What is an NFL Franchise Tag?
The NFL is firmly entrenched in its annual offseason, and attention has shifted from the gridiron to the front office. The final act we saw on the field was the Philadelphia Eagles' shocking dismantling of the Kansas City Chiefs at Super Bowl LIX. Now, Philly is the team to beat, and it's up to the rest of the league to improve if they are to rip the Lombardi away from the Linc next season.
The offseason is the time in which the building blocks are put in place for a championship bid. The upcoming draft is one area where teams can aim to pick up raw talents, with the likes of Cam Ward, Shadeur Sanders, and Travis Hunter all expected to play starring roles. Then, there is the trade market, with superstars such as Kirk Cousins thought to be available.
One final place in which teams can strengthen their respective rosters is free agency. The Cincinnati Bengals' Tee Higgins is the biggest name out of contract this summer, but in a bid to keep the sensational wide receiver at Paycor Stadium, the Bengals have placed a franchise tag on their star wideout. "What on earth does that mean?" we can hear you saying.
Well, worry not, here is the full breakdown.
What Exactly is the Franchise Tag?
Simply put, the franchise tag is a mechanism that allows teams to lock in one of their key players for an additional year if they cannot agree on a long-term deal. This ensures the player doesn't hit the open market as a free agent. However, it’s not all smooth sailing, as this one-year designation often comes with tension between a player's desire for financial security and the team's need to budget wisely.
Once tagged, the player is guaranteed a one-year contract based on a predetermined value. If no long-term deal is reached, the player will play on the tag-or choose to hold out, a strategy some have deployed in the past.
Types
Non-Exclusive
The non-exclusive franchise tag is the most common of the three options. This gives players some freedom. A tagged man can negotiate with other teams to sign an offer sheet. If another outfit makes a bid, the original team has two options—match the offer and keep their star or decline the offer and receive two first-round draft picks as compensation.
Star running back Saquon Barkley was given the non-exclusive tag by the Giants in 2023. While he remained tied to the team, his contract value was locked at the predetermined figure, leaving little room for big pay raises he might have sought as a free agent. Ultimately, at the expiry of that tag, however, he was eligible for a mighty new contract elsewhere, and shockingly, the Giants allowed him to take it. The rest, as they say, is history.
Barkley moved to the Philadelphia Eagles and went on to have a blockbuster 2024, winning offensive player of the year honors as he became just the ninth man in history to enter the 2,000-yard club. But he wasn't finished there. Blistering displays in the postseason saw him lead Philly to the Super Bowl before a rampant defense and Jalen Hurts took over, leading their side to a famous victory against the Chiefs.
Tee Higgins currently finds himself tagged for the second straight year. He was tagged at the end of the 2023 season as well, and the Bengals have opted to use the same tactic this close season.
The bookies seem to think that it should be enough to keep him in Cincy next season. The latest Bodog football betting odds make Higgins a -500 shot at remaining with the Bengals next season. However, both the Denver Broncos (+600) and the Pittsburgh Steelers (+1000) are thought to be snooping around for his signature. Check back in with Bodog football as things unfold to see what the likely outcomes are.
Exclusive
With this designation, a player is completely tethered to their current team. They cannot negotiate with other franchises, leaving them at the mercy of the team’s contract offer. The value of an exclusive tag is typically higher, calculated as the average of the NFL's top five salaries at the player’s position for that year—or 120% of their previous year’s earnings, whichever is greater. Dak Prescott received the exclusive tag from the Dallas Cowboys in 2020, ensuring that the quarterback didn’t field offers from other teams, keeping him firmly entrenched as the face of the franchise.
Transition
The transition tag serves as a less binding mechanism. While it allows the original team the right to match any outside offers made to the player, the team receives no compensation if they lose the player to another franchise. The pay for the transition tag is slightly less lucrative than the non-exclusive tag, as it is calculated as the average of the top 10 salaries at the player's position for the current year.
Example: Though not as commonly used, the transition tag was employed on linebacker Charles Clay by the Miami Dolphins in 2015. The move allowed the Buffalo Bills to swoop in and sign him after Miami refused to match their offer.
Rules of the Game
Teams are only allowed to use the franchise tag on one player per year. However, they can apply the designation to a player multiple times. If a player is tagged a second time, their salary increases by 120% of the prior year’s tag value, as is the case with Higgins and Cincinnati. A third tag further spikes the cost, escalating it to 144% of the prior year’s figure. Unsurprisingly, this financial leap often discourages teams from tagging a player too many times.
The deadline for securing a long-term deal is another key element. If the two sides fail to reach an agreement by July 15, the player must play under the tag-or hold out.
Tagging History: Drama and Implications
The franchise tag has had no shortage of high-profile uses and dramatic consequences. Over the years, players like Le’Veon Bell brought the effects of the tag into the spotlight. He famously refused to play under the franchise tag in 2018, sitting out the entire season rather than accepting what he felt was an undervalued deal. Though this decision underscored the tag’s controversial nature, it allowed Bell to finally test free agency the following year.
More recently, Baltimore Ravens quarterback Lamar Jackson was tagged in 2023, sparking speculation about long-term plans and testy negotiations. He went on to win the MVP award and led the Maryland outfit to the AFC Championship game, performances that secured him a bumper new $260m five-year deal at M&T Bank Stadium.