NFL free agency is just around the corner, with the
The legal tampering window has already begun.
One method to prevent a valuable player from becoming available as a free agent is to offer them a lengthy contract extension. Should negotiations prove challenging, though, franchises have the option of applying the franchise tag to retain the athlete’s services.
We’ll delve deeply into the concept of the franchise tag, explaining its meaning and exploring some of the intricacies associated with it.
What is the mechanism behind the Franchise Tag?
In the NFL, the franchise tag allows teams to retain a player’s services for another year under specific terms. When a player receives this designation, they stay with their current team for an extra season at a predetermined salary. Upon signing the franchise tag, the player gets a completely guaranteed one-year contract. Both parties then have until a specified deadline in July to negotiate a longer-term agreement. Should they fail to agree upon new terms before that date, further discussions must wait until the subsequent off-season.
For instance, the Kansas City Chiefs applied the franchise tag to guard Trey Smith, stopping him from reaching free agency. This arrangement involves a one-year pact totaling $23.4 million, with every penny being entirely guaranteed. The franchise tag would only be revoked if both parties—Smith and the Chiefs—could negotiate and finalize an extended contract.
Teams aren’t obligated to apply the franchise tag every year, with numerous opting out of it. By 2025, this trend may continue.
Only two athletes were given the franchise tag.
; Smith and
Cincinnati Bengals’ wide receiver Tee Higgins
.
How Often Can an Athlete Be Assigned a Franchise Tag?
A player may be subject to the franchise tag up to three times, with the expense rising for consecutive tags. A second franchise tag applied to the same player would amount to 120% of the initial tag’s worth. For instance, consider Higgins; the Bengals utilized the franchise tag on him last year at $21.8 million, then planned another tag for 2025 valued at $26.2 million.
Higgins qualifies for another tagging, although no player has ever received this treatment thrice because of increasing expenses associated with it. Should Higgins join a different team, he would remain eligible for just one additional franchise tag, since Cincinnati used two tags on him previously.
What Is the Distinction Between an Exclusive and Non-Exclusive Franchise Tag?
The non-exclusive franchise tag is the more commonly seen tag in the NFL. Under a non-exclusive franchise tag, players retain the right to negotiate a contract with another team. If an offer from another team is made, the player’s original team has the right to refuse to match the offer. If the franchised player’s team refuses to match the offer sheet, the team that offered him the new deal will be required to send two first-round picks in exchange for signing him.
A team-specific franchise designation stops a player from discussing deals with other franchises, though this usually entails a greater expense. The sum for an exclusive franchise tag is determined by averaging the highest five salary caps at that position once free agency concludes. Should this figure fall below 120 percent of what they were previously paid, the athlete receives 120 percent of their former earnings instead. For the non-exclusive option, the calculation uses either the mean of the leading five cap figures across the past half-decade or 120 percent of the player’s prior pay rate.
At What Point Must a Team Decide Whether to Use the Franchise Tag?
The deadline for applying a franchise tag to a player was March 4. This tagging period lasts for 15 days. Once this deadline has passed, teams have to either negotiate a long-term contract with the player or risk losing them to free agency.
What does the Transition Tag mean?
Like a franchise tag, the transition tag offers a one-year, fully guaranteed contract at a reduced expense compared to the franchise option. Its exact value fluctuates annually and partly depends on the prevailing NFL salary cap. This figure is set according to the league’s Collective Bargaining Agreement (CBA) and adjusts based on the player’s specific role. When assigned this tag, players have permission to discuss terms with other clubs; however, the tagging club retains the prerogative for matching external proposals. Should they choose not to match such an offer sheet, the athlete has freedom to depart without providing remuneration back to their original squad—a distinguishing feature separating the non-exclusive tag from the transition designation.
Do Players Have to Agree to the Franchise Tag?
Players cannot decline the franchise tag, although they might attempt to push for a trade afterward. Nonetheless, when a team decides to apply the franchise tag to a player, that individual has no option to opt out and pursue unrestricted free agency instead.
If Higgins aimed to dodge being labeled for a second consecutive year, he would need to either orchestrate a trade away from Cincinnati or commit to a lengthy contract renewal with the franchise. A notable instance of an athlete declining to play post-tagging is Le’VEON BELL, who sat out the full 2018 campaign after the Pittsburgh Steelers designated him consecutively for the second time. In the subsequent off-season, Bell inked a multiple-year deal with the New York Jets.
Therefore, although declining the franchise tag isn’t actually possible, there are definitely methods to avoid being tagged.
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Describing the NFL’s Franchise Tag and Its Functionality
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