What is the Franchise Tag in the NFL
The franchise tag is an NFL roster designation that allows a team to retain a player set to become a free agent by guaranteeing them a one-year contract at a high salary based on position averages.
The franchise tag is a roster designation in the NFL that gives a team the right to retain one player who is about to become an unrestricted free agent — for one additional year — by offering them a one-year contract at a guaranteed salary. It is one of the most powerful tools in NFL roster management and one of the most contentious issues between players and teams.
How the Franchise Tag Works
Each NFL team is allowed to designate one player per year with the franchise tag. The tagged player must either:
- Accept the one-year tender — The player receives a guaranteed one-year salary equal to the average of the top 5 salaries at their position over the prior year, or 120% of their previous year's salary, whichever is higher
- Negotiate a long-term extension — Teams can tag a player and continue negotiating a multi-year deal before the July 15 deadline; if no deal is reached, the player must play on the tag
If the player refuses to sign the franchise tag, they cannot play for any team that season.
Types of Franchise Tags
| Tag Type | Details |
|---|---|
| Exclusive Franchise Tag | Player cannot negotiate with other teams; receives higher of the two salary formulas |
| Non-Exclusive Franchise Tag | Player can negotiate with other teams; if they sign elsewhere, original team receives two first-round draft picks in compensation |
| Transition Tag | A lesser designation; player can negotiate elsewhere, but original team has the right to match any offer |
Why Teams Use the Franchise Tag
Teams apply the franchise tag when:
- A player is approaching free agency and negotiations on a long-term deal have stalled
- The team wants another year of leverage to negotiate without losing the player
- A player has had one exceptional season and the team wants to see whether performance sustains before committing long-term
The Player's Perspective
The franchise tag is deeply unpopular with many players because:
- It forces them to play on a one-year deal with no long-term security
- They cannot test their open market value
- One injury can devastate their earning potential
Many star players have held out rather than report while tagged, leading to high-profile standoffs between teams and players.
Franchise Tag and the NFL Salary Cap
Because franchise tag salaries are tied to position averages, they inflate dramatically as the NFL salary cap rises. Tagging a star quarterback, for example, can cost $50+ million in a single year — making it financially unsustainable to use multiple consecutive times.
Notable Franchise Tag Situations
- Le'Veon Bell (2018) — Sat out the entire season rather than play on the tag with the Pittsburgh Steelers
- Kirk Cousins — Tagged twice by the Washington Commanders before finally reaching a long-term deal
- Dak Prescott — Tagged by the Dallas Cowboys while negotiating what became one of the richest QB deals in history
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