Franchise Tags

Franchise Tags

Each team can apply a franchise or transition tender (“tag”) to one player schedule to become a free agent, which prevents the player from hitting the open market. Due to the drop in the salary cap this season, the salaries for the franchise and transition tag are scheduled to drop due to each being tied to the salary cap.

This year, teams can use this designation from February 18 to 4 p.m. ET on March 4 (the 22nd day preceding the New League Year until 4 p.m. ET on the eighth day preceding the new League Year).

Each of the different tags (non-exclusive, exclusive, transition) can be withdrawn by the team at any time before the player signs it. However, the tenders are guaranteed for skill, cap and injury once signed. A player must sign his tender to be traded to another team.

Teams and franchise players can sign multi-year extensions until July 15 in 2025. If there is no extension in place by that date, the team and player can only agree to a one-year contract for the current season.

A designated player must sign his tender prior to the Tuesday following Week 10 in order to remain eligible to play in the current season.

Prior Year Salary (PYS): A player’s PYS is composed of his base salary, roster and reporting bonuses, prorated signing bonus, and other payments to players for playing in the NFL for the previous League Year, except any performance bonuses outside of roster and reporting bonuses. This is important because it is used for the calculations of the tags.

The Cap Percentage Average is calculated by taking the sum of the franchise tag figures at a player’s position over the previous five seasons and dividing it by the sum of the salary caps over the previous five seasons.

Non-exclusive franchise tag

A player who receives the non-exclusive franchise tag is free to negotiate with other teams. The player receives a one-year deal with a salary set at the greater of (a) the Cap Percentage Average for his position OR (b) 120 percent of his Prior Year Salary.

Let’s use Packers’ wide receiver Davante Adams as an example of the 120 percent increase of a Prior Year Salary. Adams’ franchise tag would have been worth $20.145 million in 2022, which was $1.726 million more than the standard wide receiver tag that season ($18.419 million). This is because Adams had a PYS of $16,787,500 in 2021, and 120 percent of that is higher than the standard tag.

Teams that use the non-exclusive franchise tag hold the right of first refusal. If a designated player signs an offer sheet with another team, the player's previous team has five days to match the offer sheet. Should it decide not to, the player's original team shall be entitled to draft-choice compensation equivalent to two first-round picks.

The 2024 non-exclusive franchise tag values were as follows: QB ($40.241 million), RB ($13.642 million), WR ($23.958 million), TE ($13.826 million), OL ($23.403 million), DE ($22.062 million), DT ($25.122 million), LB ($25.452 million), CB ($20.186 million), S ($18.600 million), ST ($6.313 million).

Players to receive non-exclusive franchise tag in 2025: G Trey Smith (Chiefs), WR Tee Higgins (Bengals) 10

Exclusive franchise tag

A player who receives the exclusive franchise tag cannot negotiate with other teams. The player receives a one-year deal for the greater of: (a) the average of the five-largest PYS at his position at the conclusion of the restricted free agent signing period of the current league year (April 23 in 2025) OR (b) the amount of the non-exclusive franchise tag.

Last player to receive an exclusive franchise tag: Dak Prescott (with the Cowboys in 2020)

Transition tag

A player who receives the transition tag is free to negotiate with other teams. The player receives a one-year deal for the greater of: (a) the Cap Percentage Average of the top 10 greatest PYS at the player's position OR (b) 120 percent of his own PYS. Should such a player sign an offer sheet with a new team, his former team has five days to match the offer sheet. The transition tag is a cheaper alternative to the franchise tag (i.e. the franchise tags for QBs in 2025 is $40.241 million, while the transition tag is $35.377 million). However, should his former team decide not to match, there is no draft-pick compensation tied to the transition tag. If a transition player has not signed an offer sheet with a new team by July 21, he can only negotiate and sign with his prior team that season.

Last player to receive transition tag: Kyle Dugger (with the Patriots in 2024).

Multiple franchise tags

When a player receives the franchise tag for a second time, he will receive a 120 percent increase of his previous franchise-tag salary (or the tag number for the current season, if higher). If a team places the franchise tag on a player for a third time, the player will receive the greater of: (a) the quarterback tag, (b) 120 percent of the average of the top five PYS at his position or (c) 144 percent of his second franchise-tag salary.