What Is a Franchise Tag in the NFL?
The "franchise tag" is an element of the National Football League's free agency system--one that's not particularly popular with players because it limits their freedom to move from one team to another. "Every player will tell you he doesn't want [the franchise tag] on him," former NFL general manager Charley Casserly told USA Today in 2008. "From the team's point of view, it's a business. You want to keep the player."
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History
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At one time, a professional athlete couldn't switch teams on his own, even when his contract had expired. His previous team still held the exclusive right to sign him, unless it chose to trade that right to another team, or simply release the player. In the mid-1970s, an arbitrator's ruling gave Major League Baseball players "free agency"--the right to sign with any team they chose. True free agency didn't come to the NFL, however, until 1993. Even then, the collective bargaining agreement worked out between the league's owners and players placed some limits on free agency. One of these was the "franchise tag."
Purpose
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The idea behind the franchise tag is that some players are so valuable to their teams--so irreplaceable--that they can't be allowed to leave in free agency. The '93 labor deal gave each NFL team the right to pick one player eligible for free agency each year and designate him as the team's "franchise player." In NFL jargon, when you have been so designated, you've had the franchise "tag" applied to you. However, teams are not required to name a franchise player.
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Types
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There are two types of franchise tags: exclusive and non-exclusive. The exclusive tag prevents a player from negotiating with any other team; in return, the team must offer him a guaranteed salary equivalent to the average of the five best-paid players at his position for the upcoming season, or 120 percent of his salary the previous year, whichever is more.
A player who receives the non-exclusive tag is allowed to negotiate with other teams, but his current team has the right to match any offer. If the current team chooses not to match that offer and the player signs with the other team, that club must give up two first-round draft picks. When a team applies the non-exclusive franchise tag to a player, it must offer him a guaranteed salary equivalent to the average of the five best-paid players at his position the previous year, or 120 percent of his previous salary, whichever is more. In neither case is the player required to sign his own team's offer, known as a "tender." He can choose to sit out the year instead, or he and the team can work out a long-term contract.
Effects
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Because the price to sign another team's franchise player is so steep, even players with the non-exclusive tag are effectively blocked from free agency. Further, if a player would have been able to command the highest salary at his position in free agency, then the tag will cost him money, because it's based on the average of the five highest. For these reasons, the tag soon became a source of resentment among players.
Consideration
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The one-year contracts offered to franchise players are guaranteed. Once the player signs, all the money is his. That's an important consideration because in the NFL, unlike other pro sports, salaries are usually not guaranteed. If the team chooses to cut you in training camp, you don't get paid.
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