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As the free agent market approaches, National Football League teams have an important strategic lever at their disposal: the franchise tag, better known as the franchise tag. This contractual mechanism allows teams to retain a star player whose contract is expiring, while delaying his full access to free agency.
What is a franchise tag?
The franchise tag is a designation that a team can apply to only one player per season. It guarantees the player a fully guaranteed one-year contract, calculated based on a position-specific salary average or a percentage of their previous salary (usually 120%, whichever is more favorable).
This system protects teams that want to retain a key player without immediately committing to a long-term deal. The three types of tags in the NFL
1. Exclusive tag
The exclusive tag prevents the player from negotiating with other teams. His salary is determined by the average of the five highest salaries at his position for the current year.
This is the most expensive option, but also the safest for an organization that wants to avoid competition.
2. Non-exclusive tag
The most commonly used option. The player can talk to other teams and sign an offer. However, his current team can match the offer.
If it refuses, it receives two first-round draft picks as compensation. This formula strikes a balance between asset protection and contractual flexibility.
3. The transition tag
Less restrictive, it also allows the player to negotiate elsewhere. The team can match the offer received, but receives no compensation if it decides not to match.
The salary is calculated based on the ten highest salaries for that position.
Why do teams use the franchise tag?
Franchise tags are primarily used to:
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Buy time to negotiate a long-term extension
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Avoid losing a key player without compensation
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Maintain roster stability before free agency
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Retain strategic leverage in payroll management
For the player, this guarantees a highly lucrative annual contract, but with uncertainty in the longer term.
A strategic management tool
Although each team can apply one tag per year, its use remains relatively limited. Managers often hesitate because of its significant impact on the payroll.
As free agency approaches, the debate returns every season: should teams secure talent on a short-term basis or invest heavily in a multi-year deal?
Created by humans, assisted by AI.
