Definition of an NFL Franchise Tag
When an NFL team designates a player as a franchise player, they give themselves a certain amount of control over the future of that player. An NFL team can only give one player the franchise tag per year, so it usually is placed on a high quality player that the team intends to keep. This is done to manipulate the salary of a player, and because of this, many players do not like the franchise tag.
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Exclusive
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An exclusive franchise player tag means the club has full negotiating rights with that player and the player can't talk with another club. The team must offer a player a 20 percent increase over his previous year's salary, an equal to or greater salary than the average of the five highest paid players at that player's position at the conclusion of the restricted free agent signing period (April 15) or an equal to or greater salary than the average of the five highest paid players at that players position the previous year, whichever total is greatest.
Non-exclusive
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Non-exclusive franchise players may listen to offers from other teams, but the player's original team has the right to match any offer. If the original team allows a non-exclusive free agent to sign elsewhere, it gets two first-round draft choices as compensation. The conditions for designating this tag are the same as designating an exclusive franchise player, except the team does not have to match the average salary of the top five position players at the tagged player's position at the end of the restricted free agent signing period. Hypothetically, this type of franchise player would be cheaper to keep than an exclusive one.
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Transition
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In order to designate a transition player, a team must offer the player a contract as great as the average of the top 10 salaries of players who played the same position the previous year, or a 20 percent salary increase. Transition players can negotiate with other teams, but the player's original team is given seven days to match any offer. If the team does not match this offer, the team loses the player and receives no draft picks as compensation. As of 2010, a team can designate a transition player in addition to a franchise player. A team can also choose to designate a transition player instead of a franchise player, in which case a team can end up with two transition players.
Impact
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The franchise tag is designed to give a team greater control over the salary of a star player. By only having to exceed the average salaries of top players, or 20 percent of the players' previous salary, teams can often keep top-tier talent for below their free-market value. Teams also use the franchise tag in the final year of large money contracts in order to pay a player below the guaranteed minimum for that year.
Player Reaction
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Because of the salary implications and restrictive nature (the exclusive franchise tag not allowing a player to negotiate with other teams) many players have been outspoken against the franchise tag rules. In 2009, Julius Peppers, then of the Carolina Panthers, threatened to request a trade if he was given the franchise tag. He was most upset about the possibility of being told that he would have to stay with the team, but there are also players upset over the negative effect on their salary.
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References
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