How the NFL Franchise Tag Works Explainer
The franchise tag is a one-year contract designation an NFL team may use on one pending unrestricted free agent. It prevents the player from immediately entering the open market and gives the club more time to negotiate a multiyear deal. A team may use only one franchise or transition designation in a tagging period.
Under a non-exclusive franchise tag, the player can negotiate with other clubs. The original team may match an offer sheet, and if it declines, it generally receives two first-round draft picks as compensation. An exclusive tag prevents negotiations with other teams and uses a different salary calculation.
The required salary is tied to leaguewide pay at the player’s position or to a raise over the player’s previous salary, whichever is greater under the agreement. A second or third consecutive tag carries escalating percentages, making repeated use progressively more expensive.
The tag is not automatically a long-term commitment. Player and team have a league deadline to replace it with a multiyear contract; after that, the player normally can sign only a one-year deal for the season. Until signed, the tender secures the club’s rights but is not yet a player-signed contract.
A team may apply one franchise or transition tag during the annual window.
The tagged player is offered a one-year salary calculated under the labor agreement.
An exclusive-tagged player cannot negotiate with other clubs.
A non-exclusive player may sign an offer sheet, subject to matching rights and draft compensation.
The tag gives both sides time to negotiate a multiyear contract.
After the league deadline, their options for that season become much narrower.
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