag

The non-exclusive franchise tag designation allows a team to retain its rights to a player by offering him a one-year contract for an amount no less than the average of the five largest previous year’s salaries at his position, or 120% of his previous year’s salary, whichever is greater. The player can negotiate with other teams, but if he signs an offer sheet from another team, his original team has seven days to match the offer and keep him. If they decline to match the offer, they receive two first-round draft picks from his new team.

Exclusive Franchise Tag

In order to receive the exclusive tag, a team must offer the player a one-year contract worth the average of the top five salaries at his position, or 120 percent of his previous salary — whichever is greater. If the player accepts the offer, he is signed to that contract for the upcoming season. If he declines, he can either sit out the season or sign a one-year deal with his current team for no less than 120 percent of his previous salary.

Exclusive franchise players cannot negotiate with other teams.

How is the Franchise Tag Calculated?

The team’s salary cap is set by the NFL each year, and the franchise tag number is a percentage of that. For 2019, the league-wide salary cap is $188.2 million per team, so the franchise tag for quarterbacks will be $4.75 million (2.5 percent of the salary cap), while the non-exclusive tag for all other positions will be $3.91 million (2.1 percent).

The exclusive franchise tag prevents a player from signing with any other team, while the non-exclusive tag allows a player to negotiate with other teams, but if he signs an offer sheet with another club, his current team has the right to match it and keep him under contract. If the team declines to match an offer sheet, it would receive two first-round draft picks as compensation from the signing team.

What are the Benefits of the Franchise Tag?

The Franchise Tag is a designation given by the NFL to a player that is scheduled to become an Unrestricted Free Agent. The tag binds the player to their team for one year, provided they are given the salary of the highest-paid player at their position, or 120% of their previous year’s salary-whichever is greater.

There are two types of tags-the Exclusive Tag, which only allows the tagged team to negotiate with the player, and the Non-Exclusive Tag, which allows the player to negotiate with any team, but if he signs an offer sheet with another team, his current team has the right to match the offer and keep him. If they choose not to match the offer, they will receive two first-round draft choices from his new team.

The tag can be used once per year on any given player, and teams have until March 5th to designate a Franchise Player.

What are the Drawbacks of the Franchise Tag?

The Franchise Tag is a tool that NFL teams can use to keep their best players from hitting the free agent market. It binds the player to the team for one season, during which he is paid an salary that is determined by the average of the top five salaries at his position.

While the tag allows teams to keep their best players, it also has some drawbacks. For one, it prevents the player from testing his value on the open market. It also puts a strain on team finances, as the Franchise Tag salary counts against the salary cap. And it can create bad blood between a player and his team, as was the case with Kirk Cousins and the Washington Redskins.

How Does the Franchise Tag Impact a Team’s Salary Cap?

When a team uses the franchise tag on a player, that player’s salary counts fully against the team’s salary cap for that year. The franchise tag is a one-year contract that pays the player an average of the top five salaries at his position, or 120 percent of his previous salary — whichever is greater.

Conclusion

In short, the franchise tag is a contract designation used by NFL teams to keep a player from becoming a free agent. The tag binds the player to the team for one year, at which point the player can either sign a long-term extension with the team or become a free agent. There are two types of franchise tags: exclusive rights and non-exclusive. The exclusive rights tag prevents the player from signing with any other team, while the non-exclusive tag allows the player to negotiate with other teams, but gives the original team the right to match any offer.